Stan Buys a 1966 Mustang, Which He Plans to Restore

question 98

Multiple Choice

Stan buys a 1966 Mustang, which he plans to restore and sell. He anticipates that the cost of the car and the repairs will be $10,000 and that he can sell it for $13,000. When he has spent $10,000, he discovers he needs to replace the engine, which will cost $4,000. He can sell the car without the new engine for $9,000. What should Stan do?

• A)complete the repairs and sell the car for $13,000
• B)cut his losses and sell the car now for $9,000
• C)never try such an expensive project again
• D)be totally indifferent between finishing the project and selling the car now

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Definitions:

Rovee-Collier

A reference to Carolyn Rovee-Collier, known for her research in infant memory and learning capabilities.

Experiment

A research method in which the researcher adds one variable (called the independent variable) and then observes the effect on another variable (called the dependent variable) in order to learn if the independent variable causes change in the dependent variable.

Memory Session

A period dedicated to memorizing or recalling information from one's past experiences.

Binocular Vision

The ability to focus the two eyes in a coordinated manner in order to see one image.