Behavioral Economics - #1

Which term describes the tendency to search for and favor information that confirms existing beliefs while ignoring contradictory evidence?

• Confirmation Bias

• Cognitive Bias

• Overconfidence Bias

• Herd Mentality

The psychological phenomenon where people place higher value on items they own compared to identical items they don't own is called:

• Loss Aversion

• Endowment Effect

• Hedonic Adaptation

• FOMO

Which concept explains why people tend to feel more impacted by losses than equivalent gains?

• Overestimation

• Cognitive Bias

• Loss Aversion

• Behavioral Economics

The study of how psychological, emotional, and social factors influence economic decisions is known as:

• Herd Mentality

• Cognitive Bias

• Overconfidence Bias

• Behavioral Economics

When people adjust to a new level of happiness or satisfaction after changes in their circumstances, this is called:

• FOMO

• Hedonic Adaptation

• Endowment Effect

• Loss Aversion

The tendency to follow the actions of others, especially in financial decisions, is referred to as:

• Cognitive Bias

• Overconfidence Bias

• Herd Mentality

• Loss Aversion

Which term describes systematic errors in thinking that affect decisions and judgments?

• Overestimation

• Cognitive Bias

• FOMO

• Hedonic Adaptation

The anxiety of missing out on rewarding experiences that others might be having is known as:

• FOMO

• Loss Aversion

• Overconfidence Bias

• Endowment Effect

When individuals overestimate their own abilities, knowledge, or accuracy of predictions, this exhibits:

• Endowment Effect

• Herd Mentality

• Overconfidence Bias

• Confirmation Bias

The tendency to overestimate the probability or extent of something occurring is called:

• Behavioral Economics

• Overestimation

• FOMO

• Cognitive Bias