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

Jo wants to go see a movie that his friends have seen and are raving about

People who experience FOMO may...

go into debt to keep up with everyone else

Unlike traditional economics, behavioral economics believes that

People don't always behave in a rational way when making economic decisions

An "experiential purchase" is...

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

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

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

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

Your friend gives you a gift. They offer to trade you an item of similar value. The endowment effect states, people..

Keep the item they received first

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

Seeking information that challenges your beliefs

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

Marketing utilizes detailed user data to create ads for each user

You look at cars all day to find a used car.You spend hours, but none fit your budget. What sunk cost should you ignore?

The time you spent looking for cars that day

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

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

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

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

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NGPF Behavioral Economics

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Answers

1
Which of the following scenarios BEST demonstrates FOMO (Fear of Missing Out)?
Jo wants to go see a movie that his friends have seen and are raving about
David goes on a vacation and posts about it on social media every day
Megan takes a baking class after seeing a sign for it at her fav. bakery
Angela sees an advertisement for a pair of shoes and decides to buy them
2
What song is this?
Easy on Me
Rolling in the Deep
Someone Like You
Adele
3
People who experience FOMO may...
go into debt to keep up with everyone else
save a percentage of their paycheck each month
donate money to a cause they care about
create and stick to a monthly budget
4
Unlike traditional economics, behavioral economics believes that
People don't always behave in a rational way when making economic decisions
People 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
5
An "experiential purchase" is...
Something that commemorates an experience, like a souvenir
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 people
6
A website tells you, "Only one left!" while shopping online. Which loss aversion strategy is this website using?
Buy now, get free shipping
Scarcity and urgency
Free trials and samples
Coupons
7
Who sings this song (with Taylor Swift)
Chris Stapleton
Taylor Swift
Tim McGraw
Luke Bryan
8
You buy a $50/share stock that drops to $25 the next week. Loss aversion says you will do what?
Look for other stocks to buy
Do nothing
Sell the shares
Buy more shares
9
Mike felt the pain of losing $20 more than he felt the joy of finding it on the sidewalk the week before. This is...
Sunk cost
Loss aversion
Overconfidence
Endowment effect
10
People are compelled to buy MORE stuff for all of the following reasons EXCEPT...
Research proves that the more items we own, the happier we tend to be
Once the novelty of a purchase wears off, we look to buy the next new thing
The media portrays that the more stuff we have, the happier we will be
We tend to want more compared to those around us
11
What movie is this from?
No Time to Di
Tenet
Mission Impossible
Top Gun: Maverick
12
Who sings this song?
TImmy Trumpet
DJ Beat
Narcos
Edwin Diaz
13
Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket?
It would remain at a baseline level, then decrease over time
It would initially decrease, then return to a baseline level
It would remain at a baseline level, then increase over time
It would initially increase, then return to a baseline level
14
All of the following are types of overconfidence bias EXCEPT...
Overprecision
Overestimation
Overplacement
Overgeneralization
15
Investments of time, effort, and money that cannot be recovered are...
Relevant costs
Sunk costs
Avoidable costs
Opportunity costs
16
Your friend gives you a gift. They offer to trade you an item of similar value. The endowment effect states, people..
Keep the item they think looks the best
Keep the item they received first
Keep the item yhey were offered second
Keep the item they could sell for the most
17
Each of the following statements is an example of confirmation bias EXCEPT...
Only remembering details that uphold your beliefs
interpreting info to support your existing beliefs
Seeking information that challenges your beliefs
Ignoring information that challenges your beliefs
18
How has social media marketing evolved over the past few decades?
Marketing creates a less seamless shopping experience for consumers
Marketing utilizes detailed user data to create ads for each user
Marketing urges you to make financial decisions that align with your goals
Marketing makes it easy to distinguish advertising from other content
19
You look at cars all day to find a used car.You spend hours, but none fit your budget. What sunk cost should you ignore?
The cost of the warranty
The cost of the car
The time it will take to drive home
The time you spent looking for cars that day
20
Research done on peoples' salaries and happiness levels has shown that...
Most people are satisfied with their current annual salaries
Humans 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
Increasing your salary is guaranteed to increase your long-term happiness
21
When using social media, it's important to remember that...
Marketers have your best interests in mind so you to be fin'ly responsible
People typically post about the best parts of their lives on social media
Social ads want you to buy the stuff you NEED, not want
The more likes a post has, you know the information is likely to be good

NGPF Behavioral Economics Flashcards | StudBud