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:

Readers

Individuals who read or interpret written material, such as books, articles, or digital content.

Decide

To make a choice or conclusion from among several options or pieces of information.

Memo

A written message, typically in a business context, used for internal communication among employees or departments.

Bad News

Bad news refers to information that is undesirable or disappointing to the recipient, similar to a negative message, but often related to personal, professional, or societal contexts.