Cindy's reasoning illustrates: <u>sunk-cost fallacy</u>.
<u>Explanation</u>:
The term fallacy refers to failure in reasoning and mistaken belief. A sunk cost is a cost incurred in the business that cannot be recovered. The cost invested in the business and lost is referred as sunk cost.
Sunk cost fallacy gives false hope to the people about their investment plan in business and makes them take wrong decision.
In the above scenario, Cindy invested $850,000 into the business. She faced loss continuously and lost her money. But she stills thinks on investing in her business instead of selling it.
Answer:
A
Explanation:
To calculate the adult population, we simply make use of the data available from the BLS.
We can simply make the calculations by adding the number of employed Adult Americans to the number of unemployed adult Americans.
We simply do not have any business with the number not in labor force because they are actually part of those that are employed but are not just in the labor force.
The adult population is thus:
143,929,000 + 11,460,000 =155,389,000
Answer:
The minimum wage creates unemployment among young and unskilled workers.
If the price of a product in a market decreased, other things equal, quantity demanded will increase.
There is a tradeoff between inflation and unemployment in the short run.
If consumer income increases, other things equal, the demand for automobiles will increase
If interest rates increase, investment will decrease.
Explanation:
Positive statement is objective and statements are usually based on facts and economic theory. They can be tested.
It is a known fact that the higher the minimum wage, the lower the demand for labour and the higher the unemployment rate. this is because price varies inversely with demand
a tradeoff between inflation and unemployment in the short run is known as the Phillips curve
Normative statement is based value judgements, opinions and perspectives. For example, the statement - social welfare spending in Sweden occupies too large a portion of the national budget - is based on opinion. To some the expenditure might be even too small. There is no economic theory that can be used to determine if this expenditure is too large or small
A) increase the efficiency of gift-giving because they allow the recipient to consume goods that provide greater utility and transfer away those goods that are less satisfying.
Utility is the satisfaction that a consumer gets from a good or service, and picking the items that they want themselves provides the best efficiency of choosing goods.
Because of its highly efficient and low-cost distribution system, walmart has a <u>"Sustainable competitive" </u>advantage over kmart.
Sustainable competitive advantages are required for an organization to flourish in todays worldwide condition. Value investors look for organizations that are deals. Keeping in mind the end goal to abstain from acquiring an esteem trap one of the variables we scan for is sustainable competitive advantages.
Without at least one sustainable competitive advantages an organization will most likely be unable to recoup from whatever made the stock turn into a deal. We just need to purchase the loads of organizations that are genuine esteem ventures, not esteem traps. As it were, we need to purchase stocks exchanging beneath their inborn esteem and will develop income for investors.
