The Government Has Been Trying to Decide Whether or Not

question 75

Multiple Choice

The Government has been trying to decide whether or not to purchase any of the new, advanced icebreakers it has developed. One of the arguments in favour of purchasing the ships is that since so much money has been spent on their development it would be a waste of money not to buy them now. What is the major problem with this argument?

• A) It includes erosion costs in the decision-making process.
• B) It includes sunk costs in the decision-making process.
• C) It includes opportunity costs in the decision-making process.
• D) It includes net working capital changes in the decision-making process.
• E) It includes financing costs in the decision-making process.

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Definitions:

Autotransfusion

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Body Mass Index

A numerical computation that compares a person's weight and height to determine if they are underweight, normal weight, overweight, or obese.

Malnutrition

A condition resulting from a diet lacking in proper nutrients or the body's inability to absorb these nutrients.

Mechanical Soft Diet

A diet that consists of foods easy to chew and swallow, often used for individuals with difficulty in eating.