Cindy Has Pumped Over $850,000 into a Small Business That

question 104

Multiple Choice

Cindy has pumped over $850,000 into a small business that has consistently lost money every year it has been open.She reasons that she has to continue investing time and money in her business because she's "already put so much into it" (instead of selling the business and cutting her losses) .Cindy's reasoning illustrates:

• A)rational economic theory.
• B)the conjunction fallacy.
• C)the sunk-cost fallacy.
• D)the law of demand.

---

Definitions:

Jackson

Refers to Andrew Jackson, the seventh President of the United States, known for his populist policies and significant actions such as the Indian Removal Act.

Erie Canal

A historic canal in New York, opened in 1825, playing a crucial role in the westward expansion and economic growth of the United States by linking the Great Lakes with the Atlantic Ocean.

Global Perception

The way a particular issue, entity, or concept is viewed and understood by people around the world, influenced by cultural, social, and individual factors.

Mill Girls

Young women who worked in the textile mills during the Industrial Revolution, particularly noted in the 19th century in the United States, often to support their families under challenging conditions.