Heather Is a Full-Time Employee of the Drake Company and Participates

question 30

Multiple Choice

Heather is a full-time employee of the Drake Company and participates in the company's flexible spending plan that is available to all employees. Which of the following is correct?

• A) Heather reduced her salary by $1,200, actually spent $1,500, and received only $1,200 as reimbursement for her medical expenses. Heather's gross income will be reduced by $1,500.
• B) Heather reduced her salary by $1,200, and received only $900 as reimbursement for her actual medical expenses. She is not refunded the $300 remaining balance, but her gross income is reduced by $1,200.
• C) Heather reduced her salary by $1,200, and received only $800 as reimbursement for her medical expenses. She is not refunded the $400. Her gross income is reduced by $800.
• D) Heather reduced her salary by $1,200, and received only $900 as reimbursement for her medical expenses. She forfeits the $300. Her gross income is reduced by $300.
• E) None of these.

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Definitions:

Learned Habits

Behaviors acquired through repetition and reinforcement, becoming automatic responses to specific situations.

Biological Constraints

Biological constraints are limitations on learning that are caused by the biology of the organism, suggesting that some behaviors are inherently more difficult to learn than others due to genetics.

Ivan Pavlov

A Russian physiologist best known for his research in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using knowledge.