Herd Behavior

Which statement best describes the relationship between the stock marker and herd behavior?

• Stock market employees work in a constant state of anxiety, much like herd animals.

• Stock market bubbles and crashes are sometimes caused by herd behavior but are most often caused by fear.

• Herd behavior contributes to stock market changes because it compels stockbrokers to act on emotion rather than reason.

• Both herd behavior and the stock market are motivated mainly by greed, which prevents people from using logic and reason.

Why does the author likely include the final section titled, "Everyday Decision-Making" in the article?

• To show how herd behavior can affect us daily

• To show that herd behavior can affect us daily

• To demonstrate how herd behavior allows individuals to avoid risks

• To acknowledge that herd behavior is a problem that everyone faces.

Which of the following best summarizes the central idea of the text?

• The actions of a large group can greatly influence an individual's actions.

• Herd behavior suggests that there are limits to human beings' free will.

• Crowds always become violent and chaotic when individuals begin to panic.

• Even when acting alone, humans are not as advanced as we would like to think.

According to this article, what happens to a person's sense of individuality when they follow a larger group?

• It shuts down.

• It grows weaker.

• It grows stronger.

• It remains the same.

Which statement best describes the relationship between the stock market and herd behavior?

• Stock market employees work in a constant state of anxiety, much like herd animals.

• Stock market bubbles and crashes are sometimes caused by herd behavior but are most often caused by fear.

• Herd behavior contributes to stock market changes because it compels stockbrokers to act on emotion rather than reason.

• Both herd behavior and the stock market are motivated mainly by greed, which prevents people from using logic and reason.

What is herd behavior? When does it normally happen? Use a form of the word irrational in your response.

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How does the author portray herd behavior in the example about the family and the restaurant?

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What might be some potential positive effects of herd behavior? What about negative effects?

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What term is used to describe the tendency of individuals to think and act as a group?

• Group behavior

• Herd behavior

• Collective action

• Swarm intelligence

What does the text suggest about the subtlety of herding in everyday situations?

• It is always obvious and easy to spot

• It is a rare phenomenon that seldom occurs

• It is a simple behavior that involves following a crowd

• It is a subtle tendency to follow a crowd rather than an individual path