#1
Which bias refers to the tendency to rely too heavily on the first piece of information encountered?
Anchoring bias
ExplanationRelying heavily on initial information.
#2
What does the anchoring bias suggest about decision making?
Decisions are influenced by the first piece of information encountered
ExplanationDecisions influenced by initial information.
#3
Which bias involves giving greater importance to recent events compared to earlier ones?
Recency bias
ExplanationGiving more weight to recent events.
#4
What effect does confirmation bias have on decision making?
It leads to ignoring evidence that contradicts existing beliefs
ExplanationIgnoring contradictory evidence.
#5
What is loss aversion in behavioral economics?
The tendency to avoid losses more than acquiring equivalent gains
ExplanationPrefer avoiding losses over equivalent gains.
#6
Which bias involves overestimating the likelihood of events with greater emotional impact?
Affect heuristic
ExplanationOverestimating likelihood of emotionally impactful events.
#7
What does the endowment effect suggest about decision making?
People value things more highly once they own them
ExplanationValuing owned items more highly.
#8
Which bias involves making decisions based on the most readily available information?
Availability bias
ExplanationDecisions based on easily accessible information.
#9
Which bias involves making decisions based on the way information is presented, rather than the information itself?
Framing bias
ExplanationDecisions influenced by presentation.
#10
What is the primary characteristic of the endowment effect?
Valuing things more highly once they are owned
ExplanationHigher valuation of owned items.
#11
What is the affect heuristic?
Making decisions based on emotional reactions rather than objective analysis
ExplanationDecisions based on emotions over analysis.
#12
Which bias involves making decisions based on the last piece of information encountered?
Recency bias
ExplanationDecisions influenced by recent information.