Unit 1- vocabulary Quiz

What is the subconscious use of irrelevant information as a fixed reference point for making decisions called?

• Cognitive biases

• Anchoring

• Endowment effect

• Herd mentality

Which term describes systematic patterns of thought that lead to inaccurate perceptions and decisions?

• Confirmation bias

• Cognitive biases

• Loss aversion

• Present bias

What is the tendency to search for information that supports your preconceptions?

• Endowment effect

• Herd mentality

• Confirmation bias

• Overconfidence bias

What describes the tendency to put more value on things you already own?

• Endowment effect

• Sunk cost fallacy

• Overestimation

• Hedonic adaptation

What is the tendency to conform to the behaviors and beliefs of the people around you?

• Loss aversion

• Herd mentality

• Present bias

• Overplacement

What is the tendency to regard losses as more important than gains of comparable magnitude?

• Loss aversion

• Sunk costs

• Overprecision

• FOMO

What is it called when individuals place a greater value on goods/income achieved in the present moment?

• Behavioral Economics

• Present bias

• Overconfidence bias

• Social Media Marketing

Which subfield of economics applies psychological insights to human behavior?

• Behavioral Economics

• Cognitive biases

• Sunk Cost Fallacy

• Hedonic Adaptation

What is the tendency to feel anxiety that an exciting event may be happening elsewhere?

• Overestimation

• FOMO (Fear of Missing Out)

• Endowment effect

• Overplacement

What is the tendency to return to a baseline level of happiness regardless of positive or negative experiences?

• Hedonic Adaptation

• Sunk costs

• Overconfidence bias

• Anchoring