The Board of Directors of the Four Forks Generating Corporation

question 75

Multiple Choice

The board of directors of the Four Forks Generating Corporation is meeting to consider the construction of a new electrical generation facility near the Four Forks River. Director Appleton prefers a coal-burning plant because it promises to be the most profitable alternative. Over the short term at least, a coal plant will be by far the least expensive facility to build and operate. Coal is cheap and the considerable pollution from the plant won't affect anything within hundreds of miles from the plant.

Director Estrella wants a nuclear plant to be located 30 miles upriver from the biggest city in the area. Nuclear power is cleaner than coal. Completely safeguarding the community against accidents in the plant or the disposal of toxic waste could be very expensive. However, Estrella has discovered that the job can be done much more cheaply by cutting some corners–while still strictly following all laws–and creating some additional risk for the community.

Director Jossleman supports the most expensive option of the three–she wants a wind farm to be built along the banks of the river on top of a ridge. The wind turbines produce absolutely no pollution and pose no threat to the community or the environment. They are expensive to build and to operate at the current time because they require elaborate back-up systems to function when the wind isn't blowing.

-Director Estrella exhibits which of the following social responsibility views?

• A)social awareness
• B)socioeconomic view of social responsibility
• C)classical view of social responsibility
• D)social obligation

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Definitions:

Consumers

Individuals or groups that purchase goods and services for personal use, not for manufacture or resale.

Efficiency

The state or quality of being capable of producing desired results with a minimum expenditure of energy, time, money, or materials.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods or services.

Property Rights

Legal rights to use, control, and benefit from owning property, both tangible and intangible.