The Mistaken Belief That If Money, Time, or Effort That

question 63

Multiple Choice

The mistaken belief that if money, time, or effort that cannot be recovered has already been invested in some endeavor, more should be invested in an effort to reach the goal is called _____.

• A) hypothetical thinking
• B) sunk cost fallacy
• C) base rate neglect
• D) concrete operational thinking

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Definitions:

Production Possibility Curve

A graphical representation showing the maximum combination of goods and services that can be produced with a given set of resources and technology.

Comparative Advantage

The aptitude of any individual, corporation, or country for producing a good or offering a service at an opportunity cost that is reduced in comparison to that of the competition.

Specialization

The process of focusing resources on the activities that lead to the greatest efficiency and output in production or services.

Nations

Significant populations sharing a common ancestry, historical background, cultural practices, or language, living together in a specific nation or region.