Rick Finds a Great Internet Deal on an All-Inclusive Vacation

question 65

Multiple Choice

Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200,and immediately places a $1000 nonrefundable deposit on it.He later learns that the dates he planned to go are right in the middle of hurricane season,and it is likely to be miserable and potentially dangerous weather the entire time.Rick decides he cannot waste the $1000 and takes the trip anyway.While sitting in the rain,miserable,Rick realizes:

• A) he fell victim to the sunk-cost fallacy and should have ignored the fact that the $1000 was gone.
• B) he fell victim to the implicit-cost fallacy and should have ignored the fact that the $1000 was gone.
• C) he fell victim to the fungibility-fallacy and should not have gone on the trip.
• D) going on the trip was a utility-minimizing experience.

---

Definitions:

Self-reinforcement

The process by which individuals reward themselves for reaching certain goals or exhibiting desirable behaviors, thus encouraging repeated action.

Personal Standards

Refers to the individual benchmarks or expectations one sets for themselves in various aspects of their lives, influencing behavior and self-assessment.

Achievement

The accomplishment of an aim or purpose, often recognized as the result of effort, skill, or courage.

Attentional Processes

The cognitive functions involved in selecting and focusing on specific stimuli while ignoring others.