In a Comparison of Pseudopsychologies and Valid Psychological Principles,which of the Following

question 27

Multiple Choice

In a comparison of pseudopsychologies and valid psychological principles,which of the following statements is FALSE?

• A) Pseudopsychologies are more of a nuisance and rarely do any harm.
• B) Valid psychological principles are based on observation and evidence, not opinions.
• C) Astrology's popularity shows that many people have difficulty separating valid psychology from systems that seem valid but are not.
• D) The pseudopsychology of graphology has been used to determine who is hired, given bank credit, or selected for juries.

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Definitions:

At-risk Rules

IRS rules limiting the amount of deductible losses from business or income-producing activity based on the taxpayer's financial stake in the activity.

Passive Loss Rules

IRS regulations that prevent investors from offsetting income with losses from passive activities unless they directly participate in them.

Disallowed Loss

A loss that cannot be deducted for tax purposes, often because it does not meet specific criteria set by tax authorities.

Passive Income

Income generated from ventures in which an individual is not actively involved.