Behavioral Economics

What is Confirmation Bias?

• The tendency to seek out information that supports our preconceptions and to ignore or distort contradictory evidence

• The tendency to forget important information

• The tendency to overestimate one's abilities

• The tendency to conform to social norms

What is the Endowment Effect?

• The tendency to undervalue things you own

• The tendency to put more value on things you already own

• The tendency to seek out new experiences

• The tendency to avoid risks

What does FOMO (Fear of Missing Out) refer to?

• The tendency to feel anxiety or fear that an exciting or interesting event may currently be happening elsewhere

• The tendency to avoid social interactions

• The tendency to overestimate one's abilities

• The tendency to conform to the behaviors of others

What is Hedonic Adaptation?

• The tendency to remain unhappy regardless of circumstances

• The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event

• The tendency to avoid pleasurable activities

• The tendency to seek out new and exciting experiences

Which concept refers to the tendency to return to a baseline level of happiness?

• Herd Mentality

• Endowment Effect

• Hedonic Adaptation

• Overestimation

Which bias involves the tendency to be more confident in one's own abilities?

• Overconfidence Bias

• Cognitive Bias

• FOMO (Fear of Missing Out)

• Hedonic Adaptation

What is the term for when a person mistakenly believes they are better than others?

• Overprecision

• Overplacement

• Sunk Cost Fallacy

• Social Media Marketing

What is the term for when a person has an exaggerated certainty that an answer is correct?

• Overplacement

• Sunk Costs

• Overprecision

• Overnight Test

What is the term for when a person believes they are better at something than they actually are?

• Overplacement

• Overprecision

• Sunk Cost Fallacy

• Social Media Marketing

Which term describes a strategy to combat loss aversion by imagining an item replaced with cash?

• Sunk Costs

• Overplacement

• Overnight Test

• Overprecision