Which one is an argument in favour of social responsibility of business?
Governments should pay to clean it up
Protecting the environment is too expensive and reduces profits
Increased prices mean increased costs
Using up scarce resources leaves less for future generations and raise prices
An example of a external cost.
Cost of land
Cost of construction
Labour costs
Pollution
How does new hi-tech production methods make business more competitive?
Increasing productivity and lowering average costs
Decreasing productivity and lowering average costs
Increasing productivity and increasing average costs
Decreasing productivity and increasing average costs
An example of a private cost.
Pollution caused by waste products
Health hazards
Money made from the sale of products
The costs paid by the rest of society, other than the business, as a result of a business decision.
External cost
Private cost
Social cost
Total cost
In cost benefit analysis, when will the government probably refuse permission for a project?
When the social benefits is greater than the social costs
When the social benefits is less than the social costs
When the social benefits is equal to the social costs
When there are no social benefits
Which of the following is NOT a disadvantage of new technology?
New machines are expensive
Research and development expensive
Staff retraining expensive
Make new products more competitive
What is an advantage of technological change?
Workers will require training
New products encourage consumers to buy
Expensive to buy and introduced with no certainty that it will succeed
Customers still prefer personal contact
When is a scheme likely to be accepted in cost benefit analysis?
When there is no social costs
Define cost benefit analysis.
The financial gains made by a business as a result of a business decision
The provision of a product or a service to satisfy consumer wants and needs
The income to a business during a period of time from the sale of goods or services
The valuation by a government agency of all external and private costs and benefits resulting from a business decision
