The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-"Throwing good money after bad" is also known as the _____ effect.
A)anchoring
B)sunk-cost
C)status quo
D)familiarity
E)overconfidence

Question

The table below shows the total utility associated with various units of goods X and Y.Table 7.5
 
-"Throwing good money after bad" is also known as the _____ effect.
A)anchoring 
B)sunk-cost 
C)status quo 
D)familiarity 
E)overconfidence

Quizplus · Accepted Answer

The concept of "throwing good money after bad" refers to the sunk-cost effect, which describes the tendency to continue investing in a project or decision because of past investments, even if it no longer makes sense financially. The other options listed do not accurately describe this phenomenon.

The Table Below Shows the Total Utility Associated with Various