In the Context of Loss Aversion, Identify the True Statement

question 26

Multiple Choice

In the context of loss aversion, identify the true statement about sunk-cost fallacy.

• A)People ascribe greater value to things they already own when compared with objects owned by someone else.
• B)People disregard prior experiences or failures when making predictions about the possibility of an outcome.
• C)People are reluctant to give up on a venture because of past investment.
• D)People tend to report falsely, after the fact, that they accurately predicted an outcome.

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Definitions:

Verbal Stimuli

Stimuli that involve language or sounds, used often in psychological experiments to assess reactions and cognitive processes in humans.

Mandible

The lower jaw or jawbone, significant in the structure of the face and in the process of chewing.

Trapezius Muscle

A large superficial muscle that extends from the occipital bone to the lower thoracic vertebrae and to the scapular spine, involved in moving the shoulder blade and supporting arm movements.

Intercostal Space

An anatomical term referring to the space located between two ribs, through which nerves and blood vessels run.