This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Overconfidence bias may lead the majority of Americans to think that they are ..... A) Below average drivers. B) Extremely poor drivers. C) Average drivers. D) Above average drivers. Show Answer Correct Answer: D) Above average drivers. 2. Putting more value on an object you own for more than its actually worth is an example of ..... A) Overconfidence. B) Endowment effect. C) Confirmation bias. D) The Fear of Missing Out (FOMO). Show Answer Correct Answer: B) Endowment effect. 3. What is transaction utility? A) The mental pleasure or pain we get from feeling like we paid less or more than something's worth. B) Assigning more value to things we already own. C) Refusing to sell something for more than we paid for it. D) Separating money into imaginary categories. Show Answer Correct Answer: A) The mental pleasure or pain we get from feeling like we paid less or more than something's worth. 4. Bliss point A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. Show Answer Correct Answer: C) Response allocation. 5. Bobby bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is A) Endowment Effect. B) Herd Mentality. C) Sunk Cost Fallacy. D) Overconfidence. Show Answer Correct Answer: C) Sunk Cost Fallacy. 6. A strategy used to combat loss aversion by imagining that overnight something you own has been replaced with cash, then determining whether you would prefer to keep the cash or buy the item back A) Overnight test. B) Sunk cost fallacy. C) Herd mentality. D) Cognitive bias. Show Answer Correct Answer: A) Overnight test. 7. The term 'Ordered preferences' is an assumption of traditional economic thinking where consumer behaviour is: A) Inconsistent over time. B) Not based on rankings. C) Revealed when consumers act on their preferences by spending their income. D) Not related to utility. Show Answer Correct Answer: C) Revealed when consumers act on their preferences by spending their income. 8. Separating money into imaginary categories in your mind A) Transaction Utility. B) Mental Accounting. C) Sunk Cost Fallacy. D) Confirmation Bias. Show Answer Correct Answer: B) Mental Accounting. 9. Which step requires you to consider your opportunity costs? A) Sift. B) Search. C) Study. D) None of above. Show Answer Correct Answer: A) Sift. 10. Which brands below are now able to sell items directly from within the instagram app? A) Toms and Supreme. B) Kylie Cosmetics and Adidas. C) Gucci and Balenciaga. D) Ray-Ban and Tommy Hilfiger. Show Answer Correct Answer: B) Kylie Cosmetics and Adidas. 11. Financial Value A) How much we think money is worth today rather than many years ago. B) Values upon items we own or will own in the future. C) What we do with our money. D) Money values and what we think about money. Show Answer Correct Answer: D) Money values and what we think about money. 12. What is a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making A) Behavioral Economics. B) Classical Economics. Show Answer Correct Answer: A) Behavioral Economics. 13. With this technique we encourage the Client to make their best effort since their credit is about to expire: A) Sunk cost. B) Gradient Meta Effect. C) Risk aversion. D) Cognitive overload. Show Answer Correct Answer: B) Gradient Meta Effect. 14. The tendency to process information by looking for, or interpreting, information that is consistent with one's existing beliefs A) Loss Aversion. B) Mental Accounting. C) Overconfidence Bias. D) Confirmation Bias. Show Answer Correct Answer: D) Confirmation Bias. 15. Which of the following is an example of how someone's PHYSICAL values can influence their financial decisions? A) Sophie likes to shop for clothes at the thrift store so that she can find good deals and save money. B) Ben puts 20% of his take home pay into a savings account, because that's what his mom does. C) Jessie gets a massage every month as a form of self-care. D) Anirudh has two job offers and decides to go with the one that will offer him more job satisfaction even though it pays less than the other job. Show Answer Correct Answer: C) Jessie gets a massage every month as a form of self-care. 16. The phenomenon where a person is reluctant to abandon a strategy or course of action because they have invested heavily in it, even when it is clear that abandonment would be more beneficial A) Endowment Effect. B) Sunk Cost Fallacy. C) Confirmation Bias. D) Bandwagon Effect. Show Answer Correct Answer: B) Sunk Cost Fallacy. 17. How has social media marketing evolved over the past few decades? A) Modern marketing urges you to make financial decisions that align with your goals. B) Modern marketing utilizes extremely detailed user data to create personalized ads for each user. C) Modern marketing makes it easy to distinguish advertising from other types of content. D) Modern marketing creates a less seamless shopping experience for consumers. Show Answer Correct Answer: B) Modern marketing utilizes extremely detailed user data to create personalized ads for each user. 18. What does the location of allocation of behavior among different options altered by constraints of instrumental conditioning procedure? A) Demande curve. B) Behavioral economics. C) Price range. D) Link to complementary commodities. Show Answer Correct Answer: A) Demande curve. 19. What year was Mrs. Hagan born? A) 1950. B) 1991. C) 1995. D) 1990. Show Answer Correct Answer: B) 1991. 20. The tendency to make decisions about a current situation based on what resources you have already invested in the situation. A) Herd Mentality. B) Confirmation Bias. C) Sunk Cost Fallacy. D) Endowment Effect. E) FOMO. Show Answer Correct Answer: C) Sunk Cost Fallacy. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 6Behavioral Economics Quiz 8Behavioral Economics Quiz 9Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books