A Sunk Cost Is One That

question 117

Multiple Choice

A sunk cost is one that

• A)changes as the level of output changes in the short run
• B)was paid in the past and will not change regardless of later decisions
• C)should determine the rational course of action in the future
• D)has the most impact on profit-maximizing decisions
• E)influences rational decision makers

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Definitions:

Arcuate Nucleus

A nucleus in the hypothalamus involved in the regulation of many physiological processes, including appetite and fertility.

Modulation

The process of varying a property of a waveform, such as its amplitude or frequency, to encode information.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Expectancy-Value Model

A psychological model that explains how the motivation to perform a behavior is influenced by the expectation of success and the value of the success to the individual.