Multiple Choice
Which of the following statements best represents a positive analysis of the significance of the Great Railroad Strike of 1877?
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0. Basic Principles of Economics
Positive and Normative Analysis
Multiple Choice
Which of the following statements applies to the economic model of social responsibility?
A
Firms should prioritize environmental sustainability over profitability.
B
Firms are responsible for solving all social problems regardless of cost.
C
Firms should ignore government regulations if they conflict with profit maximization.
D
Firms should focus primarily on maximizing profits while adhering to legal requirements.
Verified step by step guidance1
Understand the economic model of social responsibility, which suggests that a firm's primary responsibility is to maximize profits while complying with legal and ethical standards.
Recognize that this model does not require firms to prioritize environmental sustainability over profitability or to solve all social problems regardless of cost.
Note that ignoring government regulations contradicts the model, as adherence to laws is a key component of responsible business behavior.
Evaluate each statement against the core principle of the economic model: profit maximization within the boundaries of the law.
Conclude that the statement 'Firms should focus primarily on maximizing profits while adhering to legal requirements' aligns with the economic model of social responsibility.
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