Arnold Is a Firm Believer in Milton Friedman's View of a Firm's

question 24

Multiple Choice

Arnold is a firm believer in Milton Friedman's view of a firm's social obligations. With which of the following statements is Arnold most likely to agree?

• A) Businesses can use their resources to create profit as long as they do so within the rules of the game.
• B) Firms must go beyond their economic responsibility and act in socially responsible ways.
• C) Firms should define value creation broadly in terms of environmental impact.
• D) Businesses should engage in open and free competition without deception or fraud, only as long as their competitors do so.

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Definitions:

Dirty Work

Unpleasant, difficult, or demeaning tasks often avoided by many but necessary within a specific context or job.

Oppressed Minorities

Groups within society that face systematic discrimination, marginalization, and denial of their rights, often based on ethnic, racial, religious, or gender identity.

Income Effect

The change in an individual's or economy's income and how that change affects the quantity demanded of a good or service.

Substitution Effect

The substitution effect occurs when consumers replace pricier items with less expensive alternatives as prices rise.