This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the term for continuing with a decision because of the time or money already invested? A) The sunk cost fallacy. B) The endowment effect. C) Transaction utility. D) Mental accounting. Show Answer Correct Answer: A) The sunk cost fallacy. 2. Naresh started a new job and is having some of his paycheck deposited directly into a savings account. which of the following values best explains why Naresh does this on a regular basis? A) Inner. B) Social. C) Physical. D) Financial. Show Answer Correct Answer: D) Financial. 3. 'Behavioural economics' is best described as: A) A mix of economics and psychology to improve our understanding of consumers. B) Having different assumptions of consumer behaviour than traditional viewpoints. C) Explaining how consumers actually behave. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Based on the belief that because people are easily influenced by emotions and biases, they are more likely to make unwise and irrational decisions with their money. A) Traditional Economics. B) Behavioral Economics. C) Personal Economics. D) Cognitive Bias. Show Answer Correct Answer: B) Behavioral Economics. 5. When you select an option that has four items priced together, instead of just the three you need individually, that could be considered: A) Paying it Forward. B) ConfirmationBias. C) Bundling Bias. D) Nostalgia Effect. Show Answer Correct Answer: C) Bundling Bias. 6. What life value reflects the following statement?-Strong physical values might translate to overspending on material possessions if left unchecked, but could also show up in our desire for quality.-This person is willing to spend more for craftsmanship and design. A) Inner. B) Social. C) Physical. D) Financial. Show Answer Correct Answer: C) Physical. 7. What is the term for separating money into imaginary categories in our mind? A) Mental accounting. B) The endowment effect. C) The sunk cost fallacy. D) Transaction utility. Show Answer Correct Answer: A) Mental accounting. 8. FOMO A) Events that cost money and are cheap. B) Fear of missing out without spending a certain amount of money. C) Exciting or interesting events that you get to attend with your friends for free. D) The fear of missing out on exciting or interesting events. Show Answer Correct Answer: D) The fear of missing out on exciting or interesting events. 9. Phonetic skills allow us to: A) Address us with respect and cordiality to coerce the client. B) Effectively recover credits with a soft and slow voice. C) Transmit emotions through voice allowing connection with our client. D) None of above. Show Answer Correct Answer: C) Transmit emotions through voice allowing connection with our client. 10. We should NOT ignore sunk cost? A) True. B) False. Show Answer Correct Answer: B) False. 11. This technique eliminates the barrier that the Client establishes when he positively interprets those facts that basically support his opinions: A) Present bias. B) Confirmation bias. C) Cognitive Overload. D) Loss aversion. Show Answer Correct Answer: B) Confirmation bias. 12. You want to see a movie that almost everyone has seen and is raving about. What kind of economic behavior best describes this situation? A) Herd Mentality. B) Sunk Cost Fallacy. C) Congitive Bias. D) Endowment Effect. Show Answer Correct Answer: A) Herd Mentality. 13. People are compelled to buy MORE stuff for all of 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 items 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 items we own, the happier we tend to be. 14. The pain of losing a $ 20 bill is felt more than the joy of finding it. This is a result of ..... A) Loss aversion. B) Overconfidence. C) Sunk cost. D) Endowment effect. Show Answer Correct Answer: A) Loss aversion. 15. When a person believes they are better at something than they actually are A) Overnight test. B) Overconfidence bias. C) Overplacement. D) Cognitive bias. Show Answer Correct Answer: B) Overconfidence bias. 16. When using social media, it's important to remember that ..... A) Social media ads are trying to get you to buy stuff you NEED, not want. B) Marketers have your best interests in mind and want you to be financially responsible. C) People typically only post about the best parts of their lives on social media. D) The more likes a post has, the more trustworthy and accurate the information is likely to be. Show Answer Correct Answer: C) People typically only post about the best parts of their lives on social media. 17. The Bean/Rock Game caused us to differentiate between A) Needs and wants. B) Social and emotional needs. C) Research topics and experiences. D) Rocks and beans. Show Answer Correct Answer: A) Needs and wants. 18. A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using? A) Coupons. B) Buy now, get free shipping. C) Free trials and samples. D) Scarcity and urgency. Show Answer Correct Answer: D) Scarcity and urgency. 19. Cost that has already been incurred and cannot be recovered. A) Loss aversion. B) Endowment effect. C) Sunk costs. D) Fear of missing out. Show Answer Correct Answer: C) Sunk costs. 20. What is the name of the tendency to assign more value to the 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. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral 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