The Human Tendency to Judge Options According to the Size

question 2

Multiple Choice

The human tendency to judge options according to the size of previous investments rather than the size of the expected return is called:

• A) economic loss.
• B) the sunk-cost fallacy.
• C) groupthink.
• D) a framing error.

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Definitions:

"All Fours"

A situation or argument that is directly comparable or applicable to another, often in legal contexts.

Checklist

A list of items or tasks that need to be reviewed, completed, or checked off.

Issues Researched

Topics or problems that have been systematically explored to gain understanding or find answers.

Restatements of the Law

A set of treatises on legal subjects that clarify, organize, and simplify the law, which courts widely respect but do not consider binding.