WorksheetsBehavioral Economics Quiz
Total questions: 16
Worksheet time: 8mins
What is Behavioral Economics?
The study of market trends and financial forecasting
The subfield of economics that applies psychological insights into human behavior and to explain economic decision making
The analysis of supply and demand in various markets
The study of international trade and its effects on local economies
What is Cognitive Bias?
A conscious decision-making process
A subconscious error in thinking that leads to irrational decision making
A method of logical reasoning
A strategy for improving memory retention
What is Confirmation Bias?
The tendency to seek out information that contradicts our preconceptions
The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence
The ability to change one's mind based on new evidence
The tendency to avoid making decisions
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 you do not own
The tendency to disregard the value of owned items
What does FOMO (Fear of Missing Out) refer to?
The fear of losing money in investments
The tendency to feel 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 Hedonic Adaptation?
The tendency to remain unhappy regardless of circumstances
The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event
The tendency to become increasingly happy over time
The tendency to avoid negative experiences
What is Herd Mentality?
The tendency to act independently of others
The tendency to conform to the behaviors and beliefs of the people around you
The tendency to lead others in decision making
The tendency to avoid social interactions
What is Loss Aversion?
The tendency to seek out losses
The tendency to regard losses as considerably more important than gains of comparable magnitude
The tendency to ignore losses
The tendency to value gains more than losses
What is Overconfidence Bias?
The tendency to be less confident in one's abilities
The tendency people have to be more confident in their own abilities
The tendency to accurately assess one's abilities
The tendency to avoid taking risks
What is Overestimation?
When a person believes they are worse at something than they actually are
When a person believes they are better at something than they actually are
When a person accurately assesses their abilities
When a person underestimates their abilities
What is the Overnight Test?
A strategy used to combat loss aversion by imagining that overnight something you own has been replaced with cash, then determining whether you would prefer to keep the cash or buy the item back
A method for improving sleep quality
A test to measure cognitive abilities
A strategy for making quick decisions
What is Overplacement?
When a person accurately assesses their abilities
When a person mistakenly believes they are better than others
When a person underestimates their abilities
When a person believes others are better than them
What is Overprecision?
When a person has an exaggerated certainty that an answer is correct
When a person is unsure about their answers
When a person accurately assesses their knowledge
When a person underestimates their knowledge
What is Social Media Marketing?
The use of social media platforms and websites to promote a product or service
The study of social media trends
The analysis of social media data
The creation of social media content for personal use
What are Sunk Costs?
Costs that have already been incurred and cannot be recovered
Costs that can be recovered
Future costs that need to be planned for
Costs that are irrelevant to decision making
What is the Sunk Cost Fallacy?
The tendency to ignore past investments when making decisions
The tendency to make decisions about a current situation based on what resources you have already invested in the situation
The tendency to avoid making decisions
The tendency to focus only on future investments
