WorksheetsBehavioral Economics and Cognitive Bias Quiz
Total questions: 16
Worksheet time: 8mins
What is Behavioral Economics?
The study of how people make decisions based on their emotions.
The subfield of economics that applies psychological insights into human behavior and to explain economic decision making.
The analysis of market trends and their impact on the economy.
The study of financial markets and investment strategies.
What is Cognitive Bias?
A conscious error in thinking that leads to rational decision making.
A subconscious error in thinking that leads to irrational decision making.
A deliberate attempt to mislead others.
A method of improving decision making.
What is Confirmation Bias?
The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence.
The tendency to seek out new and diverse information.
The ability to confirm the accuracy of information.
The process of verifying facts before making a decision.
What is the Endowment Effect?
The tendency to undervalue things you already own.
The tendency to put more value on things you already own.
The tendency to value things equally regardless of ownership.
The tendency to devalue things you do not own.
What does FOMO (Fear of Missing Out) refer to?
The fear of losing money in investments.
The anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website.
The fear of making wrong decisions.
The fear of public speaking.
What is the term for the tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event?
Herd Mentality
Loss Aversion
Overconfidence Bias
Hedonic Adaptation
What does "Herd Mentality" refer to?
The tendency to regard losses as considerably more important than gains of comparable magnitude
The tendency to conform to the behaviors and beliefs of the people around you
The tendency to be more confident in their own abilities
The tendency to return to a baseline level of happiness
What is "Loss Aversion"?
The tendency to regard losses as considerably more important than gains of comparable magnitude
The tendency to conform to the behaviors and beliefs of the people around you
The tendency to be more confident in their own abilities
The tendency to return to a baseline level of happiness
What does "Overconfidence Bias" mean?
The tendency to regard losses as considerably more important than gains of comparable magnitude
The tendency to conform to the behaviors and beliefs of the people around you
The tendency to be more confident in their own abilities
The tendency to return to a baseline level of happiness
What is "Overestimation"?
When a person believes they are better at something than they actually are
The tendency to conform to the behaviors and beliefs of the people around you
The tendency to be more confident in their own abilities
The tendency to return to a baseline level of happiness
What is the "Overnight Test" used for?
To determine if you prefer to keep the cash or buy the item back
To measure the tendency to conform to the behaviors and beliefs of the people around you
To assess the tendency to be more confident in their own abilities
To evaluate the tendency to return to a baseline level of happiness
What is the term for when a person mistakenly believes they are better than others?
Overprecision
Social Media Marketing
Sunk Costs
Overplacement
What does "Overprecision" refer to?
The use of social media platforms to promote a product
Costs that have already been incurred and cannot be recovered
When a person has an exaggerated certainty that an answer is correct
The tendency to make decisions based on past investments
What is the definition of "Social Media Marketing"?
The use of social media platforms and websites to promote a product or service
Costs that have already been incurred and cannot be recovered
The tendency to make decisions based on past investments
When a person mistakenly believes they are better than others
What are "Sunk Costs"?
The use of social media platforms to promote a product
Costs that have already been incurred and cannot be recovered
When a person has an exaggerated certainty that an answer is correct
The tendency to make decisions based on past investments
What is the "Sunk Cost Fallacy"?
The use of social media platforms to promote a product
Costs that have already been incurred and cannot be recovered
When a person has an exaggerated certainty that an answer is correct
The tendency to make decisions about a current situation based on what resources you have already invested in the situation
