Which of the Following Is a Common Mistake Consumers Commit

question 49

Multiple Choice

Which of the following is a common mistake consumers commit when they make decisions?

• A) They take into account non-monetary opportunity costs but ignore monetary costs.
• B) They are overly pessimistic about their future behaviour.
• C) They fail to ignore sunk costs.
• D) They sometimes value fairness too much.

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Definitions:

New England Merchant

Refers to businessmen in the early American colonial period based in the New England region who were involved in trade and commerce, often engaged in shipping goods across the Atlantic.

Urban Artisan

A skilled worker or craftsman who lives and works in an urban area, often producing handmade goods or providing specialized services.

Assumption of State Debts

A financial policy where the federal government assumes the debts incurred by the states, often to standardize and stabilize the national economy.

Public Securities

Financial instruments issued by governments, such as bonds or treasury bills, to raise funds for public projects or operations.