Behavioral Economics Quiz

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 seek out information that contradicts our preconceptions

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

• The tendency to avoid information altogether

• The tendency to accept all information as equally valid

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 you do not own

• The tendency to disregard the value of all possessions

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

• The tendency to feel content with current events

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

• The tendency to avoid social media

• The tendency to ignore events happening around you

What is Hedonic Adaptation?

• The tendency to remain unhappy regardless of experiences

• 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 become increasingly happy over time

• The tendency to avoid happiness altogether

What is Herd Mentality?

• The tendency to act independently of others

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

• The tendency to lead others

• The tendency to avoid social interactions

What is Loss Aversion?

• The tendency to regard gains as more important than losses

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

• The tendency to ignore losses altogether

• The tendency to accept losses as inevitable

What is Overconfidence Bias?

• The tendency people have to be less confident in their own abilities

• The tendency people have to be more confident in their own abilities

• The tendency to accurately assess one's abilities

• The tendency to avoid confidence altogether

What is Overestimation?

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

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

• When a person accurately assesses their abilities

• When a person avoids making any assessments

What is Overplacement?

• The tendency to underestimate one's abilities

• The tendency to accurately place oneself in a hierarchy

• The tendency to overestimate one's abilities relative to others

• The tendency to avoid placing oneself in any hierarchy