Final answer:
The false statement is that the allure of psychology is limited to academic and research settings with no real-world applications. Psychology has broad real-world applications across various sectors.
Step-by-step explanation:
The false statement in the question 'All of the following statements about the lure of psychology are true except one. Which statement is FALSE?' is option C: 'The lure of psychology is limited to academic and research settings and has no real-world applications.' This statement is incorrect as psychology has extensive real-world applications in various domains such as clinical, industrial-organizational, health, and forensic settings, among others.
Psychology is indeed a diverse field that studies behavior, cognition, emotion, and different mental processes (Statement B), and it is true that many are drawn to the field because it provides deeper insights into understanding themselves and others (Statement D). Also, the appeal of psychology as a subject refers to its attractiveness and the interest it generates among individuals (Statement A).