The First and Primary Argument for Corporate Social Responsibility Is

question 6

Multiple Choice

The first and primary argument for corporate social responsibility is

• A) it is a way to gain more power.
• B) business is best equipped to handle social problems.
• C) it is in business's long range interest to be socially responsible.
• D) the free-market economic system has proven to be ineffective in dealing with social problems.

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Definitions:

Self-correction

The adjustment process by which economic variables return to their long-run equilibrium without government intervention, often seen in business cycle contexts.

Nominal Wages

The amount of money paid to workers before adjustments for inflation, representing the face value of compensation received.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from work.

Recessionary Gap

A scenario in which the actual GDP of an economy falls short of its potential GDP, showing that resources are not being fully utilized.