Economics Vocabulary Quiz

What is Behavioral Economics?

• The study of traditional economic models

• The subfield of economics that applies psychological insights into human behavior

• The analysis of market trends and stock prices

• The study of economic history

What does Cognitive Bias refer to?

• A conscious decision-making process

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

• A method of improving memory

• A strategy for financial planning

What is Confirmation Bias?

• The tendency to seek out new experiences

• The tendency to search for information that supports our preconceptions

• The ability to remember past events accurately

• The skill of making quick decisions

What does FOMO (Fear of Missing Out) describe?

• The fear of losing money in investments

• The anxiety that an exciting event may be happening elsewhere

• The fear of public speaking

• The fear of flying

What is Herd Mentality?

• The tendency to act independently

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

• The ability to lead a group effectively

• The skill of negotiating in groups

What is Loss Aversion?

• The tendency to prefer gains over losses

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

• The ability to recover quickly from financial losses

• The strategy of investing in high-risk stocks

What does Overconfidence Bias refer to?

• The tendency to underestimate one's abilities

• The tendency to be more confident in one's own abilities than is justified

• The ability to accurately assess one's skills

• The strategy of relying on others for decision making

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

• The ability to accurately predict outcomes

• The strategy of underestimating competitors

What is the Overnight Test?

• A method to improve sleep quality

• A strategy used to combat loss aversion by imagining an item replaced with cash

• A test to measure financial literacy

• A strategy for quick decision making

What is Social Media Marketing?

• The use of traditional media for advertising

• The use of social media platforms to promote a product or service

• The study of social media trends

• The analysis of online consumer behavior