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.
Licenses to pollute up to a certain level.
Penalties
Laws
Pollution permits
Pressure groups
How does new hi-tech production methods make business more competitive?
Increasing productivity & lowering average costs
Decreasing productivity & lowering average costs
Increasing productivity & increasing average costs
Decreasing productivity & increasing average costs
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
If business damages environment, which of the following could take action to harm the firms’ reputation and sales?
Court
Political parties
None of the above
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
Which one of the following given below is not an external constraint of business?
Technological change: New products.
Technological change: New production processes.
Employees problems
Environmental issues.
What does new products encourage consumers to do?
Buy more often
Buy less often
Sell more often
Sell less often
An example of a external cost.
Cost of land
Cost of construction
Labour costs
Pollution
An example of a private cost.
Pollution caused by waste products
Health hazards
Money made from the sale of products
