Economics Vocabulary Flashcard

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What is Behavioral Economics?

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The subfield of economics that applies psychological insights into human behavior

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What does Cognitive Bias refer to?

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A subconscious error in thinking that leads to irrational decision making

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What is Confirmation Bias?

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The tendency to search for information that supports our preconceptions.

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What does FOMO (Fear of Missing Out) describe?

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The anxiety that an exciting event may be happening elsewhere.

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What is Herd Mentality?

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The tendency to conform to the behaviors and beliefs of the people around you

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What is Loss Aversion?

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The tendency to regard losses as considerably more important than gains

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What does Overconfidence Bias refer to?

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The tendency to be more confident in one's own abilities than is justified

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What is Overestimation?

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When a person believes they are better at something than they actually are

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What is the Overnight Test?

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A strategy used to combat loss aversion by imagining an item replaced with cash.

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What is Social Media Marketing?

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The use of social media platforms to promote a product or service