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WorksheetsNGPF Consumer Behavior & Skills
Total questions: 66
Worksheet time: 33mins
Which of the following scenarios BEST demonstrates FOMO (Fear of Missing Out)?
Megan takes a baking class after seeing a sign for the class at her favorite bakery
David goes on a vacation to Europe and posts about it on social media every day
Angela sees an advertisement for a pair of shoes and decides to buy them
José wants to go see a movie that all of his friends have seen and are raving about
Research done on peoples' salaries and happiness levels has shown that...
Most people are satisfied with their current annual salaries
Increasing your annual salary is guaranteed to increase your long-term happiness
Humans typically become accustomed to how much they earn and eventually want more
Most people need to earn at least $200,000 a year in order to be happy
Which of the following best describes what a cognitive bias is?
A rational decision that is based on research and facts
The belief that a person should change their opinions when new facts arise
The belief that we are right until someone provides information that contradicts our belief
An error in the way we think that can influence our decisions
Janet has a snowboard she doesn’t use anymore, but loss aversion has made her question whether or not she should sell it. Her friend Jack suggests she use the Overnight Test. Which of the following scenarios demonstrates the strategy she’s using?
Imagine the snowboard was replaced with cash, then make a plan about how to spend the cash.
Imagine the snowboard was replaced with cash, then figure out how to keep the cash and get her snowboard back.
Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard.
Imagine the snowboard was replaced with cash, then figure out how to use the cash to get her snowboard back.
Sebastian began day trading stocks at the beginning of the summer. After a month, he made a profit of $200. Due to his short term success and his belief that he is a highly skilled trader, Sebastian puts his entire savings into the market. This is an example of
Overconfidence Bias
The Fear of Missing Out (FOMO)
Confirmation Bias
The Endowment Effect
Imagine two scenarios:
Scenario 1: You see a rare sports card being sold for $500 in a store but choose not to buy it because you think it’s too expensive.
Scenario 2: You find a rare sports card worth $500 in your parents’ attic. Rather than sell it, you choose to put it in a case and display it in your room.
In scenario 1, you are putting more value on your $500 than the card. In scenario 2, you are putting more value on your card than the $500. This is an example of what?
Fear of missing out
Overconfidence
Endowment effect
Confirmation bias
Michael observed he felt the pain of losing a $20 bill more than he felt the joy of finding it on the sidewalk the week before. This is a result of...
Endowment effect
Loss aversion
Sunk cost
Overconfidence
All of the following are types of overconfidence bias EXCEPT...
Overplacement
Overestimation
Overprecision
Overgeneralization
Unlike traditional economics, behavioral economics believes that
People behave in a rational way when making economic decisions
There is no way to predict how people will make economic decisions
People will always update their viewpoints based on new information
People do not always behave in a rational way when making economic decisions
Investments of time, effort, and money that cannot be recovered are...
Opportunity costs
Sunk costs
Relevant costs
Avoidale costs
A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using?
Coupons
Scarcity and urgency
Buy now, get free shipping
Free trials and samples
You spend an entire Saturday going to car dealerships in search of a used car. You spend hours looking at cars and even test drive a few, but there are none you like that fit your budget. What is the sunk cost you should ignore when deciding whether or not to buy a car that day?
The cost of the car
The cost of the warranty
The time it will take to drive home
The time you spent looking for cars that day
You are doing research on a new electric car that you are interested in buying. You only visit the car company’s website and an online message board of electric car enthusiasts to do your research. This strategy may lead to …
Herd Mentality
The Endowment Effect
Confirmation Bias
Loss Aversion
An "experiential purchase" is...
Something that commemorates an experience, like a souvenir
Something that creates or enhances an experience or connects us with other people
Something that was made by hand rather than at a factory
Something that has a lot of monetary value
Herd mentality may explain why...
Davona chose to skip dinner with her friends and watched a movie at home instead
Mason went to see a movie with his friends even though he didn't like the genre
Ginnifer decided to keep her current phone even though her closest friends bought the new version
Akshay bought a shirt he liked from an unpopular brand
Imani attends a town hall meeting where a tax increase is proposed to help pay for a new bridge. After the meeting, she reads Facebook comments that complain about the already high taxes in her town, which is a view that she agrees with. To avoid confirmation bias, Imani should…
avoid social media since it will influence her decision
seek out comments that support the tax increase and the bridge project to provide an alternative viewpoint
allow others to make the decision because she is too biased
join a Facebook group that organizes citizens that are opposed to the tax increase
Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket?
It would initially increase, then return to a baseline level
It would remain at a baseline level, then increase over time
It would initially decrease, then return to a baseline level
It would remain at a baseline level, then decrease over time
You buy a stock that has a price of $50 per share. A week later the stock's price drops to $25 per share (it's lost half its value). If you are affected by loss aversion you would be likely to…
Buy more shares
Sell the shares
Do nothing
Look for other stocks to buy
People who experience FOMO may ...
save a percentage of their paycheck each month
donate money to a cause they care about
go into debt to keep up with everyone else
create and stick to a monthly budget
Your friend gives you an item. A day later, they offer to trade you another item of similar value. According to the endowment effect, most people would keep the item…
They received first
They were offered second
They could sell for the most
They think looks the best
People are compelled to buy MORE stuff for all of the following reasons EXCEPT...
