This quiz works best with JavaScript enabled. Home > Finance > Economics > Behavioral Economics > Behavioral Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value. A) Loss aversion. B) Sunk costs. C) Endowment effect. D) Confirmation bias. Show Answer Correct Answer: C) Endowment effect. 3. 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) Confirmation bias. B) Cognitive Overload. C) Loss aversion. D) Present bias. Show Answer Correct Answer: B) Cognitive Overload. 4. 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. 5. 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. 6. You spend less amount of money than usually due to FOMO A) True. B) False. Show Answer Correct Answer: B) False. 7. 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) Endowment effect. B) Loss aversion. C) Sunk cost. D) Overconfidence. Show Answer Correct Answer: B) Loss aversion. 8. 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. 9. 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. 10. 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. 11. Scarcity and Urgency makes you ..... A) Buy something in the next few days but quickly so it wont run out. B) Pressured to buy things so you dont miss your chance to get it. Show Answer Correct Answer: B) Pressured to buy things so you dont miss your chance to get it. 12. 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. 13. Over 70% of people believe they are above average drivers. This is an example of (a) . A) The endowment effect. B) Confirmation bias. C) FOMO. D) A overconfidence bias. Show Answer Correct Answer: D) A overconfidence bias. 14. 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. 15. People see an average of about 3, 000 advertisements or product impressions per day. A) True. B) False. Show Answer Correct Answer: A) True. 16. To do research only to confirm what you believe to be true and not challenge your beliefs is considered to be confirmation bias? A) True. B) False. Show Answer Correct Answer: A) True. 17. 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?. 18. You see an advertisement promoting a sale "for a limited time only!" with a countdown clock. Which bias is being used? A) Hedonic Adaptation. B) Fear of Missing Out (FOMO). C) Herd Mentality. D) Loss Aversion. Show Answer Correct Answer: B) Fear of Missing Out (FOMO). 19. 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. 20. Marginal Cost is? A) The cost of producing one additional good. B) The cost of producing 2 additional goods. C) The highest amount that customers will pay for a good. D) The lowest amount that customers will pay for a good. Show Answer Correct Answer: A) The cost of producing one additional good. 21. 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. 22. 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. 23. 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) Endowment Effect. B) Cognitive Bias. C) Herd Mentality. D) Fear of Missing Out (FOMO). Show Answer Correct Answer: D) Fear of Missing Out (FOMO). 24. Imagine two scenarios:Scenario 1:You see a rare sports card being sold for $ 500 in a store but choose not to buy it because you think it's too expensive. Scenario 2:You find a rare sports card worth $ 500 in your parents' attic. Rather than sell it, you choose to put it in a case and display it in your room. In scenario 1, you are putting more value on your $ 500 than the card. In scenario 2, you are putting more value on your card than the $ 500. This is an example of what? A) Fear of missing out. B) Confirmation bias. C) Overconfidence. D) Endowment effect. Show Answer Correct Answer: D) Endowment effect. 25. Decoy pricing asks the question ..... A) Why do we support opinions as they become more popular?. B) Why do we feel more strongly about one option after a third one is added?. C) Why does paying without physical cash increase spending?. D) Why do we value items more if they belong to us?. Show Answer Correct Answer: B) Why do we feel more strongly about one option after a third one is added?. 26. Which of the following best describes what a cognitive bias? A) The belief that a person should change their opinions when new facts arise. B) A rational decision that is based on research and facts. C) An error in the way we think that can influence our decisions. D) The belief that we are right until someone provides information that contradicts our belief. Show Answer Correct Answer: C) An error in the way we think that can influence our decisions. 27. What is the term for refusing to sell something for more than we paid for it? A) The endowment effect. B) The sunk cost fallacy. C) Transaction utility. D) Mental accounting. Show Answer Correct Answer: A) The endowment effect. 28. People under the age of 30 make up ..... of all those who experience FOMO. A) 15%. B) 31%. C) 49%. D) 56%. Show Answer Correct Answer: D) 56%. 29. FOMO (Fear of Missing Out) is ..... A) Feeling anxiety/fear that an exciting/ interesting event may happen w/o you. B) Fear of Mediating Outside in undesirable weather. C) Conforming to the behaviors and beliefs of the people around you. D) Seeing old pictures of social events that you were unable to attend. Show Answer Correct Answer: A) Feeling anxiety/fear that an exciting/ interesting event may happen w/o you. 30. What does FOMO stand for? A) Finding Our Magic Opportunity. B) Fear of Missed Opportunities. C) Fear of Missing Out. D) Fear of More Obligations. Show Answer Correct Answer: C) Fear of Missing Out. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 7Behavioral Economics Quiz 8Behavioral Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books