Escalation of Commitment Bias Occurs When Individuals Continue on a Failing

question 52

True/False

Escalation of commitment bias occurs when individuals continue on a failing course of action after information reveals this may be a poor path to follow.

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Definitions:

Overgrazing

The degradation of a grazing land, resulting from livestock grazing at a rate higher than the capacity of the land to regenerate.

Production Possibilities Curve

A graph that shows the combinations of two goods that can be produced using all available resources and technology efficiently.

International Specialization

The economic strategy where countries focus on the production and export of goods and services that they can produce most efficiently.

Full Employment

An economic condition where all available labor resources are being used in the most efficient way possible, typically signifying a very low unemployment rate.