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

---

Definitions:

Arbitrator's Bias

A situation in which an arbitrator, who is supposed to act as an impartial third-party decision-maker in a dispute resolution process, shows unfair bias towards one of the parties.

Counterclaim

A claim made by the defendant against the plaintiff that is filed along with the defendant’s answer.

Negligence

Neglecting to uphold the level of care that a reasonably careful individual would have maintained under comparable circumstances, resulting in injury or damage.

Criminal Action

Legal proceedings taken against an individual or entity accused of violating the law, aiming to enforce social control and administer justice.