The Reason Why Hotels in Cairns Operated at a Loss

question 27

Multiple Choice

The reason why hotels in Cairns operated at a loss rather than shut down when tourism declined sharply is:

• A)the government offered to subsidise the firms until they were profitable again
• B)the hotels had sunk costs that could not be recovered if they had closed
• C)the banks that financed the hotels wrote off the debt rather than insist it got paid back
• D)tourists donated money to the hotels to keep them in operation

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Definitions:

Cognitive Dissonance

A psychological phenomenon where there is discomfort or mental conflict due to holding contradictory beliefs, values, or attitudes.

Positive Feedback

A form of evaluation or response that emphasizes what was done well, reinforcing the behavior that produced positive outcomes.

Cognitive Dissonance

Cognitive dissonance is a psychological phenomenon where a person experiences mental discomfort due to holding conflicting beliefs, values, or attitudes simultaneously.

Role-Play

A technique involving acting out roles or scenarios, often used in education, training, therapy, or conflict resolution to explore situations and behaviors.