WorksheetsUnit 1 test Finance
Total questions: 30
Worksheet time: 2hrs 22mins
Who would ever be opposed to free college tuition? Certainly no one you'd ever pay attention to.
Which is a perfect example of:
Anchoring Bias
Confirmation Bias
Outcome Bias
Negativity Bias
People are usually unaware of cognitive biases.
True
False
You are 200 pages into your Mystery Novel and you just hate it. Even though you have two weeks, you worry you won't finish a new novel on time, so you continue reading your chosen novel, bad plot or not.
The Sunk-Cost Fallacy
Confirmation Bias
The Backfire Effect
Groupthink
A bias that happens when someone is putting too much faith in his guts rather than the data or fact is called a ....
ostrich bias
overconfidence bias
outcome bias
placebo bias
The following is biased statement - True or False: Burger king makes the best fries and let me tell you why.
False
True
The following is biased statement - True or False: McDonalds' workers make me so mad because they are always telling me the milk shake machine always down.
True
False
The following is biased statement - True or False: Brushing your teeth twice a day is good for dental care.
False
True
Determine if the following study is biased.
The first 100 people at the park Thursday were asked if dogs should be off leashes in the park.
Biased
Unbiased
Determine if the following study is biased.
A hospital wants to open a gym. They ask the night-shift ER staff if they would use the gym.
Biased
Unbiased
Which of the following best describes hedonic adaptation?
The tendency to quickly return to a relatively stable level of happiness despite major positive or negative events
The tendency to never recover from negative events
The tendency to avoid new experiences
The tendency to always feel happier after positive events
Which scenario is an example of the endowment effect?
Comparing prices before buying a t-shirt
Keeping an old t-shirt because it feels special, even though you never wear it
Buying a new t-shirt because it's trendy
Donating clothes you no longer need
Which of the following best describes herd mentality?
Making decisions based on personal research
Following the actions or opinions of a larger group, often without independent thought
Ignoring social influence completely
Always disagreeing with the majority
At a concert, everyone starts clapping after the performance, so you join in even though you didn't enjoy it. This is an example of:
Endowment effect
Confirmation bias
Herd mentality
Anchoring bias
Which of the following best describes loss aversion?
The tendency to always take risks
The tendency to ignore losses completely
The tendency to feel the pain of losses more strongly than the pleasure of equivalent gains
The tendency to prefer gains over losses of equal value
Which scenario is an example of loss aversion?
Refusing to sell a stock at a loss, even though it is unlikely to recover
Buying a lottery ticket every week
Donating to charity regularly
Comparing prices before making a purchase
True or False: Loss aversion can lead people to avoid making decisions that might result in a loss, even if the potential gain is greater.
True
False
Which of the following best describes overconfidence bias?
Overestimating your abilities or the accuracy of your knowledge
Ignoring your own opinions in favor of others
Underestimating your abilities and knowledge
Believing you know less than you actually do
True or False: Overconfidence can lead people to make risky decisions without fully considering the consequences.
True
False
Which scenario is an example of overconfidence bias?
Asking for help when unsure about a topic
Double-checking your answers before submitting a test
Choosing not to participate in a competition due to lack of confidence
Assuming you will ace a test without studying because you feel smart
Which of the following best illustrates the sunk cost fallacy?
Continuing to invest money in a failing business because you have already spent a lot on it
Comparing prices before making a purchase
Refusing to buy something you don't need
Donating to charity regularly
You bought tickets to a movie, but you feel sick on the day of the show. You decide to go anyway because you already paid for the tickets. This is an example of:
Confirmation bias
Sunk cost fallacy
Loss aversion
Anchoring bias
Which of the following is an example of confirmation bias?
Always agreeing with the majority
Ignoring all information
Seeking out information that supports your existing beliefs
Changing your opinion based on new evidence
True or False: Herd mentality can cause people to make decisions they wouldn't normally make if alone.
False
True
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
A
B
C
D
What percentage of people make purchases because of FOMO?
40
50
60
70
If someone makes a purchase because of FOMO, it is usually within what time frame?
Cognitive bias is…
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
A
B
C
D
You go to a restaurant and order a big meal. Even though you’re full, you keep eating because it was expensive. This is an example of...
A) Mental Accounting
B) The Sunk Cost Fallacy
C) Fear of Missing Out
D) The Endowment Effect
A
B
C
D
