Which of the Following Statements Is True of the Relationship

question 39

Multiple Choice

Which of the following statements is true of the relationship between social responsibility and economic performance?

• A) The costs of being socially responsible can be offset by a better product or corporate reputation.
• B) Socially responsible companies are guaranteed profitability.
• C) Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance.
• D) There is a big trade-off between social responsibility and economic performance.

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Definitions:

Economic Rent

The excess payment made to or for a factor of production over and above what would be needed to move it to its next best use.

Wage Rate

The standard amount of compensation given to employees per unit of time worked, often expressed as an hourly rate or annual salary.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.

Marginal Revenue Product Curve

A graph that shows the value of the additional output generated by employing one more unit of input, typically labor.