Which of the Following Best Describes the View Taken by Milton

question 4

Multiple Choice

Which of the following best describes the view taken by Milton Friedman in relation to the role of companies?

• A) Companies are an integral part of society, and as such should adopt the highest ethical principles.
• B) Companies, as part of society, should act in the interests of the harmonisation of society and the environment.
• C) Companies should detach themselves from the environment and focus on maximising the benefits to society.
• D) Companies should distance themselves from the community in which they operate and focus solely on maximising the returns to shareholders.

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Definitions:

Price Ceiling

A cap on prices set by the government, limiting the maximum amount that can be charged for goods or services.

Shortage

A market condition where the demand for a product or service exceeds its supply at a particular price.

Excess Demand

A market condition where the quantity demanded of a product exceeds the quantity supplied at a given price.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service.