This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This technique consists of giving more weight to the information we provide to the Client in order to break the idea they have regarding their credit: A) Framing. B) Reciprocity. C) Anchorage. D) None of above. Show Answer Correct Answer: C) Anchorage. 2. Which of the following is not an example of a 'nudge': A) Displaying posters around the school about healthy eating choices. B) Putting fruit and other healthy snacks at the front counter of the school canteen where they are visible. C) Charging students a 'levy' for unhealthy food options so they are paying relatively more. D) Offering smaller portions for the unhealthy food options. Show Answer Correct Answer: C) Charging students a 'levy' for unhealthy food options so they are paying relatively more. 3. Name the Color BLUE A) Blue. B) Green. C) Yellow. D) Red. Show Answer Correct Answer: D) Red. 4. Name the Color RED A) Blue. B) Green. C) Yellow. D) Red. Show Answer Correct Answer: B) Green. 5. Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket? A) It would initially increase, then return to a baseline level. B) It would remain at a baseline level, then increase over time. C) It would initially decrease, then return to a baseline level. D) It would remain at a baseline level, then decrease over time. Show Answer Correct Answer: A) It would initially increase, then return to a baseline level. 6. You've been offered $ 500 for your grandmother's diamond earrings, but you know that holing on to them is worth so much more than money. A) Confirmation bias. B) Endowment effect. C) Fear of missing out. D) Sunk cost. Show Answer Correct Answer: B) Endowment effect. 7. The use of social media platforms and websites to promote a product or service A) Confiramtion bias. B) Sunk cost fallacy. C) Social media marketing. D) Overprecision. Show Answer Correct Answer: C) Social media marketing. 8. Research done on peoples' salaries and happiness levels has shown that ..... A) Most people are satisfied with their current annual salaries. B) Increasing your annual salary is guaranteed to increase your long-term happiness. C) Humans typically become accustomed to how much they earn and eventually want more. D) Most people need to earn at least $ 200, 000 a year in order to be happy. Show Answer Correct Answer: C) Humans typically become accustomed to how much they earn and eventually want more. 9. You are a 17 year-old driver who has been a passenger in a car for your entire life. You also recently passed the written driving test and have 6 hours of behind-the-wheel experience. You consider yourself an above average driver. What kind of economic behavior is this? A) Endowment Effect. B) Confirmation Bias. C) Overconfidence Bias. D) Cognitive Bias. Show Answer Correct Answer: C) Overconfidence Bias. 10. You often spend more money due to FOMO A) True. B) False. Show Answer Correct Answer: A) True. 11. The tendency to put more value on things you already own A) Herd mentality. B) Endowment effect. C) Loss aversion. D) Hedonic adaption. Show Answer Correct Answer: B) Endowment effect. 12. Protect people from loss is ..... A) Usually an insurance which makes more people want to buy a product. B) Annually at a certain time of the year. C) A type of pressure to make people buy. D) None of above. Show Answer Correct Answer: A) Usually an insurance which makes more people want to buy a product. 13. Financial values are ..... A) Principles in life that are important to you. B) Principles that are important to you the community in which you live. C) The tangible aspects, the external world, physical health and well-being. D) These values reflect what we think or believe about money. Show Answer Correct Answer: D) These values reflect what we think or believe about money. 14. Informed decision is best described as: A) Having access to irrelevant and inaccurate information. B) Having 'imperfect information'. C) Being able to determine costs of decisions. D) Weighing up decisions to make choices that maximise satisfaction. Show Answer Correct Answer: D) Weighing up decisions to make choices that maximise satisfaction. 15. Going to the movies and realizing within the first 30 minutes that it's not going to be a good one. A) Loss aversion. B) Sunk costs. C) Confirmation bias. D) Fear of missing out. Show Answer Correct Answer: B) Sunk costs. 16. What is mental accounting? A) Separating money into imaginary categories in our mind. 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) Separating money into imaginary categories in our mind. 17. Refers to an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value A) Confirmation Bias. B) Endowment Effect. C) Fear of Missing Out (FOMO). D) Loss Aversion. Show Answer Correct Answer: B) Endowment Effect. 18. You are shopping on Amazon for a new pair of shoes. You find the perfect pair, beneath the picture is text that says "Hurry! only 1 left in stock." Which loss aversion strategy is being used? A) Trials and Samples. B) Buy now, Get free. C) Scarcity and Urgency. D) Coupons. Show Answer Correct Answer: C) Scarcity and Urgency. 19. Which of these loss aversion strategies is being used in the hulu add (picture on the left)? A) Free Shipping. B) Coupons. C) Loss aversion. D) Free Trials and Samples. Show Answer Correct Answer: D) Free Trials and Samples. 20. The Fear of Missing Out, or FOMO, is ..... A) The effect of feeling a loss more than an equal gain. B) The anxiety that an interesting or exciting event is happening without you. C) Placing higher value on things you own. D) The opposite of YOLO (You Only Live Once). Show Answer Correct Answer: B) The anxiety that an interesting or exciting event is happening without you. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 6Behavioral Economics Quiz 7Behavioral Economics Quiz 8Behavioral Economics Quiz 9Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books