The Tendency for People to Behave Differently When They Know

question 64

Multiple Choice

The tendency for people to behave differently when they know they are being studied is known as the

• A) Hawthorne effect.
• B) Taylor effect.
• C) Type II effect.
• D) induced motivation effect.

---

Definitions:

Defined Contribution Plan

A retirement plan where contributions are defined, but the eventual payout depends on the investment's success.

Investment Risk

The possibility that an investment's actual return will differ from the expected return, including the potential loss of some or all of the original investment.

Global Consumption Smoothing

An economic principle that suggests individuals can optimize their lifetime well-being by spreading consumption over their lifetime, influencing savings and investments.

Tax Shelters

Tax Shelters are investment options or financial strategies used to minimize or avoid taxes, taking advantage of legal provisions to reduce tax liabilities.