A Sunk Cost Is One That

question 304

Multiple Choice

A sunk cost is one that

• A)changes as the level of output changes in the short run.
• B)was paid in the past and will not change regardless of the present decision.
• C)should determine the rational course of action in the future.
• D)has the most impact on profit-making decisions.

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Definitions:

n Ach

Need for achievement, a motivational term in psychology that represents an individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Work Motivation

The conditions and processes responsible for the arousal, direction, magnitude, and maintenance of effort of workers on the job.

Performance Enhancement

Techniques or substances used to improve any form of activity performance in humans.

Yerkes-Dodson Law

A psychological principle stating that performance increases with physiological or mental arousal, but only up to a point, after which performance begins to decrease.