Which of the Following Is an Example of Behavior That

question 35

Multiple Choice

Which of the following is an example of behavior that is not rational?

• A)buying stocks after stock prices have declined
• B)buying stocks after stock prices have risen
• C)a significantly higher enrollment in 401K plans if people are automatically enrolled rather than having the option of signing up on their own
• D)enrollment in 401K plans during a bear market

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue source for most businesses.

Operating Income

Earnings from a company's main business activities, excluding expenses like interest and taxes.

Operating Expenses

Operating expenses are the costs associated with running a company's core business operations, excluding the cost of goods sold, such as rent, utilities, and payroll.

Merchandising Business

A type of business that purchases goods and sells them at a higher price without changing their form.