Behavioral Economics and Cognitive Bias Quiz

What is Behavioral Economics?

• The study of how people make decisions based on their emotions.

• The subfield of economics that applies psychological insights into human behavior and to explain economic decision making.

• The analysis of market trends and their impact on the economy.

• The study of financial markets and investment strategies.

What is Cognitive Bias?

• A conscious error in thinking that leads to rational decision making.

• A subconscious error in thinking that leads to irrational decision making.

• A deliberate attempt to mislead others.

• A method of improving decision making.

What is Confirmation Bias?

• The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence.

• The tendency to seek out new and diverse information.

• The ability to confirm the accuracy of information.

• The process of verifying facts before making a decision.

Tags

CCSS.RL.5.6

What is the Endowment Effect?

• The tendency to undervalue things you already own.

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

• The tendency to value things equally regardless of ownership.

• The tendency to devalue things you do not own.

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

• The fear of losing money in investments.

• The anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website.

• The fear of making wrong decisions.

• The fear of public speaking.

What is the term for the tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event?

• Herd Mentality

• Loss Aversion

• Overconfidence Bias

• Hedonic Adaptation

What does "Herd Mentality" refer to?

• The tendency to regard losses as considerably more important than gains of comparable magnitude

• The tendency to conform to the behaviors and beliefs of the people around you

• The tendency to be more confident in their own abilities

• The tendency to return to a baseline level of happiness

Tags

CCSS.RL.5.6

What is "Loss Aversion"?

• The tendency to regard losses as considerably more important than gains of comparable magnitude

• The tendency to conform to the behaviors and beliefs of the people around you

• The tendency to be more confident in their own abilities

• The tendency to return to a baseline level of happiness

What does "Overconfidence Bias" mean?

• The tendency to regard losses as considerably more important than gains of comparable magnitude

• The tendency to conform to the behaviors and beliefs of the people around you

• The tendency to be more confident in their own abilities

• The tendency to return to a baseline level of happiness

What is "Overestimation"?

• When a person believes they are better at something than they actually are

• The tendency to conform to the behaviors and beliefs of the people around you

• The tendency to be more confident in their own abilities

• The tendency to return to a baseline level of happiness

Tags

CCSS.RL.5.6