Behavioral Economics Quiz FF_VA_O

What does the acronym "FOMO" stand for in behavioral economics?

• Fear of Missing Out

• Focus on Monetary Outcomes

• Financial Overestimation of Market Options

• Future-Oriented Market Optimization

Which of the following is an example of a cognitive bias?

• Confirmation bias

• Physical bias

• Logical bias

• Mathematical bias

Which term describes the tendency to spend money based on feelings rather than logic?

• Emotional spending

• Rational budgeting

• Cognitive investing

• Analytical saving

Social influence in behavioral economics refers to:

• The impact of others’ opinions and actions on individual decisions

• The effect of weather on market trends

• The role of government in regulating markets

• The influence of technology on spending

Which of the following is a strategy to overcome cognitive biases?

• Increasing self-awareness

• Ignoring all advice

• Spending impulsively

• Avoiding all social interactions

Which cognitive bias involves overestimating the likelihood of events based on how easily examples come to mind?

• Availability heuristic

• Anchoring bias

• Status quo bias

• Sunk cost fallacy

If a person buys a product because their friends have it, which behavioral economics concept is most directly involved?

• Social influence

• Loss aversion

• Anchoring

• Mental accounting

Which of the following best describes an emotional spending trigger?

• Shopping after receiving bad news

• Creating a monthly budget

• Comparing product prices

• Reading product reviews

A person continues to invest in a failing project because they have already spent a lot of money on it. Which bias is this?

• Sunk cost fallacy

• Optimism bias

• Hindsight bias

• Framing effect

A student notices that they tend to spend more money when shopping with friends than when shopping alone. What strategy could help them overcome this bias?

• Setting a spending limit before shopping

• Ignoring all advertisements

• Shopping only online

• Avoiding all social gatherings