Sunk Costs

question 59

Multiple Choice

Sunk costs:

• A) are an essential part of economic decision making.
• B) are irrelevant to economic decision making.
• C) should be considered, but only when marginal cost is less than marginal benefit.
• D) should be considered only when there is no information about marginal cost and marginal benefit.

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Definitions:

Bad Events

Unfavorable or negative occurrences that can impact an individual's mental or emotional well-being.

Optimistic Explanatory Style

A cognitive approach where individuals attribute positive events to their own qualities and negative events to external factors, contributing to resilience and well-being.

Negative Events

Undesirable or harmful occurrences that can cause stress, sadness, or trauma, negatively impacting an individual's mental and emotional well-being.

Temporary

Lasting for only a limited period; not permanent.