This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine two scenarios:Scenario 1:You see a rare sports card being sold for $ 500 in a store but choose not to buy it because you think it's too expensive. Scenario 2:You find a rare sports card worth $ 500 in your parents' attic. Rather than sell it, you choose to put it in a case and display it in your room. In scenario 1, you are putting more value on your $ 500 than the card. In scenario 2, you are putting more value on your card than the $ 500. This is an example of what? A) Fear of missing out. B) Overconfidence. C) Endowment effect. D) Confirmation bias. Show Answer Correct Answer: C) Endowment effect. 2. Decoy pricing asks the question ..... A) Why do we feel more strongly about one option after a third one is added?. B) Why do we value items more if they belong to us?. C) Why does paying without physical cash increase spending?. D) Why do we support opinions as they become more popular?. Show Answer Correct Answer: A) Why do we feel more strongly about one option after a third one is added?. 3. Which of the following best describes what a cognitive bias? A) The belief that a person should change their opinions when new facts arise. B) A rational decision that is based on research and facts. C) An error in the way we think that can influence our decisions. D) The belief that we are right until someone provides information that contradicts our belief. Show Answer Correct Answer: C) An error in the way we think that can influence our decisions. 4. What is the term for refusing to sell something for more than we paid for it? A) The endowment effect. B) The sunk cost fallacy. C) Transaction utility. D) Mental accounting. Show Answer Correct Answer: A) The endowment effect. 5. People under the age of 30 make up ..... of all those who experience FOMO. A) 15%. B) 31%. C) 49%. D) 56%. Show Answer Correct Answer: D) 56%. 6. FOMO (Fear of Missing Out) is ..... A) Feeling anxiety/fear that an exciting/ interesting event may happen w/o you. B) Fear of Mediating Outside in undesirable weather. C) Conforming to the behaviors and beliefs of the people around you. D) Seeing old pictures of social events that you were unable to attend. Show Answer Correct Answer: A) Feeling anxiety/fear that an exciting/ interesting event may happen w/o you. 7. What does FOMO stand for? A) Fear of More Obligations. B) Fear of Missed Opportunities. C) Finding Our Magic Opportunity. D) Fear of Missing Out. Show Answer Correct Answer: D) Fear of Missing Out. 8. After learning about hedonic adaptation, Tamara wants to spend her money more wisely. Which of the following might help her do so? A) Purchasing a dress after seeing an ad on social media. B) Buying a new laptop even though her current one still works well. C) Donating money to a charity that supports a cause she cares about. D) Getting a new phone accessory for her phone case. Show Answer Correct Answer: C) Donating money to a charity that supports a cause she cares about. 9. The feeling of apprehension that one is either not in the know or missing out on information, events, experiences, or life decisions that could make one's life better. A) Fear of missing out. B) Herd mentality. C) Loss aversion. D) Confirmation bias. Show Answer Correct Answer: A) Fear of missing out. 10. Which of the following is TRUE about cognitive biases? A) There are only a handful of cognitive biases that exist. B) Awareness is the first step to overcoming the influence of a cognitive bias. C) It is easy to recognize when cognitive biases influence our own decisions. D) There is rarely anything you can do to combat a cognitive bias' influence. Show Answer Correct Answer: B) Awareness is the first step to overcoming the influence of a cognitive bias. 11. You ordered takeout. When you get home, the order is wrong and you don't like the food. However, you eat it anyway to "get your money's worth." This example of loss aversion is called the ..... A) Sunk cost fallacy. B) Endowment effect. C) Dunning Kruger effect. D) Hunger games. Show Answer Correct Answer: A) Sunk cost fallacy. 12. Term refers to an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value A) Endowment effect. B) Herd mentality. C) Priming. D) Availability heuristic. Show Answer Correct Answer: A) Endowment effect. 13. Life Values are ..... A) The tangible aspects of life, the external world, our physical health and well-being. B) The principles in life that are important to you. C) Our personal identity (how we see ourselves) and our social identity (how we believe others see us). D) Principles that are important to you because of the community in which you live. Show Answer Correct Answer: B) The principles in life that are important to you. 14. The feelings of anxiety that arise from the belief that you may be missing out on rewarding experiences that others are having A) The Bandwagon Effect. B) Herd Mentality. C) The Endowment Effect. D) Fear of Missing Out (FOMO). Show Answer Correct Answer: D) Fear of Missing Out (FOMO). 15. What is the term for assigning more value to things we already own? A) The endowment effect. B) The sunk cost fallacy. C) Transaction utility. D) Mental accounting. Show Answer Correct Answer: A) The endowment effect. 16. What are the top two causes of most people's FOMO? A) Food and jewelry. B) Events/parties and travel. C) Events/parties and travel. D) Shoes and clothes. Show Answer Correct Answer: B) Events/parties and travel. 17. The tendency people have to be more confident in their own abilities, such as driving, teaching, or spelling, than is objectively reasonable A) Overconfidence Bias. B) The Bandwagon Effect. C) Confirmation Bias. D) Loss Aversion. Show Answer Correct Answer: A) Overconfidence Bias. 18. How many determinants affecting the elasticity of the behavioral economics model? A) 1. B) 2. C) 3. D) 4. E) 5. Show Answer Correct Answer: D) 4. 19. The irrational ways that we process information & make decisions using our own perspective and incomplete information. A) Cognitive biases. B) Hedonic Adaptation. C) The Endowment Effect. D) Overprecision. Show Answer Correct Answer: A) Cognitive biases. 20. The tendency to prefer avoiding losses to acquiring equivalent gains A) Endowment affect. B) Sunk costs. C) Loss aversion. D) Confirmation bias. Show Answer Correct Answer: C) Loss aversion. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 6Behavioral Economics Quiz 7Behavioral Economics Quiz 8Behavioral Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books