US Employees Who Formerly Wanted to Defer Part of Their

question 59

Multiple Choice

U.S. employees who formerly wanted to defer part of their compensation to a 401(k) retirement plan typically had to lower their take-home pay as they "opted in" to the plan. Now companies are being encouraged to enroll their employees in the 401(k) plan automatically while allowing them to choose to raise their take-home pay by "opting-out" of the 401(k) plan. Under the "opting out" rather than "opt-in" system, enrollments in 401(k) plans soared. This best illustrates the impact of

• A) overconfidence.
• B) a process simulation.
• C) framing.
• D) belief perseverance.

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Definitions:

Age Appropriate

Activities, behaviors, or materials that are suitable for a person's developmental stage or chronological age.

Hospitalized

The condition of being admitted to a hospital for treatment, observation, or other medical care, typically requiring an overnight stay.

Playroom Activities

Structured or free-play activities designed for children, often within therapeutic or educational settings.

Cognitive Developmental Theory

A theory that suggests human beings develop cognitive abilities through stages, emphasizing how people think and understand the world over time.