When People Make a Decision to Not Participate in a Program

question 27

Multiple Choice

When people make a decision to not participate in a program unless they actively enroll for it,program participation is:

• A) likely to be higher than if people were automatically enrolled and had to actively opt-out of participating.
• B) likely to be lower than if people were automatically enrolled and had to actively opt-out of participating.
• C) likely to be the same as if people were automatically enrolled and had to actively opt-out of participating.
• D) exclusive, which always makes it more attractive to people.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often appearing as a line item on the income statement.

Notes Payable

Financial obligations or loans evidenced by promissory notes, which the borrower promises to pay back to the lender according to agreed terms.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Liability Reported

The recording of an obligation or debt that a company owes to outside parties in the financial statements.