This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What life value reflects the following statement?-Think more about the sustainability of their money and generally have more in reserve.-Tend to be prepared for financial emergencies. A) Inner. B) Social. C) Physical. D) Financial. Show Answer Correct Answer: D) Financial. 2. Being worried about missing out on a party that all of your friends are going to. A) Confirmation bias. B) Loss aversion. C) Sunk cost. D) Fear of missing out. Show Answer Correct Answer: D) Fear of missing out. 3. A phenomenon whereby exposure to one stimulus influences a response to a subsequent stimulus, without conscious guidance or intention A) Hedonic adaption. B) Priming. C) Herd mentality. D) Confirmation bias. Show Answer Correct Answer: B) Priming. 4. Which of the following least describes 'Rationality' as part of the traditional economic viewpoint of consumer behaviour: A) Consumers are motivated by self-interest. B) Consumers carefully weigh up expected costs and benefits of each and every decision. C) Consumers aim to minimise their utility. D) Consumers are never instinctive or emotional when making decisions. Show Answer Correct Answer: C) Consumers aim to minimise their utility. 5. The tendency to conform to the behaviors and beliefs of the people around you A) FOMO (Fear of Missing Out). B) Going along. C) Group Think. D) Herd Mentality. Show Answer Correct Answer: D) Herd Mentality. 6. You spend an entire Saturday going to car dealerships in search of a used car. You spend hours looking at cars and even test drive a few, but there are none you like that fit your budget. What is the sunk cost you should ignore when deciding whether or not to buy a car that day? A) The time it will take to drive home. B) The cost of the warranty. C) The time you spent looking for cars that day. D) The cost of the car. Show Answer Correct Answer: C) The time you spent looking for cars that day. 7. Unlike traditional economics, behavioral economics believes that A) People behave in a rational way when making economic decisions. B) There is no way to predict how people will make economic decisions. C) People will always update their viewpoints based on new information. D) People do not always behave in a rational way when making economic decisions. Show Answer Correct Answer: D) People do not always behave in a rational way when making economic decisions. 8. The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website A) Herd mentality. B) Overconfidence Bias. C) Fear of Missing Out. D) Confirmation bias. Show Answer Correct Answer: C) Fear of Missing Out. 9. Which of the following is the LEAST likely to influence a person's financial decisions? A) What their values are. B) What their family's needs are. C) What their budget is. D) What their friends want. Show Answer Correct Answer: D) What their friends want. 10. The availability of substitutes increases the sensitivity of the original item to higher prices A) Link to complementary commodity. B) Income level. C) Price range. D) Availability of substitute. Show Answer Correct Answer: D) Availability of substitute. 11. Loss Aversion A) The type of thinking that makes us thinking of what we will lose rather than what we will gain. B) Loosing something thats value but having to pay a small amount for it back. C) Loss that we dont look into. D) Gaining more; loosing less. Show Answer Correct Answer: A) The type of thinking that makes us thinking of what we will lose rather than what we will gain. 12. The tendency to regard losses as considerably more important than gains of comparable magnitude A) Loss Aversion. B) FOMO (Fear of Missing Out). C) Behavioral Economics. D) Overprecision. Show Answer Correct Answer: A) Loss Aversion. 13. Mina wants to start using an investment app that all of her friends are raving about. She hasn't done any research on the app, but she trusts her friends' judgment. At home, Mina's mom points out that Mina is being influenced by FOMO and herd mentality. All of the following are things Mina can do to overcome these cognitive biases EXCEPT ..... A) Take time to reflect and identify why she is so eager to use the app. B) Watch a positive video about the app, download the app, and start using it that day. C) Ask people outside her friend group for their opinions and perspectives. D) Seek out reviews that talk about the disadvantages of using the app. Show Answer Correct Answer: B) Watch a positive video about the app, download the app, and start using it that day. 14. Andrew wants to buy a specific model of a new car. He conducts research and finds many resources that highlight the benefits of that car model. Which cognitive bias might be influencing Andrew's decision making? A) Confirmation Bias. B) Hedonic Adaptation. C) The Sunk Cost Fallacy. D) Overconfidence. Show Answer Correct Answer: A) Confirmation Bias. 15. Behavioral economics ..... A) Tracks and examines stock market trends over a certain period of time. B) Analyzes how different economies behave over time. C) Economics and Psychology why people behave the way they do. D) Economics that studies people who make rational and objective decisions. Show Answer Correct Answer: C) Economics and Psychology why people behave the way they do. 16. The more responses or time animals have available, the less their behavior is influenced by increases in the cost of the reinforcer A) Link to complementary commodity. B) Income level. C) Price range. D) Availability of substitute. Show Answer Correct Answer: B) Income level. 17. When the client evaluates their credit situation, based on the options presented to them, the way they have lived and how they see the world today, it is based on their: A) Preferences. B) Beliefs. C) Shortcuts. D) None of above. Show Answer Correct Answer: B) Beliefs. 18. You bought a cottage in the mountains. You used to love going there but it's not as much fun as it used to be. Yet you continue to go every weekend and always regret spending time there. What kind of economic behavior is this? A) Sunk Cost Fallacy. B) Overconfidence Bias. C) Fear of Missing Out (FOMO). D) Loss Aversion. Show Answer Correct Answer: A) Sunk Cost Fallacy. 19. Mona wants to use an investment app that all of her friends are raving about. She CAN overcome FOMO, by NOT doing what? A) Take time to reflect and identify why she is so eager to use the app. B) Watch a video about app, download app, and start using it that day. C) Seek out reviews that talk about the disadvantages of using the app. D) Ask people outside her friend group for their opinions and perspectives. Show Answer Correct Answer: B) Watch a video about app, download app, and start using it that day. 20. People who experience FOMO may ..... A) Save a percentage of their paycheck each month. B) Donate money to a cause they care about. C) Go into debt to keep up with everyone else. D) Create and stick to a monthly budget. Show Answer Correct Answer: C) Go into debt to keep up with everyone else. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 6Behavioral Economics Quiz 7Behavioral Economics Quiz 8Behavioral Economics Quiz 9Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books