Behavioral Economics Quiz

What is the definition of cognitive bias?

• The tendency to put more value on things you already own

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to search for information that supports our preconceptions

• A subconscious error in thinking that leads to irrational decision making

What is the definition of confirmation bias?

• The tendency to put more value on things you already own

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to search for information that supports our preconceptions

• A subconscious error in thinking that leads to irrational decision making

What is the definition of endowment effect?

• The tendency to put more value on things you already own

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• A subconscious error in thinking that leads to irrational decision making

• The tendency to search for information that supports our preconceptions

What is the definition of FOMO (Fear of Missing Out)?

• The tendency to put more value on things you already own

• The tendency to search for information that supports our preconceptions

• A subconscious error in thinking that leads to irrational decision making

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

What is the definition of hedonic adaptation?

• The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to put more value on things you already own

• The tendency to search for information that supports our preconceptions

What is the definition of herd mentality?

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

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to search for information that supports our preconceptions

• The tendency to put more value on things you already own

What is the definition of loss aversion?

• The tendency to put more value on things you already own

• The tendency to search for information that supports our preconceptions

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to regard losses as considerably more important than gains of comparable magnitude

What is the definition of overconfidence bias?

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency people have to be more confident in their own abilities

• The tendency to search for information that supports our preconceptions

• The tendency to put more value on things you already own

What is the definition of overnight test?

• A strategy used to combat loss aversion by imagining that overnight something you own has been replaced with cash

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to search for information that supports our preconceptions

• The tendency to put more value on things you already own

What is the definition of overestimation?

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

• The tendency to feel anxiety/fear that an exciting event may be happening elsewhere

• The tendency to search for information that supports our preconceptions

• The tendency to put more value on things you already own