Question

Marci has just finished the prerequisites needed to enter a nursing program in the fall, but she realizes that she no longer wants to major in or pursue a career in nursing. She decides that she will continue on this path anyway, because she doesn't want all the time and money she spent on the prerequisite courses to be wasted. This demonstrates the _____.

Answer 1

Answer: Sunk Cost fallacy

Explanation:

The sunk cost can be defined as the cost that has already been incurred and cannot be refunded back. It is in contrasted to the prospective costs which are the costs of future and that can be saved if any action is needed.

The economist argue that the sunk cost has nothing to do with the future rational decision making.

The example of such situation is fees which is once spent is generally not refunded.