The belief that if you paid more for something it must be more valuable to you is known as:
A. projection bias.
B. the sunk cost fallacy.
C. the hot-hand fallacy.
D. narrow framing.
B. the sunk cost fallacy.
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On what kind of income is our tax system based?
A) nominal B) adjusted C) real D) inflationary
Is the profit-maximizing price-taking firm able to mark up price above the marginal costs of production at the profit-maximizing level of output? Why or why not?
What will be an ideal response?
Banks that operate under Islamic law are no longer considered intermediaries between borrowers and lenders because they are not allowed to charge interest
a. True b. False Indicate whether the statement is true or false
Per capita real GDP is of limited use as a measure of economic well being for all the following reasons, except:
a. it says nothing about the quality of the environment. b. it does not reflect the degree of personal freedom in a society. c. it is not adjusted for changes in leisure time. d. it is not adjusted for changes in the rate of inflation. e. it says nothing about the distribution of income.