Understanding Cognitive Biases Quiz

The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence is known as:

• Anchoring Bias

• Confirmation Bias

• Availability Heuristic

• Hindsight Bias

The tendency to put more value on things you already own is called:

• Endowment Effect

• Loss Aversion

• Status Quo Bias

• Sunk Cost Fallacy

The tendency to feel anxiety or fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website, is referred to as:

• Social Comparison Bias

• Bandwagon Effect

• Fear of Missing Out (FOMO)

• Herd Behavior

The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event is known as:

• Hedonic Treadmill

• Optimism Bias

• Pessimism Bias

• Self-serving Bias

The tendency to conform to the behaviors and beliefs of the people around you is known as:

• Herd Mentality

• Social Proof

• Bandwagon Effect

• Groupthink

The tendency to regard losses as considerably more important than gains of comparable magnitude is called:

• Loss Aversion

• Endowment Effect

• Risk Aversion

• Sunk Cost Fallacy

The tendency people have to be more confident in their own abilities is referred to as:

• Overconfidence

• Optimism Bias

• Self-serving Bias

• Illusory Superiority

The tendency to make decisions about a current situation based on what resources you have already invested in the situation is known as:

• Sunk Cost Fallacy

• Endowment Effect

• Status Quo Bias

• Loss Aversion

Javier is a part of an online social media group that encourages investing in trending stocks. He always hears about how these stocks are performing really well and wants to invest in some of the stocks that have been mentioned in recent posts. This scenario is an example of:

• Bandwagon Effect

• Confirmation Bias

• Overconfidence Bias

• Availability Heuristic

Suli takes a car out for a test drive and starts to imagine herself as the new owner of the car. When she comes back, she feels more attached to the car and is willing to pay more for it. This scenario illustrates:

• Endowment Effect

• Anchoring Bias

• Status Quo Bias

• Loss Aversion