A Sunk Cost Is Described as Which of the Following

question 267

Multiple Choice

A sunk cost is described as which of the following?

• A)One that is relevant to a decision because it changes depending on the alternative course of action selected
• B)A historical cost that is always irrelevant
• C)An outlay expected to be incurred in the future
• D)A historical cost that may be relevant

---

Definitions:

Reciprocity Norm

A social norm that dictates that we should repay, in kind, what another person has provided us, promoting the exchange of goods, services, and favors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Defensive Attribution

A psychological process by which individuals tend to ascribe greater blame to the victims of misfortune for their own victimization when they feel threatened by the likelihood of a similar event happening to them.