Which of the Following Is Probably an Example of the Irrational

question 60

Multiple Choice

Which of the following is probably an example of the irrational treatment of sunk costs?

• A)Jim studied the computer output for two hours before the big meeting, but he couldn't use the information.Before the next meeting he studied the output for four hours.
• B)Mary obtained much more information than she needed in order to make a decision on the leasing arrangement.
• C)Janine had her travel agent book two flights for her to New York so that she was certain not to miss the big meeting.
• D)The pilot feared landing on the remote airstrip because there had been an accident there the day before.
• E)The company president decided to cancel the expansion project even though construction work had already begun.

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other critical terms of the credit agreement.

Identity Theft

Identity theft is the fraudulent acquisition and use of someone's private identifying information, typically for financial gain.

FTC

Stands for the Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and maintaining competition.

Cosign

To sign a legal document alongside another person, taking joint responsibility for the obligation the document entails, such as a loan.