Whether Workers Must "Opt Into" or "Opt Out Of" a Retirement

question 52

Multiple Choice

Whether workers must "opt into" or "opt out of" a retirement savings plan ______ make a difference if workers are rational optimizers and ______ make a difference if workers' behavior exhibits inertia.

• A) would; would
• B) would not; would not
• C) would; would not
• D) would not; would

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Definitions:

Earnings per Share

A financial measurement that determines the amount of a company's earnings distributed to each share of its common stock.

Preferred Dividends

Preferred dividends are payments made to holders of preferred shares in a company, typically at a fixed rate, and have priority over common stock dividends in terms of distribution.

Earnings per Share

A company's profit divided by its number of common outstanding shares.

Weighted-average Shares

A calculation used in financial reporting that adjusts the number of outstanding shares for their time outstanding during the calculation period.