Why are non-celebrities able to influence buying behavior?

They are more relatable, causing us to trust them

A financial plan to account for income and expenses

Which of the following statements best defines Use Value?

How helpful an item is given the context of a current situation

In the desert, why would you NOT select water EVERY time you were offered a choice between water and diamonds?

The utility of water decreases after your basic needs are met

convincing the audience that a celebrity is "just like us"

Which of the following statements best defines UTILITY?

How well something satisfies a person's wants or needs

something you can live with out

Everyone is doing it! You should too

What is aTestimonial?

A statement by a person in support of a particular truth

Name the advertising technique

Celebrity Endorsement/Eye Candy

What is the purpose of Nostalgia in ads?

Desire to return in thought or fact to a former time

Something that you need to live

Expenses that can vary from month to month

Which of the following statements best defines Exchange Value?

What you can obtain for an item at a later time

faulty conclusion is reached because of inadequate evidence

Which of the following statements best describes the concept of “diminishing marginal utility”?

The more of an item you acquire, the less useful or enjoyable it becomes

The following life values can have an effect on our money habits:

Inner, Social, Physical, Financial

Which of the following statements best defines Opportunity Cost?

What we lose by giving up the other provided choice

Which of the following is NOT a characteristic of Freemium Model?

All services are non-chargeable, including premium services

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Behavioral Finance

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Questions 34

Answers

1
Why are non-celebrities able to influence buying behavior?
They are more relatable, causing us to trust them
They have third party credibility
They are paid to advertise
They use the celebrity/eye candy appeal
2
Budget
A written plan used for college expenses
A way to give your money to the government
A financial plan to account for income and expenses
A plan for spending money
3
Which of the following statements best defines Use Value?
How helpful an item is given the context of a current situation
What we lose by giving up the other provided choice
What you can obtain for an item at a later time
How well something satisfies a person's wants or needs
4
In the desert, why would you NOT select water EVERY time you were offered a choice between water and diamonds?
Water is more valuable than diamonds, both physically and financially
The use value of diamonds is higher than the use value of water
The utility of water decreases after your basic needs are met
The water will expire by the time you get to the next booth
5
Define: PLAIN FOLKS
use of virtue words/opposite of name calling
making huge predictions based on a few small facts
A public figure or celebrity promoting a product
convincing the audience that a celebrity is "just like us"
6
Which of the following statements best defines UTILITY?
What we lose by giving up the other provided choice
What you can obtain for an item at a later time
How well something satisfies a person's wants or needs
How helpful an item is given the context of a current situation
7
Name the advertising technique
Romance Appeal
Celebrity Endorsement
Voice of Authority
Bundling
8
The person with this strong life value is willing to spend more for craftsmanship and design.
Financial
Social
Inner
Physical
9
One side introduces negative facts or perceptions putting the other side at an immediate disadvantage
Hedging
Poisoning the Well
Truthiness
Dog Whistle
10
What is a want?
food, water, shelter
something for survivial
something you can live with out
something someone does for you
11
Trusting one’s gut or following the inner voice, helps overcome a sudden spending with this life value:
Social
Inner
Physical
Financial
12
Bandwagon
Everyone is doing it! You should too
Feeling bad about someones negative association
A famous person talks about how something has helped them
Feeling good about someones positive association
13
How we handle money is, in part, tied up in our unique family histories, habits, and culture represents this value:
Physical
Inner
Social
Financial
14
What is aTestimonial?
take a test
propoganda
when you testify something
A statement by a person in support of a particular truth
15
The idea that items necessary to life are relatively inexpensive, but luxury items are very expensive, is known as:
the paradox of thrift
the law of supply and demand
the paradox of value
the law of economics
16
Which social media has the largest influence on shopping habits?
facebook
Snapchat
instagram
twitter
17
Name the advertising technique
Romance Appeal
Popularity
Celebrity Endorsement/Eye Candy
Voice of Authority
18
For something to have value, it must
cost a lot of money
be on sale
never go out of style
have utility
19
An example of a discretionary/luxury expense is:
rent
clothing
electric bill
McDonald's
20
In this type of ad consumers are encouraged to live like those they admire, even if they can’t afford it.
Aspirational buying
Bandwagon
Dog Whistle
Feedback Loop
21
Using graphs, charts or statistics that sound precise—yet even experts find the numbers suspect:
False Statistics
Plain Folks
Bandwagon
Freemium
22
Which is an example of a fixed expense?
new shoes
video games
loan payment
groceries
23
What is the purpose of Nostalgia in ads?
A brief story or tale told by a character in literature
A person or thing that makes another seem better by contrast
A sentence that withholds its main idea until the end
Desire to return in thought or fact to a former time
24
What is a need?
Something that you need to live
Something expensive
Something you can live without
Something you sell
25
A fixed expense
pays for entertainment
varies depending on your use
changes from month to month
is the same amount each month
26
Flexible expenses-
Expenses that will usually stay the same from month to month
Expenses that can vary from month to month
My expenses only used for needs
Extra expenses that are not necessary (Wants)
27
The people with this life value think more about the sustainability of their money and generally have more in reserve.
Inner
Financial
Social
Physical
28
Which of the following statements best defines Exchange Value?
How helpful an item is given the context of a current situation
How well something satisfies a person's wants or needs
What you can obtain for an item at a later time
What we lose by giving up the other provided choice
29
Hasty generalization
a process where you reason from particulars to universals
argument tries 2 establish superiority of 1 opinion over all
the final part of an argument
faulty conclusion is reached because of inadequate evidence
30
Which of the following statements best describes the concept of “diminishing marginal utility”?
The less of an item you have, the less useful or enjoyable it becomes
An item’s use value increases over time
The more of an item you acquire, the less useful or enjoyable it becomes
An item’s exchange value increases over time
31
The following life values can have an effect on our money habits:
Inner, Social, Personal, Professional
Personal, Professional, Financial, Social
Inner, Social, Physical, Financial
Financial, Inner, Personal, Professional
32
Which of the following statements best defines Opportunity Cost?
What you can obtain for an item at a later time
What we lose by giving up the other provided choice
How helpful an item is given the context of a current situation
How well something satisfies a person's wants or needs
33
Which of the following is NOT a characteristic of Freemium Model?
Charges a premium if upgrades required
Able to pull in customers who are willing to pay eventually
All services are non-chargeable, including premium services
Offer some core services at no charge
34
What is a discretionary expense?
Unnecessary But Wanted Expense
Necessary But Unwanted Expense
An Expense You May Or May Not Need
Unnecessary Expense

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