Economics Quiz

What is the principle of bounded rationality according to Herbert Simon?

• Emotional decision-making

• Random decision-making process

• Unlimited rationality in decision-making

• Limited rationality due to cognitive limitations

Which system is described as non-conscious, effortless, and lazy?

• System 1

• Emotional self

• System 2

• Rational self

What is the definition of cognitive illusions?

• Conscious patterns of deviation from norm

• Random patterns of deviation from logic

• Situations where the mind systematically misinterprets information

• Logical and rational decision-making

What is the affect heuristic?

• A mental shortcut based on cognitive biases

• A process of rational decision-making

• A mental shortcut involving emotional responses

• A method to eliminate cognitive illusions

What percentage of brain activity is non-conscious?

• 5%

• 50%

• 75%

• 95%

What is the main function of habits according to the text?

• To create emotional responses

• To simplify decisions and reduce cognitive effort

• To complicate decision-making

• To increase cognitive effort

What is the role of the nucleus accumbens in habit formation?

• It is activated when we crave something

• It is responsible for emotional self-control

• It activates when we avoid rewards

• It signals the brain when a routine is bad

What is the Fogg Model used for?

• To create habits

• To reduce motivation

• To eliminate triggers

• To increase cognitive load

What are keystone habits?

• Habits that have the power to create a chain reaction of change

• Habits that only affect emotional responses

• Habits that are difficult to change

• Habits that are insignificant

What is the main factor that influences consumer habits according to the text?

• External triggers

• Intention to change habits

• Daily life demands

• Environmental cues in the store