Crapshoot
Maybe this one
I'll try my chances here
I like this column
Sure, Why not?
100

Which of the following scenarios BEST demonstrates FOMO (Fear of Missing Out)?

Megan takes a baking class after seeing a sign for the class at her favorite bakery

David goes on a vacation to Europe and posts about it on social media every day

Angela sees an advertisement for a pair of shoes and decides to buy them

José wants to go see a movie that all of his friends have seen and are raving about

José wants to go see a movie that all of his friends have seen and are raving about

100

People are compelled to buy MORE stuff for all of the following reasons EXCEPT...

The media portrays that the more stuff we have, the happier we will be

We tend to want more compared to those around us

Scientifi c research proves that the more items we own, the happier we tend to be

Once the initial novelty of a recent purchase wears off, we look to buy the next new thing

 

Scientific research proves that the more items we own, the happier we tend to be

100

People who experience FOMO may...

save a percentage of their paycheck each month

donate money to a cause they care about

go into debt to keep up with everyone else

create and stick to a monthly budget

go into debt to keep up with everyone else

100

Each of the following statements is an example of confirmation bias EXCEPT...

Interpreting information to support your existing beliefs

Seeking information that challenges your beliefs

Only remembering details that uphold your beliefs

Ignoring information that challenges your beliefs

Seeking information that challenges your beliefs

100

Which of the following best describes what a cognitive bias is?

A rational decision that is based on research and facts

The belief that a person should change their opinions when new facts arise

the belief that we are right until someone provides information that contradicts our belief

An error in the way we think that can infl uence our decisions

An error in the way we think that can infl uence our decisions

200

Research done on peoples' salaries and happiness levels has shown that...

Most people are satisfied with their current annual salaries

Increasing your annual salary is guaranteed to increase your long-term happiness

Humans typically become accustomed to how much they earn and eventually want more

Most people need to earn at least $200,000 a year in order to be happy

Humans typically become accustomed to how much they earn and eventually want more

200

All of the following are types of overconfidence bias EXCEPT...

Overplacement

Overestimation

Overprecision

Overgeneralization

Overgeneralization

200

Michael observed he felt the pain of losing a $20 bill more than he felt the joy of finding it on the sidewalk the week before. This is a result of...

Endowment effect

Loss aversion

Sunk cost

Overconfidence

Loss aversion

200

Sebastian began day trading stocks at the beginning of the summer. After a month, hemade a profi t of $200. Due to his short term success and his belief that he is a highlyskilled trader, Sebastian puts his entire savings into the market. This is an example of

Overconfidence Bias

The Fear of Missing Out (FOMO)

Confirmation Bias

The Endowment Effect

Overconfidence Bias

200

Janet has a snowboard she doesn’t use anymore, but loss aversion has made her question whether or not she should sell it. Her friend Jack suggests she use the Overnight Test. Which of the following scenarios demonstrates the strategy she’s using?

Imagine the snowboard was replaced with cash, then make a plan about how to spend the cash.

Imagine the snowboard was replaced with cash, then figure out how to keep the cash and get her snowboard back.

Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard.

Imagine the snowboard was replaced with cash, then figure out how to use the cash to get hersnowboard back.

 

Imagine the snowboard was replaced with cash, then decide if she's happier with the cash or the snowboard.

300

A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using?

Coupons

Scarcity and urgency

Buy now, get free shipping

Free trials and samples

Scarcity and urgency

300

An "experiential purchase" is...

Something that commemorates an experience, like a souvenir

Something that creates or enhances an experience or connects us with other people

Something that was made by hand rather than at a factory

Something that has a lot of monetary value

Something that creates or enhances an experience or connects us with other people

300

Investments of time, effort, and money that cannot be recovered are...

Opportunity costs

Sunk costs

Relevant costs

Avoidable costs

Sunk costs

300

Herd mentality may explain why...

