The Tendency for People to Persist in Failing Investments to Avert

question 28

Multiple Choice

The tendency for people to persist in failing investments to avert loss,which causes losses to mount,is known as the

• A)endowment effect.
• B)escalation effect.
• C)sunk cost principle.
• D)expectancy theory.

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Definitions:

First-impression Error

is a bias in evaluation or judgment where early information or initial impressions unduly influence someone's perception of another person or situation.

On-the-job Training

A method of professional development where employees acquire skills and knowledge during the course of their regular work activities, often under the guidance of experienced colleagues.

Vestibule Training

A training method where employees are trained in a separate space (a 'vestibule') using the equipment and tools that they will use in their actual work, but within a simulated work environment.

Work-based Program

An educational or training program that combines work experience with learning activities, often aimed at improving employability.