WorksheetsNGPF Unit 1 - Behavior Economics Review
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
This shows how psychological, social, and cognitive factors influence people's decision-making, often deviating from traditional economic assumptions of rationality.
a)
Economics
b)
Psychology
c)
MacroEconomics
d)
Behavior Economics
2.
Cognitive Bias
a)
An error in the way we think that can influence our decisions
b)
The desire to seek out information that confirms our existing beliefs
c)
The belief that our abilities are better than they actually are
d)
The concept of placing more value on an item when we own it
3.
Confirmation Bias
a)
Our underlying tendency to notice and focus on things that already fit our beliefs
b)
The concept of placing more value on an item when we own it
c)
The belief that our abilities are better than they actually are
d)
An error in the way we think that can influence our decisions
4.
Endowment Effect
a)
Our underlying tendency to notice and focus on things that already fit our beliefs
b)
The belief that our abilities are better than they actually are
c)
The tendency of people to value items that they own more highly than if they did not belong to them
d)
When the government gives money to small businesses to stimulate growth
5.
FOMO
a)
Fear Of Monster Orangutans
b)
Fear of Missing Out
c)
Florida Oranges Mock Ostriches
d)
Fear of making oreos
6.
Hedonic Adaptation
a)
The suggestion that our brains seek out new experiences
b)
Doing only what "feels" good to do, not what is good
c)
Following the trends of what everyone else does
d)
None of the above
7.
Bandwagon Effect
a)
Cowboys Fans and Warriors Fans
b)
The habit of doing what you want because it feels good
c)
The habit of adopting certain behaviors or beliefs because may others do the same
d)
Doing things on your own for your own well thought out reasons
8.
This describes how our decision making gets worse as we make additional choices, causing our cognitive abilities to get worn out.
a)
Decision Fatigue
b)
Cognitive Bias
c)
Decision Quanitity
d)
Declinism
9.
This is the process of attaching a reward to a given behavior
a)
Bribing
b)
Incentivization
c)
Institutionalization
d)
Motivation
10.
This is when our memories of a specific time, place, or things can cause us to spend money on things that remind us of that thing.
Ex: You really need to save some money, but you come across your favorite childhood snack that you have not seen in a long time.
a)
Cognitive Bias
b)
Bandwagon Effect
c)
Nostalgia Effect
d)
Endowment Effect
11.
Being Influenced by the majority, rather than thinking for yourself
a)
Bandwagon Effect
b)
Herd Mentality
c)
Individualism
d)
Majority Rules
12.
The pain of losing is twice as powerful as the pleasure of gaining. People tend to focus on acquiring equivalent gains. What is this describing?
a)
Insurance
b)
Loss aversion
c)
Gambling Effect
d)
None of the Above
13.
Overconfidence Bias
a)
A tendency to underestimate one's abilities
b)
A tendency to overestimate one's abilities
c)
A preference for avoiding risks
d)
A tendency to ignore past experiences
14.
Overnight Test
a)
A quick evaluation conducted during the night
b)
A method to assess the long-term viability of a decision
c)
A psychological experiment conducted during sleep
d)
A strategy for managing time-sensitive tasks
15.
Over placement
a)
Placing too much emphasis on one's achievements
b)
Placing too much trust in others
c)
Overestimating the demand for a product or service
d)
Overestimating one's rank or standing relative to others
16.
Over precision
a)
A tendency to underestimate the precision of measurements
b)
A tendency to be overly certain about one's beliefs or judgments
c)
A preference for detailed instructions
d)
A tendency to underestimate the time required for a task
17.
Social Media Marketing
a)
Marketing strategies aimed at in-person interactions
b)
Promoting products or services through social media platforms
c)
Traditional advertising methods
d)
Email marketing campaigns
18.
Sunk Costs
a)
Costs that can be recovered if a project is abandoned
b)
Costs that have already been incurred and cannot be recovered
c)
Costs associated with future investments
d)
Costs that are variable and can be adjusted easily
19.
This is the idea that once you have invested a lot of time, money, or energy into something, that you must "see it through" to break even
a)
Sunk Cost
b)
Sunk Cost Fallacy
c)
Over Placement
d)
None of the Above
20.
Transaction Utility
a)
The perceived value gained from completing a transaction
b)
The cost associated with conducting a transaction
c)
The likelihood of encountering errors during a transaction
d)
The duration of a transaction process
21.
Mental Accounting
a)
Categorizing and treating different types of money differently
b)
Making decisions based on past investments, regardless of future outcomes
c)
A tendency to be overly certain about one's beliefs or judgments
d)
A method to assess the long-term viability of a decision
22.
Naresh started a new job and is having some of his paycheck deposited directly into a savings account. Which of the following values BEST explains why Naresh does this on a regular basis?
a)
Inner
b)
Social
c)
Physical
d)
Financial
23.
You go to a restaurant and order a big meal. Even though you’re full, you keep eating because it was expensive. What is this called?
a)
Mental Accounting
b)
Sunk Cost Fallacy
c)
FOMO
d)
The Endowment Effect
24.
Which of the following is TRUE about cognitive biases?
a)
It is easy to recognize when cognitive biases are influencing our own decisions
b)
There is rarely anything you can do to combat a cognitive bias’ influence
c)
There are only a handful of cognitive biases that exist
d)
Awareness is often the first step to overcoming the influence of a cognitive bias
25.
Mina wants to start using an investment app that all of her friends are raving about. She hasn’t done any research on the app, but she trusts her friends’ judgment. At home, Mina’s mom points out that Mina is being influenced by FOMO and herd mentality. All of the following are things Mina can do to overcome these cognitive biases EXCEPT…
a)
Take time to reflect and identify why she is so eager to use the app
b)
Watch a positive video about the app, download the app, and start using it that day
c)
Ask people outside her friend group for their opinions and perspectives
d)
Seek out reviews that talk about the disadvantages of using the app
100 %
