Category: General Knowledge | Last updated: 2026-09-18

What is the sunk cost fallacy?

A) Investing in sinking ships
B) Continuing a course of action because of previously invested resources, even when it's no longer beneficial
C) Calculating the true cost of sunken treasures
D) A mistake in financial accounting

Explanation

The sunk cost fallacy occurs when people continue investing in something because of what they've already spent (time, money, effort), rather than evaluating future value.

Practice More General Knowledge Questions

Browse all questions