The Government Has Been Trying to Decide Whether or Not

question 73

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:

Role Ambiguity

A situation in which the expectations associated with a role are unclear, leading to confusion and possibly stress.

Institutionalism

Institutionalism refers to an approach in social science that emphasizes the role of institutions in shaping social behavior, outcomes, and processes.

Psychological Apathy

A state of indifference where an individual shows lack of interest, enthusiasm, or concern towards emotional, social, or physical life.

Daily Life

The routine or regular activities and experiences that make up an individual's everyday existence.