Which of the following is an example of a sunk cost fallacy?
A) "I paid $85 for this wool sweater, but it is too scratchy on my skin, so I think I'll give it to my mother-in-law."
B) "I'm not going to allow the sacrifice of 2,527 troops who have died in Iraq to be in vain by pulling out before the job is done."
C) "I will not buy an Under Armour hoodie until it goes on sale for at least 25% off."
D) "I'm going to buy another bag of popcorn because this popcorn is burnt."

Question

Quizplus · Accepted Answer

The sunk cost fallacy occurs when decisions are made based on past investments (time, money, resources) rather than on current and future benefits and costs. Choice B reflects this fallacy by suggesting that because lives have already been lost, continuing the action (regardless of its current or future value or cost) is justified to not render the previous losses "in vain."

Which of the Following Is an Example of a Sunk