Which of the Following Is a Common Mistake Made by Consumers

question 150

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:

Over Supplied

A market condition where the quantity of a good or service available exceeds the quantity demanded at the current price, often leading to a surplus and typically pressure on prices to decrease.

Marginal Cost

The rise in expenses for producing one more unit of a product or service.

Efficient Amount

The level of production or consumption that maximizes welfare and minimizes waste within an economy, often used in reference to optimal resource allocation.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is a major component of the carbon cycle.