Cognitive Bias
Changing your views or beliefs to match the opinion of others
conformity bias
Tax commonly used by the United States and local governments on goods to raise revenue
Sales Tax
Monthly or yearly amount you pay to keep your insurance policy
premium
The smallest amount you can pay each month to keep your credit card in good standing is called the ___________________________
Which planet rains diamonds?
Saturn and Jupiter. High pressure turns carbon into diamonds in their atmospheres.
Tendency to give more credibility to someone who holds a position of authority
authority bias
The amount you must pay before your insurance will pay
Deductible
To purchase a home, take out a(n) ___________________________.
mortgage
What common English word changes pronunciation when you capitalize the first letter?
Polish/polish
Example: You favor someone who has a firm handshake over someone who gives you an awkward handshake
What type of bias is this?
nonverbal bias
Lowers a person tax liability by lowering their taxable income
Tax deduction
Whole Life Insurance
If a person has bad credit or no credit, they may need this in order to get a loan
Co signer
You see a boat filled with people. It hasn’t sunk, but when you look again you don’t see a single person on board. Why?
They were all married (no “single” people left).
Example: You seek out a man to help carry a box even though a woman is nearby
Gender bias
High income earners pay a smaller fraction of their income than those with lower income. The tax burden decreases as the income of the taxpayer increases
regressive tax system
Life insurance that only lasts a specific number of years
Term Life Insurance
A(n) ___________________________ is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate.
What part of the human body has no blood supply?
The cornea. It gets oxygen directly from the air.
Tendency to rely on the first piece of information you encounter, even if the later contradicts it.
anchoring bias
Tax required of all workers regardless of employment status - largest source of revenue for the government
Income Tax
Insurance that provides income if you are unable to work due to illness or injury
Disability Insurance
When buying a new car, a person may be required to pay 20% of the car’s price upfront as a(n) ___________________________, reducing the amount he needed to borrow
downpayment
What connects these words: “banana,” “dresser,” “grammar,” “potato,” “revive,” “uneven,” and “voodoo”?
If you take the first letter and move it to the end, and then spell the word backwards—it remains the same