This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following does not relate to the traditional economic viewpoint of business in the economy: A) Businesses act purely for their own benefit. B) Businesses do not reallocate resources to goods and services most being demanded. C) Businesses are interested at producing at the lowest possible cost. D) Businesses are motivated by profit maximisation. Show Answer Correct Answer: B) Businesses do not reallocate resources to goods and services most being demanded. 2. Physical Values are ..... A) Our personal identity (how we see ourselves) and our social identity (how we believe others see us). B) The tangible aspects of life, the external world, our physical health and well-being. C) Principles that are important to you because of the community in which you live. D) Unrelated to how much money we actually have, these values reflect what we think or believe about money. Show Answer Correct Answer: B) The tangible aspects of life, the external world, our physical health and well-being. 3. Inner Value A) Values that relate to you[our personal identity]. B) How much we care about others. C) Values that effect others but not personally. D) Values that we personally accept overtime. Show Answer Correct Answer: A) Values that relate to you[our personal identity]. 4. Research shows that ..... of people make purchases because of FOMO. A) 25%. B) 45%. C) 60%. D) 90%. Show Answer Correct Answer: C) 60%. 5. How people can be influenced by their peers to adopt certain behaviors on a largely emotional, rather than rational basis. A) Herd mentatlity. B) Fear of missing out. C) Loss aversion. D) Confirmation bias. Show Answer Correct Answer: A) Herd mentatlity. 6. What is the average amount of money an American teenager spends on food and clothes each year? A) $ 5, 000. B) $ 4, 100. C) $ 2, 600. D) $ 1, 200. Show Answer Correct Answer: C) $ 2, 600. 7. What is the endowment effect? A) Assigning more value to things we already own. B) Refusing to sell something for more than we paid for it. C) Feeling the need to get 'our money's worth'. D) Separating money into imaginary categories. Show Answer Correct Answer: A) Assigning more value to things we already own. 8. Choose the cognitive bias that is described below:People are influenced to think an item is cheap when it's placed beside/near an item that is more expensive (also called an "anchor") A) Loss aversion. B) Anchoring. C) Bandwagon effect. D) Sunk Cost Bias. Show Answer Correct Answer: B) Anchoring. 9. True/False:The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence-sunk cost fallacy A) True. B) False. Show Answer Correct Answer: B) False. 10. Social Values A) Values that involve others around us[family, friends etc.]. B) Values on how we see our inner selves. C) How important it is to make friends. D) How much we personally think our family is worth. Show Answer Correct Answer: A) Values that involve others around us[family, friends etc.]. 11. Considers that a broad range of activities are always available to an individual A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. Show Answer Correct Answer: C) Response allocation. 12. Investing in low-return, guaranteed investments over more promising investments that carry higher risk. A) Loss aversion. B) Sunk costs. C) Confirmation bias. D) Herd mentality. Show Answer Correct Answer: A) Loss aversion. 13. Choose the cognitive bias that is described below:People fear loss more than they admire gain. Even if the probabilities are the same, they would tend towards an option where loss is minimal or 0. A) Loss aversion. B) Bandwagon Effect. C) Endowment Bias. D) Sunk Cost Bias. Show Answer Correct Answer: A) Loss aversion. 14. You go to the Jersey shore on most weekends. Then you visit that same beach on a Wednesday. You notice that the waves that Wednesday not as big as when you visit on the weekend. You're convinced that weekend waves are bigger than weekday waves. What kind of economic behavior is this? A) The Endowment Effect. B) Confirmation Bias. C) Mental Accounting. D) Loss Aversion. Show Answer Correct Answer: B) Confirmation Bias. 15. Its use is key to the development of our daily relationships as it helps us maintain effective communication. A) Linguistic intelligence. B) Emotional intelligence. C) IReNe Principles. D) None of above. Show Answer Correct Answer: A) Linguistic intelligence. 16. Costs that have already been incurred and cannot be recovered A) Sunk Costs. B) Drowning Costs. C) Losing Costs. D) Flying Costs. Show Answer Correct Answer: A) Sunk Costs. 17. This technique consists of generating positive emotions in the Client to obtain kind responses. A) Framing. B) Reciprocity. C) Anchorage. D) None of above. Show Answer Correct Answer: B) Reciprocity. 18. Emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value. A) Sunk costs. B) Confirmation bias. C) Endowment effect. D) Loss aversion. Show Answer Correct Answer: C) Endowment effect. 19. This technique is used to avoid saturating the Client with information because attention and memory are limited and this prevents all available information from being processed: A) Present bias. B) Confirmation bias. C) Cognitive Overload. D) Loss aversion. Show Answer Correct Answer: C) Cognitive Overload. 20. Social Values are ..... A) Our personal identity (how we see ourselves) and our social identity (how we believe others see us). B) Principles that are important to you because of the community in which you live. C) A social media user who has earned credibility with specific groups and who can use their large platform to market a product and get paid. D) Seeing pictures of social events that you were unable to attend. Show Answer Correct Answer: B) Principles that are important to you because of the community in which you live. ← PreviousNext →Related QuizzesEconomics QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 6Behavioral Economics Quiz 7Behavioral Economics Quiz 9Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books