Unit 1: Behavioral Economics Review

What are the four categories of values that drive financial behaviors according to SAM's LifeValues Quiz?

• Personal values, Community values, Health values, Wealth values

• Self values, Group values, Environmental values, Monetary values

• Inner values, Social values, Physical values, Financial values

• Identity values, Relationship values, Material values, Economic values

How do strong inner values affect money habits?

• They translate to trusting one's gut or following the inner voice in financial decisions.

• They result in a lack of confidence in financial transactions.

• They lead to overspending on luxury items.

• They cause a person to prioritize short-term pleasures over long-term security.

What is a likely effect of having strong social values on money habits?

• Preferring to invest in stocks over bonds.

• Focusing solely on personal financial growth without regard for others.

• Influencing money habits based on family history and cultural preferences.

• Avoiding charitable giving and public service work.

Which of the following is an influence of physical values on a person's life?

• The feeling of relatedness to political parties.

• The sufficiency of money.

• The amount of space needed to feel comfortable.

• The desire for freedom and independence.

What does not having strong financial values likely result in?

• Having a strong sense of personal identity.

• Being well-prepared for financial emergencies.

• Prioritizing physical health over financial decisions.

• Being less prepared for financial emergencies.

What does FOMO stand for in the context of the video?

• Feeling Of Missing Opportunities
• Fear Of Missing Out
• Fear Of Making Obligations
• Festival Of Music Occurrences

What triggers FOMO mostly these days?

• Email notifications
• Text messages
• TV commercials
• Social media platforms

What does the video mention as a downside of comparing lives on social media?

• Feeling more confident
  

• Making better decisions

• Second-guessing decisions and feeling insecure

• Being more productive

What is the primary purpose of cognitive biases in our brain?

• To slow down information processing
  

• To create systematic errors

• To make decisions quickly

• To rely on actual facts

How does the video suggest kicking FOMO?

• Limit time spent on social media

• Quitting social media completely

• Posting more frequently on social media

• Ignoring friends' posts