Which one of the following decisions most clearly reflects a lack of understanding of the concept of sunk costs?
a. You pay to have your car towed back to the repair shop because it was not fixed properly the first time.
b. You decide to get a master's degree because you cannot find a job in the field in which you majored.
c. You decide to purchase a piece of machinery for your business that will eliminate three employees' positions.
d. You study eight hours for a final exam even though there is no way now that you can pass the course.
D
You might also like to view...
If the U.S. dollar decreases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will shift the aggregate demand curve to the right. C) This will move the economy up along a stationary aggregate demand curve. D) This will shift the aggregate demand curve to the left.
Is Water a Free Good?
- Is water a free good or a scarce good? Why?
- Why would a higher price for water reduce the likelihood of a future water shortage?
What is the "price" commonly called in the labor market?
You cause a fire insurance company to face a moral hazard problem when you take ________ you buy fire insurance from the company.
A. fewer precautions to prevent fires before B. fewer precautions to prevent fires after C. more precautions to prevent fires after D. the same precautions to prevent fires before and after