Many People Choose to Submit Payroll Forms to Their Employers

question 11

Multiple Choice

Many people choose to submit payroll forms to their employers that result in more income taxes being withheld than these employees actually will owe in income taxes.According to behavioral scientists,the most likely explanation for this behavior is that:

• A) The IRS, in paying tax refunds, pays generous interest rates on excess amounts withheld from taxpayers' earnings during the year
• B) Over-withheld taxes are viewed favorably by credit reporting agencies, which enhances taxpayers' self-esteem
• C) The principle of loss aversion
• D) The principle of moral reminders

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Definitions:

Familiar

Well known from long or close association, easily recognized or understood based on prior experience.

Unfamiliar

Not known or recognized, often referring to concepts, words, or environments that are not understood due to a lack of experience.

Skeptical

Having doubts or reservations about the truth or reliability of something without sufficient evidence or proof.

Hostile

Exhibiting or marked by unfriendliness or opposition, often creating a challenging or adversarial environment.