This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Depending on the way the information is presented, we will choose the option that best suits us, referring to: A) Preferences. B) Beliefs. C) Shortcuts. D) None of above. Show Answer Correct Answer: A) Preferences. 2. In the court trial deliberations, Juror Seven says, "There are still eleven of us who think he's guilty. You're alone." His attempt to use numbers to persuade Eight is: A) Confirmation bias. B) Framing Bias. C) Bandwagon effect. D) Clustering illusion. Show Answer Correct Answer: C) Bandwagon effect. 3. Overprecision is ..... A) The exaggerated certainty that our beliefs are correct. B) The overvaluing of our own abilities relative to everyone else. C) The belief that we are above average without supporting evidence. D) The expectation that other people place upon us to be accurate all the time. Show Answer Correct Answer: A) The exaggerated certainty that our beliefs are correct. 4. The phrase "I will tell you the advantages of staying up to date/regularizing at this time" corresponds to the technique of: A) Framing. B) Reciprocity. C) Anchorage. D) None of above. Show Answer Correct Answer: A) Framing. 5. The.....are quick exits between Advisor-Client that do not allow for analysis, understanding and detection of needs. A) Preferences. B) Beliefs. C) Shortcuts. D) None of above. Show Answer Correct Answer: C) Shortcuts. 6. Which of the following loss aversion strategies is this ad using? A) Progress Bar. B) Protect People From Loss. C) Coupon. D) Free Trials & Samples. Show Answer Correct Answer: B) Protect People From Loss. 7. The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere A) FOMO (From Oklahoma Mas Ocra). B) FOMO (Fear of not being at the situation). C) FOMO (Fear of Mediocre Oysters). D) FOMO (Fear of Missing Out). Show Answer Correct Answer: D) FOMO (Fear of Missing Out). 8. Which step requires you to act on your choice? A) Study. B) Sift. C) Select. D) None of above. Show Answer Correct Answer: C) Select. 9. Suggests that we will attempt to minimize the total deviation of the two responses from the unrestricted baseline A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. E) Minimal deviation model. Show Answer Correct Answer: E) Minimal deviation model. 10. You drive 10 miles to buy a mini blue tooth speaker which is on sale for $ 15 (that's $ 10 less than the price of the same speaker at local store. A week later, you learn that the same store which is 10 miles away has a $ 1, 000 notebook computer on sale for $ 10 less than it is at the local store. You decide to buy the notebook at the closer local store. What kind of economic behavior is this? A) The Endowment Effect. B) Loss Aversion. C) Transaction Utility. D) Confirmation Bias. Show Answer Correct Answer: C) Transaction Utility. 11. Which of the following is NOT a sign of cognitive bias? A) Making decisions based on a thorough evaluation of the evidence. B) Attributing other people's success to luck. C) Constantly blaming others if things don't go your way. D) Assuming you are always correct. Show Answer Correct Answer: A) Making decisions based on a thorough evaluation of the evidence. 12. You are going to have a garage sale to earn some cash. You can't decide if you should sell your old Nintendo 64 and games or keep them. You decide to use the overnight test. Which best describes the steps of the overnight test? A) Put the N64 in a box in your garage for the garage sale. In the morning, decide if you want to keep it there or bring it back in the house. B) Sell the N64 to your sibling, then decide in the morning if you want to keep the cash or buy it back. C) Imagine that while you are sleeping, someone replaces your N64 with cash. In the morning, would you be happier keeping the cash or the N64?. D) Since you aren't sure, sleep on it and decide the morning of the garage sale. Show Answer Correct Answer: C) Imagine that while you are sleeping, someone replaces your N64 with cash. In the morning, would you be happier keeping the cash or the N64?. 13. Free trials and samples are examples of sunk costs A) True. B) False. Show Answer Correct Answer: B) False. 14. What's one reason Instagram decided to let companies sell products to users within the app? A) Instagram wants big brands using the app, not individuals. B) Instagram was bought by Facebook & this was part of the deal. C) Instagram charges companies a selling fee. D) Instagram is rebranding as a shopping platform. Show Answer Correct Answer: C) Instagram charges companies a selling fee. 15. You overhear your friend Ginny say, "I made a budget for myself in my personal finance class and used my values to decide how I want to use my money." What does Ginny mean by this? A) Ginny used the value of her bank account balance to decide how to use her money. B) Ginny asked her friends and family for advice to decide how to use her money. C) Ginny identified what is important to her and used that knowledge to decide how to use her money. D) Ginny followed recommendations she saw on social media to decide how to use her money. Show Answer Correct Answer: C) Ginny identified what is important to her and used that knowledge to decide how to use her money. 16. True/False:The tendency people have to be more confident in their own abilities-overconfidence bias A) True. B) False. Show Answer Correct Answer: A) True. 17. Which step requires you to gather information about alternative choices you could make? A) Study. B) Search. C) Sift. D) None of above. Show Answer Correct Answer: B) Search. 18. This technique breaks the bias of settling for a smaller current reward than expecting a larger future reward: A) Present bias. B) Confirmation bias. C) About cognitive load. D) Loss aversion. Show Answer Correct Answer: A) Present bias. 19. Searching online for the answer to a statement that your friend made to prove that your point was right. A) Fear of missing out. B) Endowment costs. C) Loss aversion. D) Confirmation bias. Show Answer Correct Answer: D) Confirmation bias. 20. People who win the lottery tend to return to their original levels of happiness after the novelty of winning wears off. A) This is an example of the Endowment Effect. B) This is an example of Confirmation Bias. C) This is an example of Hedonic Adaptation. D) This is an example of Herd Mentality. Show Answer Correct Answer: C) This is an example of Hedonic Adaptation. ← 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