The Government Is Considering a Mandatory Savings Program That Forces

question 19

Multiple Choice

The government is considering a mandatory savings program that forces people to save 8% of their income each year for retirement.What behavioral biases might be used as a justification for such a program? (Choose all that apply.)

• A) limited cognitive ability, preventing people from being able to accurately estimate how much an investment early in one's career will grow.
• B) limited willpower, preventing people from being able to give up the pleasure of current consumption for the benefits of consumption later in retirement.
• C) limited commitment power, leading the government to use the funds for current expenditures.
• D) risk aversion, leading people to consume now rather than wait until the uncertain future.

Comprehend what observational research entails, including its purposes and applications.

Analyze various research methods for assessing consumer behavior and their respective strengths and weaknesses.

Recognize the limitations of survey research in capturing detailed consumer responses.

Grasp the objectives behind conducting primary research.

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Definitions:

Organizational Structure

Describes how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims.

Storage Device

Hardware used to record and retain digital information or data for a period of time, such as hard drives, solid-state drives, and USB flash drives.

Libraries

Collections of sources, resources, and services, and the structures in which they are housed; dedicated to information needs of its users.

Desktops

Personal computers designed for regular use at a single location on or near a desk due to their size and power requirements.