WorksheetsBehavioral Economics
Total questions: 15
Worksheet time: 8mins
Your cousin Todd tells you that he made a budget in his personal finance class and used his values to decide how he wants to use his money. What does Todd mean by this?
Todd reviewed his savings account balance to decide how to budget his money.
Todd asked his friends how they thought he should budget his money.
Todd identified what is important to him and used that knowledge to decide how to use his money
Todd made his budget based on his favorite social media influencer's advice.
Behavioral economists study high school graduates whereas traditional economists study college graduates.
Behavioral economists have meetings with traditional economists in order to reach conclusions about people.
Both types of economists view people the same.
Behavioral economists view people as irrational beings whereas traditional economists view people as completely rational beings.
Businesses can exploit customers by placing cognitive bias in their advertising.
Businesses cannot use cognitive bias to their advantage.
Businesses can increase their prices to attract customers with low income.
Businesses can stop all advertising.
Compares the economies of different counties in the western hemispere.
Tricks consumers into thinking they are getting a good deal on purchases.
Explains why shoppers search for bargains.
Examines why people act irrationally when it comes to money.
The value of your stock portfolio.
You go to a movie and it's terrible. There is no plot. The graphics look like they were created by amateurs. It's probably the worst movie you have ever seen but you refuse to leave before it's over because you paid for the ticket and cannot get a refund. This is an example of...
Arnold owns a Pikachu card that he keeps in mint condition. Arnold feels confident that his card is worth $500. However, when Arnold sees a similar Pikachu card at the game store listed at $500 he tells his friend that he would never pay that much for that card. This is an example of....
Overprecision bias
Cognitive awareness
Overestimation bias
Aaron has his heart set on buying a Real Team Oval Class skateboard. Aaron's grandmother offered to pay half for the skateboard, but she wants Aaron to buy the best skateboard available. Aaron shows his grandmother several positive reviews on the on Real Team skateboard, but he doesn't look at or show her the negative reviews. Aaron's tendency to search for, interpret, favor, and recall information that confirms his preexisting beliefs and values is an example of...
Fear of Missing Out
Biased Decision Making
The Endowment Effect
Angelica, Clementine and Johnboy took a skiing trip to Vermont. They all took pictures and posted them to social media throughout the weekend, telling everyone how much fun they were having. Celeste got seriously bummed as she read the posts and viewed the pictures while staying home and doing chores. Celeste is suffering from...
The mopping blues
Tik-Tok withdrawal
Friendship avoidance
Mandy treats money differently depending on how she received it. Mandy's aunt gives here $20 a week and Mandy spends it without any thought. However, Mandy babysits on weekends and she is careful to budget and save that money. This practice of categorizing money and assets into separate mental accounts based on subjective criteria is known as...
Foolish Accounting
Gifts vs. work Accounting
Practical Accounting
Researching stock before buying.
Paying full price for all purchases
Borrowing money for purchase transactions.
The tendency to overestimate the value or benefits of something is...
Overestimation
Overconfidence
Very foolish
The Endowment Effect
Someone holds onto a losing stock hoping that it increases in price. This is an example of...
Short Sells
Market Value
Gain Aversion
Loss Aversion
The tendency to overestimate one's own abilities and underestimate the likelihood of negative outcomes is...
Fear of Missing Out
Mental Accounting
Overconfidence Bias
Underconfidence Bias
The way in which you behave in social settings
The way you impact how other people behave in social settings
How much money you have in the bank
