Which of the Following Explanations,if True,for the Observation That 80

question 7

Multiple Choice

Which of the following explanations,if true,for the observation that 80% of your company's employees choose not to opt into the company's optional retirement plan would be the LEAST consistent with standard economic theory?

• A) Company-sponsored retirement plans tend to have lower-than-average returns over the long run.
• B) Company-sponsored retirement plans tend to have higher-than-average costs compared to other retirement saving instruments.
• C) When confronted with alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default.
• D) Across all employers, the average rate of retirement plan enrollment tends to be about 20%, which is consistent with the low demand for retirement plans.

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Definitions:

Drinking

The act of consuming liquids, often specifically referring to the intake of alcoholic beverages.

Substance Use

The consumption of drugs, alcohol, or other chemical substances, which can range from moderate use to dependency.

Peer Behavior

The actions and conduct exhibited by individuals within a peer group, which can influence the behavior of others within the group.

Alcohol Abuse

The harmful consumption of alcohol substances to the degree that it affects one's health, social, or economic functioning.