The media portrays that the more stuff we have, the happier we will be
We tend to want more compared to those around us
Scientific research proves that the more items we own, the happier we tend to be
Once the initial novelty of a recent purchase wears off, we look to buy the next new thing
Each of the following statements is an example of confirmation bias EXCEPT...
Interpreting information to support your existing beliefs
Seeking information that challenges your beliefs
Only remembering details that uphold your beliefs
Ignoring information that challenges your beliefs
All of the following explain why humans might "follow the herd" EXCEPT...
People prefer having opinions that are very different from those of others
It can be uncomfortable standing out from the crowd
Humans evolved to stick with the herd to survive
Fighting social pressure can be difficult to do
Which of the following scenarios BEST demonstrates FOMO (Fear of Missing Out)?
Megan takes a baking class after seeing a sign for the class at her favorite bakery
David goes on a vacation to Europe and posts about it on social media every day
Angela sees an advertisement for a pair of shoes and decides to buy them
José wants to go see a movie that all of his friends have seen and are raving about
Research done on peoples' salaries and happiness levels has shown that...
Most people are satisfied with their current annual salaries
Increasing your annual salary is guaranteed to increase your long-term happiness
Humans typically become accustomed to how much they earn and eventually want more
Most people need to earn at least $200,000 a year in order to be happy
Which of the following best describes what a cognitive bias is?
A rational decision that is based on research and facts
The belief that a person should change their opinions when new facts arise
The belief that we are right until someone provides information that contradicts our belief
An error in the way we think that can influence our decisions
Janet has a snowboard she doesn’t use anymore, but loss aversion has made her question whether or not she should sell it. Her friend Jack suggests she use the Overnight Test. Which of the following scenarios demonstrates the strategy she’s using?
Imagine the snowboard was replaced with cash, then make a plan about how to spend the cash.
Imagine the snowboard was replaced with cash, then figure out how to keep the cash and get her snowboard back.
Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard.
Imagine the snowboard was replaced with cash, then figure out how to use the cash to get her snowboard back.
Sebastian began day trading stocks at the beginning of the summer. After a month, he made a profit of $200. Due to his short term success and his belief that he is a highly skilled trader, Sebastian puts his entire savings into the market. This is an example of
Overconfidence Bias
The Fear of Missing Out (FOMO)
Confirmation Bias
The Endowment Effect
Imagine two scenarios:
Scenario 1: You see a rare sports card being sold for $500 in a store but choose not to buy it because you think it’s too expensive.
Scenario 2: You find a rare sports card worth $500 in your parents’ attic. Rather than sell it, you choose to put it in a case and display it in your room.
In scenario 1, you are putting more value on your $500 than the card. In scenario 2, you are putting more value on your card than the $500. This is an example of what?
Fear of missing out
Overconfidence
Endowment effect
Confirmation bias
Michael observed he felt the pain of losing a $20 bill more than he felt the joy of finding it on the sidewalk the week before. This is a result of...
Endowment effect
Loss aversion
Sunk cost
Overconfidence
All of the following are types of overconfidence bias EXCEPT...
Overplacement
Overestimation
Overprecision
Overgeneralization
Unlike traditional economics, behavioral economics believes that
People behave in a rational way when making economic decisions
There is no way to predict how people will make economic decisions
People will always update their viewpoints based on new information
People do not always behave in a rational way when making economic decisions
Investments of time, effort, and money that cannot be recovered are...
Opportunity costs
Sunk costs
Relevant costs
Avoidale costs
A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using?
Coupons
Scarcity and urgency
Buy now, get free shipping
Free trials and samples
You spend an entire Saturday going to car dealerships in search of a used car. You spend hours looking at cars and even test drive a few, but there are none you like that fit your budget. What is the sunk cost you should ignore when deciding whether or not to buy a car that day?
The cost of the car
The cost of the warranty
The time it will take to drive home
The time you spent looking for cars that day
You are doing research on a new electric car that you are interested in buying. You only visit the car company’s website and an online message board of electric car enthusiasts to do your research. This strategy may lead to …
Herd Mentality
The Endowment Effect
Confirmation Bias
Loss Aversion
An "experiential purchase" is...
Something that commemorates an experience, like a souvenir
Something that creates or enhances an experience or connects us with other people
Something that was made by hand rather than at a factory
Something that has a lot of monetary value
Herd mentality may explain why...
Davona chose to skip dinner with her friends and watched a movie at home instead
Mason went to see a movie with his friends even though he didn't like the genre
Ginnifer decided to keep her current phone even though her closest friends bought the new version
Akshay bought a shirt he liked from an unpopular brand
Imani attends a town hall meeting where a tax increase is proposed to help pay for a new bridge. After the meeting, she reads Facebook comments that complain about the already high taxes in her town, which is a view that she agrees with. To avoid confirmation bias, Imani should…
avoid social media since it will influence her decision
seek out comments that support the tax increase and the bridge project to provide an alternative viewpoint
allow others to make the decision because she is too biased
join a Facebook group that organizes citizens that are opposed to the tax increase
Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket?
