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WorksheetsBehavioral Economics - Unit 1
Total questions: 25
Worksheet time: 13mins
Life Values are . . .
The tangible aspects of life, the external world, our physical health and well-being
The principles in life that are important to you
Our personal identity (how we see ourselves) and our social identity (how we believe others see us)
Principles that are important to you because of the community in which you live
Financial Values are . . .
Principles in life that are important to you
Principles that are important to you because of the community in which you live
The tangible aspects of life, the external world, our physical health and well-being
Unrelated to how much money we have, these values reflect what we think or believe about money
Inner Values are . . .
Principles that are important to you because of the community in which you live
Unrelated to how much money we actually have, these values reflect what we think or believe about money
Our personal identity (how we see ourselves) and our social identity (how we believe others see us)
The tangible aspects of life, the external world, our physical health and well-being
Physical Values are . . .
Our personal identity (how we see ourselves) and our social identity (how we believe others see us)
The tangible aspects of life, the external world, our physical health and well-being
Principles that are important to you because of the community in which you live
Unrelated to how much money we actually have, these values reflect what we think or believe about money
Social Values are . . .
Our personal identity (how we see ourselves) and our social identity (how we believe others see us)
Principles that are important to you because of the community in which you live
A social media user who has earned credibility with specific groups and who can use their large platform to market a product and get paid
Seeing pictures of social events that you were unable to attend
The Bean/Rock Game caused us to differentiate between
needs and wants
social and emotional needs
research topics and experiences
rocks and beans
Jed said, "I made a budget for myself in my personal finance class and used my values to decide how I want to use my money." What does Jed mean by this?
Jed asked his friends and family for advice to decide how to use his money
Jed identified what is important to him and used that knowledge to decide how to use his money
Jed followed recommendations he saw on social media to decide how to use his money
Jed used the value of his bank account balance to decide how to use his money
What are social values, as they pertain to money?
How your family, friends, and community members impact your feelings about money
How you, personally, care and think about finances
How companies and advertisement make you feel about money
How banks and other financial institutions treat you and your money
Financial values are . . .
Principles in life that are important to you
Principles that are important to you -- the community in which you live
The tangible aspects, the external world, physical health and well-being
These values reflect what we think or believe about money
What is one thing you would NOT do if you are trying to decrease social media influences in your life?
Spend more time playing chess with friends
Go to the gym
Increase your time on SnapChat and TikTok
Read a book
Mona wants to use an investment app that all of her friends are raving about. She CAN overcome FOMO, by NOT doing what?
Take time to reflect and identify why she is so eager to use the app
Watch a video about app, download app, and start using it that day
Seek out reviews that talk about the disadvantages of using the app
Ask people outside her friend group for their opinions and perspectives
What percentage of people make purchases due to FOMO?
45%
78%
60%
25%
Even though you’re full, you keep eating because the meal was expensive. Example is:
Fear of Missing Out
Counting carbs
The Sunk Cost Fallacy
The Endowment Effect
Behavioral economics…
Tracks and examines stock market trends over a certain period of time
Analyzes how different economies behave over time
Economics and Psychology -- why people behave the way they do
Economics that studies people who make rational and objective decisions
Cognitive Bias is...
The belief that our abilities are better than they actually are
The desire to seek out information that confirms our existing beliefs
The concept of placing more value on an item when we own it
An error in the way we think that can influence our decisions
Bandwagon Effect refers to
Doing something others are doing
A traveling band
Buying a product that can be sold for a lower price
How much you could obtain for an item at a later time
Loss aversion refers to
describes why the pain of losing is psychologically twice as powerful as the pleasure of gaining
describes our tendency to be more willing to pay when there is no physical money involved
sentimentality for days gone by lead us to place increased value on social connectedness and less value on saving money
describes how we tend to avoid options that we consider to be missing information
Which of the following is TRUE about cognitive biases?
There are only a handful of cognitive biases that exist
Awareness is the first step to overcoming the influence of a cognitive bias
It is easy to recognize when cognitive biases influence our own decisions
There is rarely anything you can do to combat a cognitive bias’ influence
FOMO (Fear of Missing Out) is . . .
Feeling anxiety/fear that an exciting/ interesting event may happen w/o you
Fear of Mediating Outside in undesirable weather
Conforming to the behaviors and beliefs of the people around you
Seeing old pictures of social events that you were unable to attend
Decoy pricing asks the question . . .
Why do we feel more strongly about one option after a third one is added?
Why do we value items more if they belong to us?
Why does paying without physical cash increase spending?
Why do we support opinions as they become more popular?
When you select an option that has four items priced together, instead of just the three you need individually, that could be considered:
Paying it Forward
ConfirmationBias
Bundling Bias
Nostalgia Effect
Suggestions of ways to spend money better include
Buy experiences instead of things
Help others instead of yourself
Buy many small pleasures instead of few big ones
Hoard your money; don't help others.
Reasons given for why we like to buy more stuff include all of the following EXCEPT:
It makes us wanting more
It feels good
We cannot help it
We think we NEED it
The bandwagon effect can be described as:
desire for harmony
believing that since others believe it, then it's probably true
reading books and seeing movies that no one else wants to read or watch
desire to conform to the majority and go with the flow
Overconfidence bias may lead the majority of Americans to think that they are…
Average drivers
Extremely poor drivers
Above average drivers
Below average drivers
