Which of Following Practices of a Firm Satisfies Its Ethical

question 81

Multiple Choice

Which of following practices of a firm satisfies its ethical responsibilities?

• A) using plastic as the packaging material though it is harmful to the environment, yet legal
• B) outsourcing production to a less developed country and paying wages that are below its own country's accepted minimum wages
• C) using advertising and other forms of promotion to endorse luxurious lifestyles
• D) selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns

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Definitions:

Induced Consumption

Consumer spending that varies with income, representing the portion of income that households spend on goods and services rather than saving.

Disposable Income

Income available to households for the strategies of saving and spending after tax deductions.

Billion

A Billion is a numerical value equivalent to one thousand million (1,000,000,000) in the American short scale, commonly used in financial and demographic contexts.

Saving

The portion of income that is not spent on consumption or taxes, often set aside for future use or investment.