Kenneth J Arrow | Social Responsibility and Economic Efficiency

question 16

Multiple Choice

Kenneth J. Arrow | Social Responsibility and Economic Efficiency
Arrow first reveals the shortcomings in arguments against the social responsibility of firms, or in arguments for profit maximization, setting the stage for why firms should be held responsible to society. In particular, corporations should be held responsible for the harms they cause, such as pollution and traffic congestion, for which they do not pay any costs. Lastly, regulations for such social obligations should be embodied in institutional, legal, or ethical manner, so all firms will accept that their competitors will also be held liable for their fulfillment.
-According to Arrow, behavior that we would regard as highly ___________ in physician is judged less harshly when found among businessmen.

• A) reprehensible
• B) acceptable
• C) honorable
• D) indifferent

---

Definitions:

U.S. Health Care Spending

The total amount of money spent on health care services and products in the United States.

Unemployed

describes individuals who are capable of working and are actively seeking employment but are unable to find a job.

Uninsured

Individuals or entities that do not have insurance coverage, either by choice or due to ineligibility.

Health Insurance

A type of insurance coverage that pays for an insured individual's medical and surgical expenses.