Behavioral Economics

the tendency to make decisions about a current situation based on what resources you have already invested in the situation

• loss aversion

• herd mentality

• confirmation bias

• sunk cost fallacy

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

• loss aversion

• confirmation loss

• Loss Aversion

• hedonic adaptation

Term refers to an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value

• Endowment effect

• herd mentality

• priming

• Availability heuristic

Bobby bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is

• Endowment Effect

• Herd Mentality

• Sunk Cost Fallacy

• Overconfidence

Peter can choose from two retirement accounts. Fearing a loss, he opts for the more conservative one. This is a type of

• Confirmation Bias

• Loss Aversion

• Overconfidence

• Fear of Missing Out (FOMO)

True/False: The tendency people have to be more confident in their own abilities - overconfidence bias

• True

• False

What is the term for the tendency to overvalue things you own compared to their market value?

• Endowment Effect

• Sunk Cost Fallacy

• Loss Aversion

• Herd Mentality

Which concept in behavioral economics explains why people might continue investing in a losing proposition due to prior investments?

• Loss Aversion

• Sunk Cost Fallacy

• Endowment Effect

• Confirmation Bias

What is the behavioral economics term for the tendency to follow the actions of a larger group, even if they are irrational?

• Herd Mentality

• Loss Aversion

• Endowment Effect

• Sunk Cost Fallacy

Which concept describes the tendency to prefer avoiding losses rather than acquiring equivalent gains?

• Loss Aversion

• Endowment Effect

• Sunk Cost Fallacy

• Herd Mentality