PFL - Final Review

Front

Which of the following best describes what a cognitive bias is? A rational decision that is based on research and facts, The belief that we are right until someone provides information that contradicts our belief, An error in the way we think that can influence our decisions, The belief that a person should change their opinions when new facts arise

Back

An error in the way we think that can influence our decisions

Front

Unlike traditional economics, behavioral economics believes that…

Back

People do not always behave in a rational way when making economic decisions

Front

People who experience FOMO may...

Back

Go into debt to keep up with everyone else

Front

When using social media, it's important to remember that...

Back

People typically only post about the best parts of their lives on social media

Front

The pain of losing a $20 bill is felt more than the joy of finding it. This is a result of...

Back

Loss aversion

Front

Overconfidence bias may lead the majority of Americans to think that they are…

Back

Above average drivers

Front

Investments of time, effort, and money that cannot be recovered are...

Back

Sunk costs

Front

Putting more value on an object you own for more than its actually worth is an example of...

Back

Endowment effect

Front

A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using?

Back

Scarcity and urgency

Front

You are doing research on a new electric car that you are interested in buying. You only visit the car company’s website and an online message board of electric car enthusiasts to do your research. This strategy may lead to …

Back

Confirmation bias