This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The tendency people have to be more confident in their own abilities A) Loss aversion. B) Overconfidence bias. C) Sunk cost fallacy. D) FOMO (fear of missing out). Show Answer Correct Answer: B) Overconfidence bias. 2. An "experiential purchase" is ..... A) Something that commemorates an experience, like a souvenir. B) Something that creates or enhances an experience or connects us with other people. C) Something that was made by hand rather than at a factory. D) Something that has a lot of monetary value. Show Answer Correct Answer: B) Something that creates or enhances an experience or connects us with other people. 3. Paula sees her friends' pictures of a concert that she couldn't attend because of work. She feels like an outsider. A) Paula is experiencing Fear of Missing Out (FOMO). B) Paula is experiencing Herd Mentality. C) Paula is experiencing Loss Aversion. D) Paula is experiencing Confirmation Bias. Show Answer Correct Answer: A) Paula is experiencing Fear of Missing Out (FOMO). 4. You are doing research on a new electric car that you are interested in buying. You only visit the car company's website and an online message board of electric car enthusiasts to do your research. This strategy may lead to ..... A) Herd mentality. B) The endowment effect. C) Confirmation bias. D) Loss aversion. Show Answer Correct Answer: C) Confirmation bias. 5. All of the following are types of overconfidence bias EXCEPT ..... A) Overplacement. B) Overestimation. C) Overprecision. D) Overgeneralization. Show Answer Correct Answer: D) Overgeneralization. 6. Amber gets her news from social media. Recently she has noticed that most of the people on her timeline share the same or similar types of articles. She mostly agrees with the news her friends share. What should Amber do to challenge her confirmation bias? A) Research other sources. B) Look beyond the posts her friends share or like. C) Look for articles that support different views on an issue. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Argues that you can use a high-probability response as a reinforcer of a low-probability response A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. Show Answer Correct Answer: A) Premark principle. 8. Sunk Cost Fallacy A) Sticking with something we've already put our time, money, and/or effort in. B) Something we've invested in was unsuccessful. C) Puting time, money, and effort in something. D) A cycle of repeated decisions economically. Show Answer Correct Answer: A) Sticking with something we've already put our time, money, and/or effort in. 9. The tendency to search for, interpret, favor and recall information in a what that confirms or supports one's prior beliefs or values. A) Confirmation bias. B) Loss aversion. C) Herd mentality. D) Sunk costs. Show Answer Correct Answer: A) Confirmation bias. 10. What is the term for feeling the need to get 'our money's worth'? A) The sunk cost fallacy. B) The endowment effect. C) Transaction utility. D) Mental accounting. Show Answer Correct Answer: A) The sunk cost fallacy. 11. It is when the Client takes a loss into account more than a gain: A) Present bias. B) Confirmation bias. C) Cognitive Overload. D) Loss aversion. Show Answer Correct Answer: D) Loss aversion. 12. Buy now, get it % off A) Tricks you into not giving you anyhing a % off. B) Pressures you to buy it since its in a limited window of opportunity. Show Answer Correct Answer: B) Pressures you to buy it since its in a limited window of opportunity. 13. What is the main idea behind behavioral economics? A) Humans make predictable financial mistakes. B) Humans always make the best financial decisions. C) Humans are perfectly rational beings. D) Humans can remove emotions from decision-making. Show Answer Correct Answer: A) Humans make predictable financial mistakes. 14. Confirmation bias is ..... A) The tendency to seek out information that supports our existing beliefs. B) The tendency to value something more because you own it. C) The belief that we are better at something than we actually are. D) The belief that we should do something because our friends are doing it. Show Answer Correct Answer: A) The tendency to seek out information that supports our existing beliefs. 15. While researching Apple, Remy tends to focus on positive stories about their profits instead of stories about poor sales A) Remy is experiencing the Endowment Effect. B) Remy is experiencing Overconfidence Bias. C) Remy is experiencing Herd Mentality. D) Remy is experiencing Confirmation Bias. Show Answer Correct Answer: D) Remy is experiencing Confirmation Bias. 16. All of the following are types of values that can impact your financial decisions EXCEPT ..... A) Social values. B) Inner values. C) Physical values. D) Spiritual values. Show Answer Correct Answer: D) Spiritual values. 17. Buy now get it tomorrow is common loss aversion strategy found on webistes A) True. B) False. Show Answer Correct Answer: A) True. 18. Which of the following is an example of loss aversion? A) Selling your house at a loss to find a better investment opportunity. B) Deciding against selling your house below what you purchased it for. C) Only looking at sources that reinforce a higher selling value for your home. D) Believing that your house is worth more than it is because you own it. Show Answer Correct Answer: B) Deciding against selling your house below what you purchased it for. 19. The law of diminishing marginal utility states that: A) Each additional unit of a good or service that is consumed generates more utility (satisfaction). B) The second unit of something consumed provides more satisfaction than the first. C) Total utility grows more rapidly with each additional unit consumed. D) Each additional unit of a good or service that is consumed generates less utility (satisfaction). Show Answer Correct Answer: D) Each additional unit of a good or service that is consumed generates less utility (satisfaction). 20. Physical Values A) Our inner health and how we are doing things. B) Our personal well being and how we are looked upon from the outside. C) Values that have to do with how much activities we are doing everyday. D) Physical education and how we can take care of other. Show Answer Correct Answer: B) Our personal well being and how we are looked upon from the outside. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 7Behavioral Economics Quiz 8Behavioral Economics Quiz 9Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books