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Behavioral Economics and Human Decision Making Quiz

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What term is used in behavioral economics to describe the phenomenon where individuals tend to overvalue immediate rewards and undervalue future rewards?

Present Bias

Explanation

Overvaluing immediate rewards and undervaluing future rewards.

What is the term for the tendency to rely too heavily on the first piece of information encountered when making decisions?

Anchoring

Explanation

Over-reliance on initial information in decision-making.

What is the term for the tendency to seek out information that confirms one's preexisting beliefs and ignore information that contradicts them?

Confirmation Bias

Explanation

Seeking information confirming existing beliefs while ignoring contradictory information.

In behavioral economics, what is the term for the tendency to continue investing in a project or decision because of the resources already invested, regardless of future outcomes?

Escalation of Commitment

Explanation

Continued investment in a project despite prior resource commitment.

What is the term for the tendency to place a higher value on an item simply because one owns it?

Endowment Effect

Explanation

Valuing an item more due to ownership.

Which concept in behavioral economics refers to the tendency of people to rely on the first piece of information encountered when making decisions?

Anchoring

Explanation

Decision-making reliance on initial information.

In the context of behavioral economics, what is hyperbolic discounting?

A tendency to prefer smaller rewards sooner over larger rewards later

Explanation

Preferring immediate smaller rewards over delayed larger rewards.

Which cognitive bias involves making decisions based on the information readily available rather than the complete or accurate data?

Availability Heuristic

Explanation

Decision-making based on readily available information.

What is the term for the psychological tendency to believe that if something happens frequently in the past, it will continue to happen in the future?

Gambler's Fallacy

Explanation

Believing past frequency predicts future occurrences.

#10

In the context of behavioral economics, what is the term for the tendency to ascribe positive qualities to an object simply because one owns it?

Endowment Effect

Explanation

Attributing positive qualities to owned objects.

#11

Which behavioral economics concept involves the tendency to place a higher value on an item simply because it belongs to oneself?

Ownership Bias

Explanation

Valuing items more because they belong to oneself.

#12

Which behavioral economics concept involves the tendency of people to irrationally continue investing in a project or decision based on what they have already invested, regardless of future outcomes?

Sunk Cost Fallacy

Explanation

Irrational persistence in investments due to prior commitment.

#13

In the Ultimatum Game, which is a common experiment in behavioral economics, what does the proposer offer to the responder?

A variable amount of money

Explanation

Proposer's offer to responder in the Ultimatum Game.

#14

Which concept in behavioral economics refers to the tendency to make decisions based on the way the information is presented, rather than the information itself?

Framing

Explanation

Decision-making influenced by information presentation.

#15

According to prospect theory, individuals are more sensitive to losses than gains. What is this phenomenon called?

Loss Aversion

Explanation

Greater sensitivity to losses than gains in prospect theory.

#16

Which behavioral economics concept refers to the tendency to overestimate the likelihood of rare events or extreme outcomes?

Black Swan Fallacy

Explanation

Overestimating rare event likelihood or extreme outcomes.

#17

In behavioral economics, what is the concept that describes the tendency to place a higher value on an item simply because one has invested time, money, or effort into it?

Sunk Cost Fallacy

Explanation

Valuing items more due to prior time, money, or effort investment.

Behavioral Economics and Human Decision Making Quiz

What term is used in behavioral economics to describe the phenomenon where individuals tend to overvalue immediate rewards and undervalue future rewards?

What is the term for the tendency to rely too heavily on the first piece of information encountered when making decisions?

What is the term for the tendency to seek out information that confirms one's preexisting beliefs and ignore information that contradicts them?

In behavioral economics, what is the term for the tendency to continue investing in a project or decision because of the resources already invested, regardless of future outcomes?

What is the term for the tendency to place a higher value on an item simply because one owns it?

Which concept in behavioral economics refers to the tendency of people to rely on the first piece of information encountered when making decisions?

In the context of behavioral economics, what is hyperbolic discounting?

Which cognitive bias involves making decisions based on the information readily available rather than the complete or accurate data?

What is the term for the psychological tendency to believe that if something happens frequently in the past, it will continue to happen in the future?

In the context of behavioral economics, what is the term for the tendency to ascribe positive qualities to an object simply because one owns it?

Which behavioral economics concept involves the tendency to place a higher value on an item simply because it belongs to oneself?

Which behavioral economics concept involves the tendency of people to irrationally continue investing in a project or decision based on what they have already invested, regardless of future outcomes?

In the Ultimatum Game, which is a common experiment in behavioral economics, what does the proposer offer to the responder?

Which concept in behavioral economics refers to the tendency to make decisions based on the way the information is presented, rather than the information itself?

According to prospect theory, individuals are more sensitive to losses than gains. What is this phenomenon called?

Which behavioral economics concept refers to the tendency to overestimate the likelihood of rare events or extreme outcomes?

In behavioral economics, what is the concept that describes the tendency to place a higher value on an item simply because one has invested time, money, or effort into it?

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