Facing Budget Cuts, the Pentagon Announced Its Decision to Close

question 376

Multiple Choice

Facing budget cuts, the Pentagon announced its decision to close a local army base. The congressman from the district in which the base is located argued against closing it, saying that the $1.3 billion dollars spent to build it would be wasted if it was closed. This argument is an example of

• A) a framing bias.
• B) altruism.
• C) a sunk cost fallacy.
• D) overconfidence.

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