Evidence from Studies of Workers' Choices on Whether to Participate

question 121

Multiple Choice

Evidence from studies of workers' choices on whether to participate in 401(k) plans suggests that the workers' behavior appears to exhibit

• A)indifference.
• B)ignorance.
• C)inertia.
• D)indecision.

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Definitions:

Utility

The satisfaction or pleasure that a consumer derives from consuming a good or service.

Income

The total amount of money received by an individual or generated by an entity, typically on a regular basis, from various sources such as wages, investments, or business ventures.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Price Fall

A reduction in the market price of a good or service, which can influence consumer behavior and economic conditions.