Personal Finance Unit 1 Remediation

Grace decided to buy the latest smartphone model because all her friends were getting it, even though her current phone was working perfectly fine.

• Sunk-Cost Fallacy

• Anchor Bias

• Bandwagon Effect

• Hedonic Adaptation

Grace has been working on a project for several months and has invested a lot of time and resources into it. Despite realizing that the project is not yielding the expected results and is unlikely to become profitable, she refuses to abandon it. What cognitive bias is Grace exhibiting?

• Sunk-Cost Fallacy

• Anchor Bias

• Status Quo Bias

• Bandwagon Effect

Luna noticed that all her friends were buying the latest smartphone model, even though she was happy with her current phone. She decided to buy it too, just because she didn't want to feel left out or seem uncool.

• Sunk-Cost Fallacy

• Anchor Bias

• FOMO

• Status Quo Bias

Luna recently bought a new phone. Despite some issues with the battery life, she tends to remember her choice as better than it actually was. What is this tendency called?

• Anchor Bias

• Choice-Supportive Bias

• FOMO

• Status Quo Bias

Liam has been using the same phone for years, even though there are newer models with better features available. His reluctance to switch to a new phone, despite the potential benefits, is an example of:

• Choice-Supportive Bias

• Status Quo Bias

• Anchor Bias

• FOMO

Céline often enjoys browsing social media, but she sometimes experiences anxiety when she sees her friends sharing photos of exciting activities, leading her to feel envious and dissatisfied when comparing her life to theirs. What cognitive bias is Céline experiencing?

• Confirmation Bias

• Gambler's Fallacy

• FOMO

• Bandwagon Effect

Last year, Emily bought an expensive laptop that frequently crashed and had poor battery life. This year, when considering a new laptop, she overlooks these issues and remembers it as a reliable device with excellent performance. What cognitive bias is Emily demonstrating?

• FOMO

• Bandwagon Effect

• Choice-Supportive Bias

• Anchor Bias

While shopping, Emily and Jack found a luxury watch priced at $500. Later, they discovered the same watch at another store for $200. They decided to purchase the watch at the second store, feeling it was a bargain despite the high price. What cognitive bias might they be experiencing?

• Anchor Bias

• Bandwagon Effect

• FOMO

• Choice-Supportive Bias

Marie is in her final year of studying engineering at Tech University. Despite finding the coursework increasingly challenging and losing interest, she is determined to complete her engineering degree because she has already invested significant time and effort.

• Confirmation Bias

• Overconfidence Effect

• Endowment Effect

• Sunk-Cost Fallacy

Margot has always driven a Ford. Her parents told her that Fords were the best cars around, and they always only had Fords. When her old car breaks down and it is time for a new one, Margot doesn’t shop around. She goes straight to the Ford dealership and buys a Ford without considering any other options. What is Margot experiencing?

• Bandwagon Effect

• FOMO

• Status Quo Bias

• Anchor Bias