This quiz works best with JavaScript enabled. Home > Finance > Economics > Behavioral Economics > Behavioral Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Behavioral Economics Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Linda is 31 years old, single, outspoken, bright. She majored in philosophy. As a student she was deeply concerned with issues of social justice and also participated in anti-nuclear demonstrations. Which is MORE PROBABLE? A) Linda is a bank teller. B) Linda is a bank teller AND is active in the women's movement. Show Answer Correct Answer: A) Linda is a bank teller. 2. I send my client to the quality survey to: A) Be part of the process and the result towards a better Experience. B) Get a good rating on my recommendation. C) Meet my goal objectives. D) None of above. Show Answer Correct Answer: A) Be part of the process and the result towards a better Experience. 3. You have this gaming chair that you really like, but so does your best friend. The friend offers you $ 100 for your chair, even though you only paid $ 80 for it. You refuse to sell it. What kind of economic behavior is this? A) Overconfidence Bias. B) Endowment Effect. C) Fear of Missing Out (FOMO). D) Herd Mentality. Show Answer Correct Answer: B) Endowment Effect. 4. Watch the video and tell me how many times players wearing white pass the basketball A) 10. B) 15. C) 20. D) 5. Show Answer Correct Answer: B) 15. 5. Reasons given for why we like to buy more stuff include all of the following EXCEPT: A) We think we NEED it. B) We cannot help it. C) It makes us wanting more. D) It feels good. Show Answer Correct Answer: C) It makes us wanting more. 6. All of the following explain why humans might "follow the herd" EXCEPT ..... A) People prefer having opinions that are very different from those of others. B) It can be uncomfortable standing out from the crowd. C) Humans evolved to stick with the herd to survive. D) Fighting social pressure can be difficult to do. Show Answer Correct Answer: A) People prefer having opinions that are very different from those of others. 7. This technique seeks to make the Client aware of the expenses they have incurred and will not be able to recover: A) Cognitive overload. B) Gradient Meta Effect. C) Risk aversion. D) Sunk cost. Show Answer Correct Answer: D) Sunk cost. 8. What is the sunk cost fallacy? A) Continuing with a decision because of the time or money already invested. B) Feeling the need to get 'our money's worth'. C) Assigning more value to things we already own. D) Refusing to sell something for more than we paid for it. Show Answer Correct Answer: A) Continuing with a decision because of the time or money already invested. 9. Suggests that instrumental activity is kept at a high level by restricting access to the reinforcer A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral economics. Show Answer Correct Answer: B) Response-deprivation hypothesis. 10. Certain reinforcers are linked and affecting the price of one affects the consumption of the other A) Price range. B) Income level. C) Link to complementary commodity. D) Availability of substitute. Show Answer Correct Answer: C) Link to complementary commodity. 11. Janet has a snowboard she doesn't use anymore, but loss aversion has made her question whether or not she should sell it. Her friend Jack suggests she use the Overnight Test. Which of the following scenarios demonstrates the strategy she's using? A) Imagine the snowboard was replaced with cash, then make a plan about how to spend the cash. B) Imagine the snowboard was replaced with cash, then figure out how to keep the cash and get her snowboard back. C) Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard. D) Imagine the snowboard was replaced with cash, then figure out how to use the cash to get her snowboard back. Show Answer Correct Answer: C) Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard. 12. Which step requires you to evaluate the results of your choice? A) Sift. B) Study. C) Select. D) None of above. Show Answer Correct Answer: B) Study. 13. What is the conventional wisdom that most economists believed in? A) Humans are perfectly rational beings. B) Humans can remove emotions from decision-making. C) Humans make predictable financial mistakes. D) Humans always make the best decisions to maximize their happiness. Show Answer Correct Answer: D) Humans always make the best decisions to maximize their happiness. 14. What is one thing you would NOT do if you are trying to decrease social media influences in your life? A) Spend more time playing chess with friends. B) Go to the gym. C) Increase your time on SnapChat and TikTok. D) Read a book. Show Answer Correct Answer: C) Increase your time on SnapChat and TikTok. 