Which of the Following Could Be TRUE Given the Relationship

question 17

Multiple Choice

Which of the following could be TRUE given the relationship between a firm's layoffs and its payroll tax for unemployment insurance relative to those of an average firm?

• A) Firms with twice as many layoffs pay twice as much in payroll taxes.
• B) Firms with twice as many layoffs relative to the average firm pay 50% less in payroll taxes than the average firm.
• C) Firms with twice as many layoffs pay 40% more in payroll taxes than the average firm.
• D) Firms with twice as many layoffs pay more than twice as much in payroll taxes.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behavior.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Bay of Pigs

The site of a failed invasion of Cuba in 1961, which was sponsored by the United States and intended to overthrow Fidel Castro.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.