Directions In each of these questions a paragraph is given that has a blank in it Out of the given o...........

English ( Master) Paragraph Completion

Directions: In each of these questions, a paragraph is given that has a blank in it. Out of the given options, only one fits in with the context of the paragraph. Select that as the answer.

That human beings often continue to pour money into bad projects because they have already invested in them and cannot bring themselves to lose that investment is well known. Indeed the Sunk Cost Fallacy, as this phenomenon is called, is frequently cited as an example of people failing to behave in the “rational” way that classical economics suggests they should. Though the exact psychological underpinning of the sunk-cost fallacy is debated, it might reasonably be expected to apply only when the person displaying it also made the original investment. _________________________. In making decisions, people may also take into account the sunk costs of others.

However a study published recently suggests this is not true.

It is even more strongly applicable if the time frame is long term in nature.

A possible explanation for the same is that social signaling is involved in such cases.

The sunk-cost phenomenon shapes human behaviour much more broadly than was previously thought.

None of the above

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Explanation:

The line before the blank states that the Sunk Cost Fallacy applies only when ‘the person displaying it also made the original investment’. The line after the blank changes that opinion and states that ‘people may also take into account the sunk costs of others’. We need a statement that bridges the gap between the two.
Options B and C can be easily eliminated as both do not make sense in the passage.
Out of options A and D, D is incorrect as it merely elaborates on how the phenomenon affects the human behavior more than what was imagined before. It does not provide for an appropriate bridge statement.
Option A is correct here. It introduces the notion that what was previously thought may not be true as per new studies.
Hence, option A is correct.