The Recognition That Business Activities Affect Society and the Consideration

question 96

Multiple Choice

The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as

• A) business ethics.
• B) corporate ethics.
• C) code of ethics.
• D) community responsibility.
• E) social responsibility.

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Definitions:

Expected Inflation

The rate at which general prices of goods and services are anticipated to rise over a specific period.

Actual Inflation

The actual rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Unemployment Rate

The percentage of the labor force that is unemployed and actively seeking employment.

Short-run Phillips Curve

A visual diagram illustrating the short-term inverse correlation between inflation rates and unemployment rates.