B2 – Upper Intermediate
Have you ever made a bad decision and felt the need to correct or fix your mistake? Everyone in this world has experienced lapses in judgment from time to time, but the way they cope with their errors varies from person to person.
Unfortunately, not all of these methods are healthy or even beneficial, such as the sunk cost fallacy, where we keep doing something because we have already spent time, money, or effort on it, even when continuing is no longer the best choice. In simple terms: “I’ve already invested so much, so I can’t stop now.”
Watch the video to learn more about the sunk cost fallacy.
Vocabulary Questions:
- What does “sunk cost” mean? “I know that there are plenty of other reasons why people stay together, but sunk cost is definitely up there.” Use this term to make your own sentence.
- What does “to call it quits” mean? “It’s better to call it quits now and save yourself from future misery.” Give two (2) synonyms or similar expressions and create a sentence using this phrase.
- What does “to dig a big hole for one’s self” mean? “If you continue to pour more resources into a failing project, you’re just digging a bigger hole for yourself.” Use this phrase in your own sentence. Give a synonym or similar expression.
Discussion Questions:
- Why do people find it difficult to walk away from something they have already invested in?
- How can the sunk cost fallacy affect important decisions about relationships, careers, or education?
- When should one accept that an investment was a mistake and move on?
- Is giving up always a bad thing, or can it sometimes be the smartest choice? Explain.
- Have you ever continued doing something because you had already spent money or time on it? What happened?
2 replies on “The Sunk Cost Fallacy”
1. What does ”sunk cost” mean? “I know that there are plenty of other reasons why people stay together, but sunk cost is definitely up there.” Use this term to make your own sentence.
It is the price that you pay for something that it is not really convenient to you.
When you try to fix a problem, not only you should think in the money, but also in the employed time. It means thinking in the sunk cost.
2. Explain the meaning of the idiom “to call it quits“. “It’s better to call it quits now and save yourself from future misery.” Give two (2) synonyms or similar expressions and create a sentence using this phrase.
It is better to get out now and not give the possibility of worse things comes after.
Interrupt
Terminate
It is necessary to call these homeworks quits to be able to continue working wit this project.
3. What does “to dig a bigger hole” mean? “If you continue to pour more resources into a failing project, you’re just digging a bigger hole for yourself.” Use ‘to dig a bigger hole” in your own sentence.
It means that when you are putting a lot of effort in something, if it is not working well, the deception will be worse.
Going to gym it is something difficult, because you use to have damage in your muscles. You need to be constant, otherwise you are digging a bigger hole for yourself.
Discussion Questions:
1. What are your thoughts about sunk cost fallacy?
I like this point of view but it is very difficult to see if the effort will have reward or not.
2. Give other examples of the sunk cost fallacy.
You are working in some task in your work. You spend several days and when you finish you realize that it is better, the initial solution.
3. Talk about your personal experience with the sunk cost fallacy.
I am not sure about all the sunk cost fallacy in my live, but I think that in this video it is not thinking in the experience that you take for doing something. Not everything is related with time or money. The experience and the learnt is important too.
4. Does the sunk cost influence your decisions? Explain.
It is related with the time or the money that you looses. Normally, I prefer to try something, I used to spend a lot of time to be sure of leaving a task. Luckily, I use to get the targets taht I propose myself.
You did a great job writing your answers to this lesson’s discussion questions.
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Keep going with this exercise to further improve your skills.