Which of the Following Best Describes Nonrational Escalation of Commitment

question 1

Multiple Choice

Which of the following best describes nonrational escalation of commitment?

• A)Strong commitment to an idea that was previously chosen.
• B)Commitment to a previous course of action beyond the point prescribed by rational models of decision making.
• C)Continuing with a previously chosen course of action when the potential future benefits outweigh the potential future costs.
• D)Commitment to a previously chosen course of action when the expected value of continuing the project is positive.

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Definitions:

OID

Original Issue Discount; it refers to the difference between the original issue price of a bond and its maturity value, treated as interest for tax purposes.

Series I Savings Bonds

A type of U.S. savings bond designed to protect the value of your cash from inflation.

Qualified Higher Education Expenses

Expenses required for enrollment or attendance at an eligible educational institution, including tuition, fees, books, supplies, and equipment.

AGI

This refers to the measure of income calculated from your gross income and used to determine how much of your income is taxable.