Herd Behavior

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.

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 also occurs in smaller groups

• 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.

According to the 'Herd Mentality' article, what is herd behavior?

• It's when groups rationally make decisions together.

• It's when individuals make foolish decisions.

• It's when individuals break away from a group.

• It’s when people blindly follow the decisions of a group.

According to the 'Herd Mentality' article, what would be the best example of herd behavior?

• a large crowd running in a marathon

• an audience at a movie theater

• a large stampede during an earthquake

• a long line at the grocery story

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.

The term "herd behavior" comes from:

• the behavior of animals in herds, particularly when they are in a dangerous situation

• the behavior of people making sheep sounds

• the behavior of people who hear about animals

• the behavior of a group of animals on an island

Which of the following was NOT an example of "herd behavior" given in the text:

• Stock market trends: "crashes" and "bubbles"

• Football Hooliganism in Europe in the 1980s

• Hitler's undercover German officers in the crowds at his speeches

• The tendency of humans to choose to wear certain clothing based on peer pressure

Which of the following was an example from the text of a more positive, "influential" effect of "herd behavior" :

• A family making a choice of restaurant based on the size of the crowd

• A family planning a vacation to a location that everyone wants to visit

• A family deciding to choose a movie based on the crowd

• A family purchasing a new car exactly like a car purchased by their neighbors