Which of the Following Defines or Describes Sunk Cost Fallacy

question 108

Multiple Choice

Which of the following defines or describes sunk cost fallacy?

• A) The act of owning a good increases its value, so the owner must be paid more to give up the good than she would have been willing to pay for it in the first place.
• B) It is a way to frame a bias in which people treat their current and future assets as separable, nontransferable accounts; for example, having mental savings accounts for entertainment, retirement, and other expenditures.
• C) It is the mistake of allowing costs that cannot be recovered to affect decisions.
• D) It is the act of placing too much emphasis on the immediate present than even the near future when making decisions.

---

Definitions:

Naughty

Behavior that is disobedient or mischievous, often used to describe children who do not follow rules or norms.

Babysitter

An individual, often a teenager or young adult, who temporarily cares for children on behalf of the children's parents or guardians.

Associating Bedtime

The practice of linking specific routines or activities with the time of going to sleep to promote better sleep habits.

Avoiding

refers to the behavioral strategy of staying away from certain situations, tasks, or individuals to prevent discomfort or conflict.