You Have Just Purchased a Car for $20,000 and Learned

question 20

Multiple Choice

You have just purchased a car for $20,000 and learned that you have failed the driving test.Your brother offered to purchase the car from you for $19,000 and you have accepted the offer.The $1,000 loss represents

• A) the marginal cost of the car.
• B) the sunk cost of a bad decision.
• C) the average cost of the car.
• D) the marginal benefit of getting rid of the car.
• E) the benefit of the car.

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Definitions:

Freud

Freud, specifically Sigmund Freud, was an Austrian neurologist who founded psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Rational

Based on reason or logic; capable of cogent reasoning.

Free Will

The concept that humans have the ability to make choices that are not predetermined by prior causes or divine intervention.

Personality Psychologists

Scientists who study the patterns of thoughts, feelings, and behaviors that make a person unique, focusing on understanding individual differences.