Sunk Cost

Sunk Cost is always about money

• True

• False

You can't reclaim a sunk cost.

• True

• False

Once you've spent your time, energy, or _____, there's no getting it back.

If you're not sure if you're being affected by the sunk cost fallacy,

• search on Google and let AI tell you whether you are or not.

• keep doing what you're doing and see if things will work out.

• try to forget about the past while asking yourself if you'd invest starting right now.

• seek counsel from those you trust and respect.

• Both C and D

What is an example of NOT understanding sunk costs? (2 answers)

• Buying a second Big Mac and eating it.

• Cleaning your plate, even though you are not hungry anymore, because there are "starving children in Africa."

• Buying a more expensive prom dress because it will make you look nicer.

• Finishing a movie you rented on Amazon because it expires in a few hours, even though it's a boring movie.

If a scalper offers you $500 for a concert ticket you paid $100 for, and you DON'T accept his offer, then

• you made a really poor business decision.

• you don't understand economics.

• that $100 ticket is now worth $500.

When you are eating at a restaurant, and you are full, and can't take the food home, you should

• finish the food because of the starving babies in Africa

• clean your plate because it is disrespectful not to.

• stop eating