Joe Preorders a Nonrefundable Movie Ticket

question 23

Multiple Choice

Joe preorders a nonrefundable movie ticket. He then reads a number of reviews of the movie in question that make him realise that he will not enjoy it. He goes to see it anyway, rationalising that otherwise his money will have been wasted. Is Joe succumbing to the Sunk Cost Fallacy, and why?

• A) No, because he incurred no further costs by going to see the movie.
• B) Yes, since he invested a valuable asset, his time, in a project based on its previous costs.
• C) No, because going to see the movie means that the product of his initial investment was realised as originally planned.
• D) No, because the cost of the movie was not recoverable and would have been lost whatever action he took.

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Definitions:

Pancreas

A glandular organ located in the abdomen that plays a crucial role in digestion and insulin production.

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream to regulate various bodily functions.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response during perceived threats.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.