Unit 3 TEST REVIEW

Front

What is the cognitive bias where people prefer to avoid losses rather than acquiring equivalent gains?

Back

Loss aversion

Front

Which cognitive bias involves continuing an endeavor once an investment in money, effort, or time has been made?

Back

Sunk cost fallacy

Front

What is the term for the bias where people value things more highly simply because they own them?

Back

Endowment effect

Front

Which bias describes the fear of missing out on something others are experiencing?

Back

FOMO

Front

What is the cognitive bias where people tend to conform to the actions or beliefs of a larger group?

Back

Herd mentality

Front

Which bias involves favoring information that confirms one's preexisting beliefs or hypotheses?

Back

Confirmation bias

Front

What is the term for the bias where people have excessive confidence in their own answers or abilities?

Back

Overconfidence

Front

Which of the following best describes the difference between gross pay and net pay?

Back

Gross pay is the amount earned before deductions like taxes and insurance, while net pay is the amount left after deductions.

Front

Which of the following would be considered a tax deduction? educational expenses, donations to charitable places, children or parent you are caregiver for, all of these would be considered a possible tax deduction

Back

all of these would be considered a possible tax deduction

Front

Why would a person want to include tax deductions when filing their taxes each year?

Back

To reduce their taxable income, which can lower the amount of taxes they have to pay.