Your Expected Gain from Cheating Is $600

question 10

Multiple Choice

Your expected gain from cheating is $600.The expected financial penalty from cheating is $300 and the expected probability of your cheating being detected is 25%.You also will experience a loss of self-esteem that has an estimated value to you of $500,whether or not your cheating is detected.You are likely to:

• A) Cheat, due to the copycat effect
• B) Not cheat, due to moral compartmentalization
• C) Cheat, applying the principles expressed by the Becker Rational Model
• D) Not cheat because cheating would be irrational

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Definitions:

Owned

Having possession or legal right over something.

Installment Method

A method used in taxation allowing the recognition of income over a period of years when payment from a sale of property is received in installments.

Section 179 Deduction

A tax deduction that allows businesses to deduct the full purchase price of qualifying assets financed during the tax year.

Contract Price

The total monetary amount agreed upon by the parties involved in a contract for the exchange of goods, services, or property.