Which of the following scenarios BEST demonstrates FOMO (Fear of Missing Out)?
José wants to go see a movie that all of his friends saw
Megan takes a baking class after seeing a sign for the class
After learning about hedonic adaptation, Tamara wants to spend her money more wisely. Which of the following might help her do so?
Getting a new phone accessory for her phone case
Donating money to a charity that supports a cause she cares
Which of the following best describes what a cognitive bias is?
An error in the way we think that can influence our decision
A rational decision that is based on research and facts
Which of the following actions is the BEST way to counteract loss aversion when making a decision?
Reframing the decision to focus on the potential gains inste
Polling a bunch of your friends and family to see what they
Sebastian began day trading stocks at the beginning of the summer. After a month, he made a profit of $200. Due to his short term success and his belief that he is a highly skilled trader, Sebastian puts his entire savings into the market.
The Fear of Missing Out (FOMO)
Overconfidence Bias
When using social media, it's important to remember that...
Social media ads are trying to get you to buy stuff you NEED
People usually only post about the best parts of their lives
Which of the following is the LEAST likely to influence a person’s financial decisions?
What their budget is
What their friends want
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.
Allow others to make the decision because she is too biased
Seek out comments that support the tax increase and the brid
Unlike traditional economics, behavioral economics believes that…
People do not always behave in a rational way when making ec
There is no way to predict how people will make economic dec
Investments of time, effort, and money that cannot be recovered are...
Opportunity costs
Sunk costs
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 decidin
The time you spent looking for cars that day
The cost of the warranty
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 …
Confirmation bias
Herd mentality
Overconfidence bias may lead the majority of Americans to think that they are…
Extremely poor drivers
Above average drivers
Which of the following is an example of how someone’s PHYSICAL values can influence their financial decisions?
Sophie likes to shop for clothes at the thrift store
Jessie gets a massage every month as a form of self-care
Due to hedonic adaptation, what do you expect would happen to Anu's level of happiness after buying a new jacket?
It would initially decrease, then return to a baseline level
It would initially increase, then return to a baseline level
People who experience FOMO may...
Go into debt to keep up with everyone else
Create and stick to a monthly budget
