Which of the Following Is a Common Mistake Made by Consumers

question 158

Multiple Choice

Which of the following is a common mistake made by consumers?

• A)taking into account the implicit costs of an activity
• B)ignoring sunk costs
• C)being overly optimistic about their future behavior
• D)being overly pessimistic about their future behavior

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Definitions:

Budget Constraint

A representation of all the combinations of goods and services a consumer can afford, given their income and the prices of goods.

Bell Pepper

A type of sweet pepper that comes in various colors including red, green, and yellow, often used in cooking for its mild flavor.

Black Beans

A type of legume that is dark in color and rich in protein, often used in various cuisines around the world for their nutritional benefits and versatile uses in cooking.

Budget Constraint

The limitations on the consumption choices of an individual or organization due to limited resources or income.