#19 - Global Reference, Must Be True, Subject Perspective

[Administrator]

Complete Question Explanation

The correct answer choice is (B).

Answer choice (A):

Answer choice (B): This is the correct answer choice.

Answer choice (C):

Answer choice (D):

Answer choice (E):

This explanation is still in progress. Please post any questions below!

[sherrilynm]

I don't understand why B is the best answer - where does it say that the economists believe the PRIMARY goal should be maximizing profits? Thanks!

[Francis O'Rourke]

Answer choice (B) states that economists would agree that CEO's of the specified corporations "should make decisions based primarily on maximizing profits." Evidence for economists agreement with this statement can be found in the first and the third paragraph.

In lines 6-12, economists are described as being in agreement with the "basic corporate practice of making decisions based on what will maximize profits." This does not single out CEO's of non-charitable corporations however, so we will need more evidence.

The third paragraph gives us two types of CEO's. lines 23- 27 tell us that economists believe that CEO's who work for the owners of a company have a "primary interest" in the protection of profits, and that they are bound to seek profits as a condition of their employment.

In cases where CEOs are also the owner of a company, which is what we are interested in to prove answer choice (B), economists also believe that these individuals must make decisions based on profit maximization. Lines 30-34 state that the economist's view is that these CEO's "should still work to maximize profits" regardless of whether these CEO's have other goals which seem to conflict with profit maximization.