A president is managing a war that is not going well.Nevertheless,he refuses to withdraw troops,arguing that doing so would waste the billions of dollars spent and thousands of lives lost fighting the war.The president's line of reasoning illustrates:
A)base-rate ignorance.
B)the sunk-cost fallacy.
C)the conjunction fallacy.
D)the principle of diminishing returns.

Question

Quizplus · Accepted Answer

The president's line of reasoning is an example of the sunk-cost fallacy, which occurs when a person continues with a project or decision because of the resources already invested, even when it is no longer rational to do so. In this case, the president is willing to continue the war despite it not going well, because of the money and lives that have already been spent on it.

A President Is Managing a War That Is Not Going