This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Watch the video and tell me how many times players wearing white pass the basketball A) 5. B) 10. C) 15. D) 20. Show Answer Correct Answer: C) 15. 2. Reasons given for why we like to buy more stuff include all of the following EXCEPT: A) It makes us wanting more. B) It feels good. C) We cannot help it. D) We think we NEED it. Show Answer Correct Answer: A) It makes us wanting more. 3. All of the following explain why humans might "follow the herd" EXCEPT ..... A) People prefer having opinions that are very different from those of others. B) It can be uncomfortable standing out from the crowd. C) Humans evolved to stick with the herd to survive. D) Fighting social pressure can be difficult to do. Show Answer Correct Answer: A) People prefer having opinions that are very different from those of others. 4. This technique seeks to make the Client aware of the expenses they have incurred and will not be able to recover: A) Sunk cost. B) Gradient Meta Effect. C) Risk aversion. D) Cognitive overload. Show Answer Correct Answer: A) Sunk cost. 5. What is the sunk cost fallacy? A) Continuing with a decision because of the time or money already invested. B) Assigning more value to things we already own. C) Refusing to sell something for more than we paid for it. D) Feeling the need to get 'our money's worth'. Show Answer Correct Answer: A) Continuing with a decision because of the time or money already invested. 6. Suggests that instrumental activity is kept at a high level by restricting access to the reinforcer A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. Show Answer Correct Answer: B) Response-deprivation hypothesis. 7. Certain reinforcers are linked and affecting the price of one affects the consumption of the other A) Link to complementary commodity. B) Income level. C) Price range. D) Availability of substitute. Show Answer Correct Answer: A) Link to complementary commodity. 8. Janet has a snowboard she doesn't use anymore, but loss aversion has made her question whether or not she should sell it. Her friend Jack suggests she use the Overnight Test. Which of the following scenarios demonstrates the strategy she's using? A) Imagine the snowboard was replaced with cash, then make a plan about how to spend the cash. B) Imagine the snowboard was replaced with cash, then figure out how to keep the cash and get her snowboard back. C) Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard. D) Imagine the snowboard was replaced with cash, then figure out how to use the cash to get her snowboard back. Show Answer Correct Answer: C) Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard. 9. Which step requires you to evaluate the results of your choice? A) Sift. B) Study. C) Select. D) None of above. Show Answer Correct Answer: B) Study. 10. What is the conventional wisdom that most economists believed in? A) Humans always make the best decisions to maximize their happiness. B) Humans make predictable financial mistakes. C) Humans are perfectly rational beings. D) Humans can remove emotions from decision-making. Show Answer Correct Answer: A) Humans always make the best decisions to maximize their happiness. 11. What is one thing you would NOT do if you are trying to decrease social media influences in your life? A) Spend more time playing chess with friends. B) Go to the gym. C) Increase your time on SnapChat and TikTok. D) Read a book. Show Answer Correct Answer: C) Increase your time on SnapChat and TikTok. 12. Peter can choose from two retirement accounts. Fearing a loss, he opts for the more conservative one. This is a type of A) Confirmation Bias. B) Overconfidence. C) Loss Aversion. D) Fear of Missing Out (FOMO). Show Answer Correct Answer: C) Loss Aversion. 13. Which of the following is an example of confirmation bias? A) Looking for different sources on the same news story or topic. B) Reading articles from a variety of news sources, rather than just one. C) Looking only for articles that confirm your views on an issue. D) None of above. Show Answer Correct Answer: C) Looking only for articles that confirm your views on an issue. 14. People are compelled to buy MORE stuff for all the following reasons EXCEPT ..... A) The media portrays that the more stuff we have, the happier we will be. B) We tend to want more compared to those around us. C) Scientific research proves that the more we own, the happier we tend to be. D) Once the initial novelty of a recent purchase wears off, we look to buy the next new thing. Show Answer Correct Answer: C) Scientific research proves that the more we own, the happier we tend to be. 15. You go to a restaurant and order a big meal. Even though you're full, you keep eating because it was expensive. This is an example of ..... A) Mental Accounting. B) The Sunk Cost Fallacy. C) Fear of Missing Out. D) The Endowment Effect. Show Answer Correct Answer: B) The Sunk Cost Fallacy. 16. John observed he felt the pain of losing a $ 20 bill more than he felt the joy of finding it on the sidewalk the week before. This is a result of ..... A) Endowment effect. B) Loss aversion. C) Sunk cost. D) Overconfidence . Show Answer Correct Answer: A) Endowment effect. 17. Guy bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is A) Sunk Cost Fallacy. B) Endowment Effect. C) Overconfidence. D) Herd Mentality. Show Answer Correct Answer: A) Sunk Cost Fallacy. 18. Sunk costs A) Expenses that have already been paid off after a long period of time. B) Costs that have been overdue. C) Costs that have already been incurred and cannot be recovered. D) Money that sunk overseas. Show Answer Correct Answer: C) Costs that have already been incurred and cannot be recovered. 19. The phenomenon where a real or potential loss is perceived by individuals as psychologically or emotionally more severe than an equivalent gain A) Mental Accounting. B) Bandwagon Effect. C) Loss Aversion. D) Confirmation Bias. Show Answer Correct Answer: C) Loss Aversion. 20. How an individual normally chooses to allocate their responses is the unconstrained baseline A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral bliss point. E) Minimal deviation model. Show Answer Correct Answer: D) Behavioral bliss point. ← 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