It would initially increase, then return to a baseline level
It would remain at a baseline level, then increase over time
It would initially decrease, then return to a baseline level
It would remain at a baseline level, then decrease over time
You buy a stock that has a price of $50 per share. A week later the stock's price drops to $25 per share (it's lost half its value). If you are affected by loss aversion you would be likely to…
Buy more shares
Sell the shares
Do nothing
Look for other stocks to buy
People who experience FOMO may ...
save a percentage of their paycheck each month
donate money to a cause they care about
go into debt to keep up with everyone else
create and stick to a monthly budget
Your friend gives you an item. A day later, they offer to trade you another item of similar value. According to the endowment effect, most people would keep the item…
They received first
They were offered second
They could sell for the most
They think looks the best
People are compelled to buy MORE stuff for all of the following reasons EXCEPT...
The media portrays that the more stuff we have, the happier we will be
We tend to want more compared to those around us
Scientific research proves that the more items we own, the happier we tend to be
Once the initial novelty of a recent purchase wears off, we look to buy the next new thing
Each of the following statements is an example of confirmation bias EXCEPT...
Interpreting information to support your existing beliefs
Seeking information that challenges your beliefs
Only remembering details that uphold your beliefs
Ignoring information that challenges your beliefs
All of the following explain why humans might "follow the herd" EXCEPT...
People prefer having opinions that are very different from those of others
It can be uncomfortable standing out from the crowd
Humans evolved to stick with the herd to survive
Fighting social pressure can be difficult to do
The tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion
Authority Bias
Browser Extension
Buy Nothing Project
Comparison Shopping
A dark pattern that makes you think you are taking a specific action, but a different, undesirable action takes place instead
Authority Bias
Buy Nothing Project
Bait and Switch
Browser Extension
The tendency to keep prior commitments and staying consistent with our prior selves when possible
Commitment and Consistency Bias
Authority Bias
Bait and Switch
Comparison Shopping
A dark pattern where the option to decline an offer is worded to shame the user into compliance
Dark Patterns
Confirmshaming
Consumer
Data Breach
Website design features intended to trick users into doing things they might not want to do, but which benefit the business in question
Commitment and Consistency Bias
Confirmshaming
Dark Patterns
Comparison Shopping
The use of game design elements to get you to spend more time and more money on a website or app
Friend Spam
Gamification
Forced Continuity
Installment Plan
The tendency to judge in favor of people and symbols we like
Liking Bias
Investment Scam
Influencer
Identity Theft
A type of scam in which personal information is requested, typically through an illegitimate email
Phishing Scam
Price Matching
Privacy Zuckering
Pyramid Scheme
A type of scam in which investors artificially inflate the price of an asset and then sell out before the price falls
Privacy Zuckering
Pump and Dump Scam
Price Matching
Reciprocity Bias
A type of scam in which an online relationship is built and then money is requested
Scarcity Bias
Shopping Scam
Romance Scam
Social Proof Bias
Factors such as authority, liking, or scarcity that have an effect on the way we make decisions
Sneak Into Basket
Thrifting
Trick Question
Ways of Influence
A type of scam in which a QR code directs users to a fake website to collect information or install malware
Privacy Zuckering
Reciprocity Bias
Price Matching
QR Code Scam
A dark pattern in which a retailer makes it hard for you to compare the price of an item with that of another similar item so you cannot make an informed decision
Liking Bias
Misdirection
Multi-level Marketing Company (MLM)
Price Comparison Prevention
Additional charges added on to the cost of a good or service that a consumer may not necessarily be aware of at the time of purchase
Installment Plan
Identity Theft
Gamification
Hidden Fees
A dark pattern in which you are tricked into sharing more information about yourself than you intended to
Pyramid Scheme
QR Code Scam
Reciprocity Bias
Privacy Zuckering
A dark pattern in which your free trial with a service comes to an end and your account begins to be charged without any warning
Forced Continuity
Sneak Into Basket
Social Proof Bias
Ways of Influence
The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal
2-Factor Authentication (2FA)
Unit Price
Software as a Service (SaaS)
Social Proof Bias
An illicit business model where profits are based on the investor's ability to recruit other individuals who are enrolled to make payments to their recruiters. Generally, neither a product or service is delivered.
Price Comparison Prevention
Price Matching
Privacy Zuckering
Pyramid Scheme
A payment method that allows you to pay for purchases over time by dividing the purchase amount into smaller equal payments, often with interest and additional fees; also known as Buy Now Pay Later plans
Installment Plan
Investment Scam
Liking Bias
Identity Theft
A type of scam in which fake investment opportunities are sold, often using cryptocurrency
Privacy Zuckering
Price Comparison Prevention
Investment Scam
Misdirection
