An Example of a Sunk Cost Would Be

question 70

Multiple Choice

An example of a sunk cost would be:

• A)the value of a lift ticket you bought and used to ski the whole day.
• B)the value of a lift ticket you bought and used for 1 run before you fell and broke your ankle.
• C)the nonrefundable deposit you put on your vacation rental.
• D)All of these are examples of sunk costs.

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Definitions:

Market Basket

A fixed list of items used to track the progress of inflation in an economy or to compare prices over time.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess changes in the cost of living.

Standard of Living

The extent of financial well-being, luxury, material objects, and fundamental requirements available to an identified socioeconomic class or geographical zone.

CPI

This index measures the average prices across a specified set of consumer goods and services, weighted accordingly, to serve as a benchmark for inflation, known as the Consumer Price Index.