Davona chose to skip dinner with her friends and watched a movie at home instead

Mason went to see a movie with his friends even though he didn't like the genre

Ginnifer decided to keep her current phone even though her closest friends bought the newversion

Akshay bought a shirt he liked from an unpopular brand

Mason went to see a movie with his friends even though he didn't like the genre

300

Imagine two scenarios:

Scenario 1: You see a rare sports card being sold for $500 in a store but choose not to buy it because you think it’s too expensive.

Scenario 2: You find a rare sports card worth $500 in your parents’ attic. Rather than sell it, you choose to put it in a case and display it in your room.

In scenario 1, you are putting more value on your $500 than the card. In scenario 2, you are putting more value on your card than the $500. This is an example of what?


Fear of missing out

Overconfidence

Endowment effect

Confirmation bias

Endowment effect

400

Unlike traditional economics, behavioral economics believes that:

People behave in a rational way when making economic decisions

People do not always behave in a rational way when making economic decisions

There is no way to predict how people will make economic decisions

People will always update their viewpoints based on new information

People do not always behave in a rational way when making economic decisions

400

How has social media marketing evolved over the past few decades?


Modern marketing urges you to make financial decisions that align with your goals

Modern marketing utilizes extremely detailed user data to create personalized ads for each user

Modern marketing makes it easy to distinguish advertising from other types of content

Modern marketing creates a less seamless shopping experience for consumers

Modern marketing utilizes extremely detailed user data to create personalized ads for each user

400

Imani attends a town hall meeting where a tax increase is proposed to help pay for a new bridge.  After the meeting, she reads Facebook comments that complain about the already high taxes in her town, which is a view that she agrees with.  To avoid confirmation bias, Imani should…

avoid social media since it will infl uence her decision

seek out comments that support the tax increase and the bridge project to provide analternative viewpoint

allow others to make the decision because she is too biased

join a Facebook group that organizes citizens that are opposed to the tax increase

 

seek out comments that support the tax increase and the bridge project to provide an alternative viewpoint

400

All of the following explain why humans might "follow the herd" EXCEPT...

People prefer having opinions that are very different from those of others

It can be uncomfortable standing out from the crowd

Humans evolved to stick with the herd to survive

Fighting social pressure can be diffi cult to do

 

People prefer having opinions that are very different from those of others

400

Your friend gives you an item. A day later, they offer to trade you another item of similar value. According to the endowment effect, most people would keep the item…

They received first

They were offered second

They could sell for the most

They think looks the best

They received first

500

You buy a stock that has a price of $50 per share. A week later the stock's price drops to $25 per share (it's lost half its value).  If you are affected by loss aversion you would be likely to…

Buy more shares

Sell the shares

Do nothing

Look for other stocks to buy

 

Sell the shares

500

Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket?

It would initially increase, then return to a baseline level

It would remain at a baseline level, then increase over time

It would initially decrease, then return to a baseline level

It would remain at a baseline level, then decrease over time

It would initially increase, then return to a baseline level

500

You spend an entire Saturday going to car dealerships in search of a used car. You spend hours looking at cars and even test drive a few, but there are none you like that fit your budget. What is the sunk cost you should ignore when deciding whether or not to buy a car that day?

The cost of the car

The cost of the warranty

The time it will take to drive home

The time you spent looking for cars that day

The time you spent looking for cars that day

500

You are doing research on a new electric car that you are interested in buying.  You only visit the car company’s website and an online message board of electric car enthusiasts to do your research.  This strategy may lead to … 

Herd Mentality

The Endowment Effect

Confirmation Bias

Loss Aversion

Confirmation Bias

500

When using social media, it's important to remember that... 

Social media ads are trying to get you to buy stuff you NEED, not want

Marketers have your best interests in mind and want you to be financially responsible

People typically only post about the best parts of their lives on social media

The more likes a post has, the more trustworthy and accurate the information is likely to be

People typically only post about the best parts of their lives on social media