Which of the Following Is an Example of Sunk Costs

question 79

Multiple Choice

Which of the following is an example of sunk costs?

• A) wages to security staffs
• B) cost of purchasing raw materials
• C) cost of an alternative investment
• D) wages payable to skilled laborers to make a product

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Definitions:

Radical

Describes ideas, actions, or individuals that advocate for thorough or complete social or political reform.

Conservative

A political and social philosophy promoting traditional institutions in the context of culture and civilization, emphasizing stability, continuity, and a cautious approach to change.

American System

An economic plan that played a significant role in American policy during the first half of the 19th century, advocating for a strong role for federal government in the economy, including tariff protection, national banking, and internal improvements.

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces, typically responsible for the country's foreign policy, defense, and national laws.