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Behavioral Economics Concepts

Total questions: 16

Worksheet time: 8hrs 31mins

Name
Class
Date
1.

loss aversion

a)

the tendency to regard losses as considerably more important than gains of comparable magnitude

b)

when a person believes they are better at something than they actually are

c)

the use of social media plat forms and websites to promote a product or service

2.

overestimation

a)

the tendency to put more value on things you already own

b)

when a person believes they are better at something than they actually are

c)

the subconscious error in thinking that leads to irrational decision making

3.

endowment effect

a)

The use of social media plat forms and websites to promote a product or service

b)

The tendency to conform to the behaviors around you

c)

The tendency to put more value on things you already own

4.

social media marketing

a)

The use of social media platforms and website to promote a product or service

b)

costs that have already been incurred and cannot be recovered

c)

The tendency people have to be more confident in their own abilities

5.

behavioral economics

a)

The subfield of of economics that applies psychological insights into human behavior and to explain economic decision making

b)

costs that have already been incurred and cannot be recovered

c)

the tendency people have to be mor confident in their own abilities

6.

over confidence bias

a)

The tendency people have to be more confident in their own abilities

b)

the costs that have been incurred and cannot be recovered

c)

when a person has and exaggerated certainty an answer is correct

7.

over precision

a)

When a person has and exaggerated certainty an answer is correct

b)

when a person mistakenly believes they are better than others

c)

a subconscious error in thinking that leads to irrational decision making

8.

cognitive bias

a)

A subconscious error in thinking that leads to irrational decision making

b)

the tendency to regard losses

c)

when a person believes they are better at something than they actually are

9.

herd mentality

a)

The tendency to conform to the behavior and beliefs of the people around you

b)

when a person mistakenly believes they are better than others

c)

costs that have already been incurred and cannot be recovered

10.

sunk costs

a)

costs that have already been incurred and cannot be recovered

b)

when a person mistakenly believes they are better than others

c)

the tendency to return

11.

over placement

a)

When a person mistakenly believes they are better than others

b)

the tendency to regard losses as considerably mor important than gains of comparable magnitude

c)

when a person believes they are better at some thing than they actually are

12.

overnight test

a)

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

b)

when a person believes they are better at something than they actually are

c)

the tendency to put more value on things you already own

13.

confirmation bias

a)

The tendency to search for information that supports our perception and to ignore or distort contradictory evidence

b)

the tendency to put more value on things you already own

14.

sunk cost fallacy

a)

The tendency to make decision based on what resources you have already invested in the situation

b)

when a person believes they are better at something than they actually are

15.

hedonic adaptation

a)

The tendency to return to a base line level of happiness regardless of whether you go through a positive or negative experience or event

b)

The use of social media plat forms and websites to promote a product or service

16.

Fomo ( Fear of missing out)

a)

The tendency to feel anxiety/fear that an exiting or interesting event may currently be happening else where, often aroused by posts seen on a social media website

b)

The tendency to put more value on things you already own