1st Behavioral Finance Review

Which social media platform has the most influence on shopping habits?

• Facebook

• Twitter

• Instagram

• Snapchat

Which of the following statements best defines UTILITY?

• What you can obtain for an item at a later time

• How helpful an item is given the context of a current situation

• How well something satisfies a person's wants or needs

• What we lose by giving up the other provided choice

Which of the following statements best defines Exchange Value?

• What you can obtain for an item at a later time

• How helpful an item is given the context of a current situation

• How well something satisfies a person's wants or needs

• What we lose by giving up the other provided choice

Which of the following statements best defines Use Value?

• What you can obtain for an item at a later time

• How helpful an item is given the context of a current situation

• How well something satisfies a person's wants or needs

• What we lose by giving up the other provided choice

Which of the following statements best defines Opportunity Cost?

• What you can obtain for an item at a later time

• How helpful an item is given the context of a current situation

• How well something satisfies a person's wants or needs

• What we lose by giving up the other provided choice

For something to have value, it must

• cost a lot of money.

• be on sale.

• have utility.

• never go out of style.

The following life values can have an effect on our money habits:

• Inner, Social, Physical, Financial

• Financial, Inner, Personal, Professional

• Personal, Professional, Financial, Social

• Inner, Social, Personal, Professional

In the desert-diamond paradox of value situation, why would you NOT select water EVERY time you were offered a choice between water and diamonds?

• Water is more valuable than diamonds, both physically and financially

• The use value of diamonds is higher than the use value of water

• The water will expire by the time you get to the next booth

• The utility of water decreases after your basic needs are met

Which of the following statements best describes the concept of “diminishing marginal utility”?

• The less of an item you have, the less useful or enjoyable it becomes

• The more of an item you acquire, the less useful or enjoyable it becomes

• An item’s exchange value increases over time

• An item’s use value increases over time

The idea that items necessary to life are relatively inexpensive, but luxury items are very expensive, is known as:

• the paradox of value

• the paradox of thrift

• the law of supply and demand

• the law of economics