This quiz works best with JavaScript enabled. Home > Economics > Behavioral Economics > Behavioral Economics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of allowing sunk costs to impact your decision? A) Not selling a baseball card that you think is worth more because you own it. B) Continuing to watch a movie that you don't like because you paid to see it. C) Selling a stock because you see the price drop and want to avoid losses. D) Buying a new phone because you see all of your friends have that it. Show Answer Correct Answer: B) Continuing to watch a movie that you don't like because you paid to see it. 2. You spend less amount of money than usually due to FOMO A) True. B) False. Show Answer Correct Answer: B) False. 3. Michael observed he felt the pain of losing a $ 20 bill more than he felt the joy of finding it on the sidewalk the week before. This is a result of ..... A) Overconfidence. B) Sunk cost. C) Endowment effect. D) Loss aversion. Show Answer Correct Answer: D) Loss aversion. 4. You got first place in the test review in Carly's class. Carly gives you a prize worth 5$ . After class, your friend offers to buy the prize from you for $ 5. If you were affected by the endowment effect, what would you most likely do in this scenario? A) Trade the prize for the $ 5. B) Keep the prize Carly gave you. C) Keep the prize, but sell it online later for $ 10. D) Take the $ 5 and buy another prize from Carly. Show Answer Correct Answer: B) Keep the prize Carly gave you. 5. The subfield of economics that applies psychological insights into human behavior and to explain economic decision making A) Behavioral economics. B) Confirmation bias. C) Social media marketing. D) None of above. Show Answer Correct Answer: A) Behavioral economics. 6. Imani attends a town hall meeting where a tax increase is proposed to help pay for a new bridge. After the meeting, she reads Facebook comments that complain about the already high taxes in her town, which is a view that she agrees with. To avoid confirmation bias, Imani should ..... A) Avoid social media since it will influence her decision. B) Seek out comments that support the tax increase and the bridge project to provide an alternative viewpoint. C) Allow others to make the decision because she is too biased. D) Join a Facebook group that organizes citizens that are opposed to the tax increase. Show Answer Correct Answer: B) Seek out comments that support the tax increase and the bridge project to provide an alternative viewpoint. 7. Scarcity and Urgency makes you ..... A) Pressured to buy things so you dont miss your chance to get it. B) Buy something in the next few days but quickly so it wont run out. Show Answer Correct Answer: A) Pressured to buy things so you dont miss your chance to get it. 8. Marie's car has needed over $ 2000 in repairs. She resists selling it because she has spent so much money. This is ..... A) The Endowment Effect. B) Confirmation Bias. C) Overconfidence Bias. D) Sunk Cost Fallacy. Show Answer Correct Answer: D) Sunk Cost Fallacy. 9. Over 70% of people believe they are above average drivers. This is an example of (a) . A) A overconfidence bias. B) Confirmation bias. C) The endowment effect. D) FOMO. Show Answer Correct Answer: A) A overconfidence bias. 10. You just found $ 100 (that is, five $ 20 bills) on the sidewalk. You can't believe your good fortune and decide to spend it all on a frivolous, unnecessary gift for yourself. What kind of economic behavior is this? A) The Endowment Effect. B) Mental Accounting. C) Loss Aversion. D) Sunk Cost Fallacy. Show Answer Correct Answer: B) Mental Accounting. 11. People see an average of about 3, 000 advertisements or product impressions per day. A) True. B) False. Show Answer Correct Answer: A) True. 12. To do research only to confirm what you believe to be true and not challenge your beliefs is considered to be confirmation bias? A) False. B) True. Show Answer Correct Answer: B) True. 13. These are the basic questions in negotiating and closing the call. A) When how much? And where?. B) Who? In what schedule? To what product?. C) When? And what is the cause of delay?. D) None of above. Show Answer Correct Answer: A) When how much? And where?. 14. You see an advertisement promoting a sale "for a limited time only!" with a countdown clock. Which bias is being used? A) Herd Mentality. B) Loss Aversion. C) Hedonic Adaptation. D) Fear of Missing Out (FOMO). Show Answer Correct Answer: D) Fear of Missing Out (FOMO). 15. Six moths ago, you noticed the price of your Disney stock kept going down and so you sold it ..... losing $ 2, 000 by selling it. Now the price of Disney stock is at an all-time low and all the experts are saying to buy it. However, you got burned before and refuse to buy it. What kind of economic behavior is this? A) The Herd Mentality. B) The Endowment Effect. C) Loss Aversion. D) The Bandwagon Effect. Show Answer Correct Answer: C) Loss Aversion. 16. Marginal Cost is? A) The highest amount that customers will pay for a good. B) The lowest amount that customers will pay for a good. C) The cost of producing one additional good. D) The cost of producing 2 additional goods. Show Answer Correct Answer: C) The cost of producing one additional good. 17. Choose the cognitive bias that is described below:People tend to persevere on a task they invested a lot of their resources in. They would opt to see things through for they do not like thinking they wasted their resources. A) Loss aversion. B) Anchoring. C) Bandwagon effect. D) Sunk Cost Bias. Show Answer Correct Answer: D) Sunk Cost Bias. 18. In March 2019, Instagram announced a brand new feature! What is it? A) You can now pay to keep your stories posted for a week. B) You can now pay to become blue check verified. C) You can now pay to remove all sponsored posts from your feed. D) You can now pay for purchases within the app. Show Answer Correct Answer: D) You can now pay for purchases within the app. 19. It's Prime Shopping Day. You notice that a pair of wireless earbuds is on sale if you buy then in the next 20 minutes. You decide to buy them while the sale is on. What kind of economic behavior is this? A) Herd Mentality. B) Fear of Missing Out (FOMO). C) Cognitive Bias. D) Endowment Effect. Show Answer Correct Answer: B) Fear of Missing Out (FOMO). 20. Cognitive Bias A) Decision making. B) Systematic error in thinking that affects judgements and decisions. C) Makes you decide if what your buying is rational. D) Mistakes digitally. Show Answer Correct Answer: B) Systematic error in thinking that affects judgements and decisions. ← 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 8Behavioral Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books