Which of the Following Is True of Behavioral Economics

question 11

Multiple Choice

Which of the following is true of behavioral economics?

• A) It uses insights solely from economics and mathematics.
• B) It shows that people always behave rationally.
• C) It finds that people behave in a predictable manner.
• D) It indicates that people invariably act in their best interests.
• E) It draws insights primarily from sociology.

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Definitions:

Approving The Payroll

The process of verifying the accuracy of employees' pay before distribution.

Payroll Records

Documentation related to employees’ salaries, wages, bonuses, net pay, and deductions, essential for financial and legal purposes.

FICA Taxes Payable

The portion of FICA taxes that an employer needs to remit to the government, representing withheld employee taxes and the employer's contributions.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, often considered an operating expense.