Stephen Is Restoring a Car and Has Already Spent $4,000

question 121

Multiple Choice

Stephen is restoring a car and has already spent $4,000 on the restoration.He expects to be able to sell the car for $5800.Stephen discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers.He could also sell the car now,without completing the additional work,for $3,800.What should he do?

• A)He should sell the car now for $3,800.
• B)He should keep the car since it wouldn't be rational to spend $6,400 restoring a car and then sell it for only $5,800.
• C)He should complete the additional work and sell the car for $5,800.
• D)It does not matter which action he takes since the outcome will be the same either way.

Discuss the potential effects of discrimination on firm costs and labor market efficiency.

Understand the role and impact of personal characteristics and societal biases on labor market outcomes.

Understand the economic implications of labor market discrimination.

Recognize the factors that can lead to wage differentials in a competitive labor market.

---

Definitions:

Stereotyping

The act of categorizing individuals or groups into oversimplified and generalized traits or characteristics.

Temper Tantrum

Emotional outburst, usually in children, characterized by yelling, crying, and sometimes physical behavior due to frustration or anger.

Type 1 Diabetes

An autoimmune condition where the pancreas produces little or no insulin, leading to high blood sugar levels and requiring lifelong insulin therapy.

Nursing Diagnosis

A clinical judgment about individual, family, or community responses to actual and potential health problems or life processes, providing the basis for selecting nursing interventions.