15. Peter can choose from two retirement accounts. Fearing a loss, he opts for the more conservative one. This is a type of A) Confirmation Bias. B) Fear of Missing Out (FOMO). C) Loss Aversion. D) Overconfidence. Show Answer Correct Answer: C) Loss Aversion. 16. Which of the following is an example of confirmation bias? A) Looking for different sources on the same news story or topic. B) Reading articles from a variety of news sources, rather than just one. C) Looking only for articles that confirm your views on an issue. D) None of above. Show Answer Correct Answer: C) Looking only for articles that confirm your views on an issue. 17. People are compelled to buy MORE stuff for all the following reasons EXCEPT ..... A) The media portrays that the more stuff we have, the happier we will be. B) Scientific research proves that the more we own, the happier we tend to be. C) Once the initial novelty of a recent purchase wears off, we look to buy the next new thing. D) We tend to want more compared to those around us. Show Answer Correct Answer: B) Scientific research proves that the more we own, the happier we tend to be. 18. You go to a restaurant and order a big meal. Even though you're full, you keep eating because it was expensive. This is an example of ..... A) Mental Accounting. B) The Sunk Cost Fallacy. C) Fear of Missing Out. D) The Endowment Effect. Show Answer Correct Answer: B) The Sunk Cost Fallacy. 19. John 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) Loss aversion. B) Endowment effect. C) Sunk cost. D) Overconfidence . Show Answer Correct Answer: B) Endowment effect. 20. Guy 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) Sunk Cost Fallacy. B) Endowment Effect. C) Overconfidence. D) Herd Mentality. Show Answer Correct Answer: A) Sunk Cost Fallacy. 21. The phenomenon where a real or potential loss is perceived by individuals as psychologically or emotionally more severe than an equivalent gain A) Mental Accounting. B) Bandwagon Effect. C) Loss Aversion. D) Confirmation Bias. Show Answer Correct Answer: C) Loss Aversion. 22. How an individual normally chooses to allocate their responses is the unconstrained baseline A) Premark principle. B) Response-deprivation hypothesis. C) Response allocation. D) Behavioral bliss point. E) Minimal deviation model. Show Answer Correct Answer: D) Behavioral bliss point. 23. Depending on the way the information is presented, we will choose the option that best suits us, referring to: A) Preferences. B) Beliefs. C) Shortcuts. D) None of above. Show Answer Correct Answer: A) Preferences. 24. In the court trial deliberations, Juror Seven says, "There are still eleven of us who think he's guilty. You're alone." His attempt to use numbers to persuade Eight is: A) Confirmation bias. B) Framing Bias. C) Bandwagon effect. D) Clustering illusion. Show Answer Correct Answer: C) Bandwagon effect. 25. Overprecision is ..... A) The exaggerated certainty that our beliefs are correct. B) The overvaluing of our own abilities relative to everyone else. C) The belief that we are above average without supporting evidence. D) The expectation that other people place upon us to be accurate all the time. Show Answer Correct Answer: A) The exaggerated certainty that our beliefs are correct. 26. The phrase "I will tell you the advantages of staying up to date/regularizing at this time" corresponds to the technique of: A) Framing. B) Reciprocity. C) Anchorage. D) None of above. Show Answer Correct Answer: A) Framing. 27. The.....are quick exits between Advisor-Client that do not allow for analysis, understanding and detection of needs. A) Preferences. B) Beliefs. C) Shortcuts. D) None of above. Show Answer Correct Answer: C) Shortcuts. 28. Which of the following loss aversion strategies is this ad using? A) Protect People From Loss. B) Progress Bar. C) Free Trials & Samples. D) Coupon. Show Answer Correct Answer: A) Protect People From Loss. 29. The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere A) FOMO (Fear of not being at the situation). B) FOMO (Fear of Mediocre Oysters). C) FOMO (From Oklahoma Mas Ocra). D) FOMO (Fear of Missing Out). Show Answer Correct Answer: D) FOMO (Fear of Missing Out). 30. Which step requires you to act on your choice? A) Study. B) Sift. C) Select. D) None of above. Show Answer Correct Answer: C) Select. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBehavioral Economics Quiz 1Behavioral Economics Quiz 2Behavioral Economics Quiz 3Behavioral Economics Quiz 4Behavioral Economics Quiz 5Behavioral Economics Quiz 6Behavioral Economics Quiz 7Behavioral Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books