The Sunk-Cost Bias Causes Decision Makers to Emphasize Past Investments

question 160

True/False

The sunk-cost bias causes decision makers to emphasize past investments of time and money when deciding whether to continue with a chosen course of action.

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Definitions:

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers pay to fund the state's unemployment insurance.

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Federal Depository Bank

A financial institution where the government keeps its money and manages its financial transactions.