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:

Quota

A regulation enforced by authorities that caps the quantity or financial worth of merchandise allowed to be imported or exported within a given timeframe.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Illegal Activities

actions that are forbidden by law and subject to criminal penalties.

Missed Opportunities

Potential benefits or gains that are forfeited when a choice is made over alternative options.