Shannon Feels Miserable in Her Marriage but Refuses to Consider

question 66

Multiple Choice

Shannon feels miserable in her marriage but refuses to consider getting a divorce; she feels that a divorce would completely waste all of the hard work she has put into making the marriage work for 20 years. Shannon's line of reasoning best illustrates the:

• A)sunk-cost fallacy.
• B)conjunction fallacy.
• C)problem of codependent probabilities.
• D)family resemblance bias.

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Definitions:

Taxes on Labor

Financial charges imposed by governments on workers' income, salaries, and wages.

Elderly

Individuals who are significantly beyond the usual age for retirement, often implying an age at which they receive certain societal or economic benefits like pensions.

Deadweight Loss

An economic inefficiency arising when there's a failure to attain or an impossibility of attaining equilibrium for a particular good or service.

Taxes on Labor

Refers to taxes imposed on wages or salaries earned, impacting the net income of employees.