Which of the Following Is a Common Mistake Made by Consumers

question 151

Multiple Choice

Which of the following is a common mistake made by consumers?

• A) taking into account the implicit costs of an activity
• B) ignoring sunk costs
• C) being overly optimistic about their future behaviour
• D) being overly pessimistic about their future behaviour

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Definitions:

Interest

Money paid at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Equivalent Value

The amount that represents an equal worth or utility between two different items, currencies, or financial instruments, considering various factors.

Rate of Return

The percentage of profit or loss on an investment relative to its cost, indicative of its financial performance over a period.

Equivalent Value

The worth of one item or service in terms of another, indicating how much of one thing is considered equal in value to another.