Unit 1 Content (Finance)
What is Net Pay?
The actual "take-home" pay after all deductions are subtracted.
The mental shortcut where we copy what other people are doing, assuming it's the correct behavior.
Social Proof / Social Norms
The author of The Undercover Economist.
Tim Harford
A cafeteria puts fruit at eye-level and moves cookies to a back shelf. This nudge targets what bias?
Default Bias
This type of data is numerical (the "what") and is gathered with surveys, while this type is descriptive (the "why") and is gathered with interviews. Name the two types in order.
Quantitative and Qualitative data
What is a Budget?
A plan for how you will use your income for spending and saving.
The "gut feeling" bias, where we make a decision based on our current emotional state.
Affect Heuristic
The general term for the deliberate design of an environment to influence our decisions.
Choice Architecture
A yogurt labeled "99% Fat-Free" instead of "Contains 1% Fat." This nudge uses what bias?
Framing Effect
What do the "F," "I," and "R" in our method for creating a strong research question.
Focused, Investigable, and Relevant
What is a Fixed Expense?
An expense that stays the same each month, like rent.
The bias for sticking with the pre-set, easiest option.
Default Bias
The strategy of charging different groups (like students or commuters) different prices.
Price Targeting (or Price Discrimination)
A sign that says, "The majority of guests in this room reuse their towels." This nudge uses what bias?
Social Proof
A sophisticated justification for a research question must prove these three things.
What are the Root Cause (psychological bias), Broader Relevance (SDG/global issue), and Project Connection (how it helps the pitch).
What is the Bandwagon effect?
This advertising technique appeals to the desire to be part of a group.
This bias explains why losing $20 feels much worse than the pleasure of finding $20.
Loss Aversion
Starbucks' menu uses this bias by listing expensive drinks, making the mid-range ones seem reasonable .
Anchoring Bias or framing effect
A study app that gives you a "ping" the instant you finish a task. This nudge targets what bias?
Present Bias
Explain the single most important difference between a "nudge" and a "mandate" (a rule), using the concept of freedom of choice.
A nudge guides behavior but preserves freedom of choice (e.g., putting fruit at eye level), while a mandate removes choice (e.g., banning junk food).
What is a Deficit?
The term for when your total monthly expenses are greater than your total monthly income.
The technical term for "Present Bias," our tendency to want small, immediate rewards.
Hyperbolic Discounting
The reason Wholefoods places organic bananas next to conventional apples, not conventional bananas .
To prevent easy price comparison.
The building challenge we did in Lesson 1 to practice collaboration.
Marshmallow Challenge
State the full Statement of Inquiry (SoI) for our unit.
"Investigating the relationship between human psychology and design allows us to create innovative solutions that influence behavior and choice"