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Your Brain and Money Vocabulary

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence?

a)

Endowment Effect

b)

Confirmation Bias

c)

Herd Mentality

d)

Overconfidence Bias

2.

What is the tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere?

a)

Hedonic Adaptation

b)

FOMO

c)

Overconfidence Bias

d)

Loss Aversion

3.

Oliver often feels anxious that his friends might be having fun at a party he didn't attend. What is this tendency called?

a)

Hedonic Adaptation

b)

FOMO

c)

Overconfidence Bias

d)

Loss Aversion

4.

Overestimation is defined as:

a)

An accurate assessment of a situation

b)

An assessment that is lower than the actual value

c)

An assessment that is higher than the actual value

d)

A complete misunderstanding of a situation

5.

Overprecision means:

a)

A tendency to be more confident than correct in one's beliefs or judgments.

b)

A tendency to underestimate the time required to complete a task.

c)

A tendency to overestimate the likelihood of positive outcomes.

6.

What is Social Media Marketing?

a)

A strategy to connect with audiences using social media platforms

b)

A type of traditional marketing using print media

c)

A method of marketing through television commercials

d)

A form of direct mail marketing

7.

Sunk Costs are:

a)

Costs that have already been incurred and cannot be recovered

b)

Future costs that will be incurred

c)

Costs that can be recovered

d)

Costs that are variable

8.

Olivia invested in a project last year, and the money she spent cannot be recovered. These are known as:

a)

Sunk Cost Fallacy

b)

Sunk Costs

c)

Overestimation

d)

Loss Aversion

9.

The Sunk Costs Fallacy is:

a)

a decision-making error where past investments influence current decisions

b)

a strategy to recover lost investments

c)

an economic principle that focuses on future costs

d)

a method to calculate sunk costs

10.

Abigail is researching for her school project on climate change. She tends to only look for articles and data that support her belief that human activity is the primary cause, while ignoring studies that suggest natural factors also play a role. What is this tendency called?

a)

Confirmation Bias

b)

Endowment Effect

c)

FOMO (Fear of Missing Out)

d)

Overconfidence Bias

11.

Larry believes he is an excellent driver and far superior to others on the road despite several tickets and close calls. What bias is Larry exhibiting?

a)

Confirmation Bias

b)

Overestimation

c)

Overprecision

d)

Herd Mentality

12.

What best describes sunk cost fallacy?

a)
Abandoning a project due to lack of resources
b)
Investing in a new opportunity based on past success
c)
Continuing an endeavor because of previously invested resources, despite the likelihood of future losses.
d)
Continuing a project because of new potential benefits
13.

A subconscious error in thinking that leads to irrational decision making is called a _______

a)

Cognitive Bias

b)

Confirmation Bias

c)

Hedonic Adaptation

d)

Overnight Test

14.

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)

Social Media Marketing

b)

Sunk Costs Fallacy

c)

Endowment Effect

d)

Overnight Test

15.

Abbie decided not to try a new activity because of fear of embarrassment. Abbie is experiencing _____.

a)

Overprecision

b)

Herd Mentality

c)

Loss Aversion

d)

Hedonic Adaptation