Behavioral Economics MCQs
Behavioral Economics MCQs
Answer these Behavioral Economics MCQs and assess your grip on the subject of Behavioral Economics. Scroll below and get started!
1: All of the following influence one's experience of pain except __________ factors.
A. Biological
B. Psychological
C. Socio-cultural
D. Economical
2: Behavioral economics helps explain why customers ________ at j.c. penney.
A. Favored sales and coupons and not the policy of everyday low prices
B. Is the dependent variable
C. Must have the same units as the variable doing the predicting
D. Is the independent variable
3: What is behavioral economics?
A. The study of the behavior of economies as a whole
B. The application of psychological principles to economic decision-making
C. The study of economic systems and policies
D. The analysis of financial markets and investments
4: Behavioral economics challenges the assumption of traditional economics that individuals are:
A. Rational and always make optimal decisions
B. Emotional and impulsive in decision-making
C. Uninfluenced by social and cognitive biases
D. Indifferent to financial incentives
5: What is prospect theory in behavioral economics?
A. The theory that individuals make decisions based on expected utility theory
B. The theory that individuals make decisions based on the potential gains and losses from a reference point
C. The theory that individuals always seek to maximize their own self-interest
D. The theory that individuals are risk-averse and avoid uncertain outcomes
6: What is the framing effect in behavioral economics?
A. The tendency for individuals to focus on short-term gains rather than long-term benefits
B. The influence of how information is presented on decision-making
C. The preference for maintaining the status quo and avoiding change
D. The tendency for individuals to make decisions based on emotional factors rather than rational analysis
7: What is loss aversion in behavioral economics?
A. The tendency for individuals to be more sensitive to losses than to equivalent gains
B. The preference for immediate rewards over delayed gratification
C. The tendency for individuals to make decisions based on social norms and expectations
D. The tendency for individuals to anchor their decisions on irrelevant information
8: What is the endowment effect in behavioral economics?
A. The tendency for individuals to place a higher value on items they already own
B. The preference for avoiding potential losses rather than pursuing potential gains
C. The tendency for individuals to make decisions based on social pressure and conformity
D. The preference for maintaining consistency in beliefs and behaviors
9: What is the concept of mental accounting in behavioral economics?
A. The tendency for individuals to allocate their resources based on arbitrary categories and labels
B. The preference for avoiding potential losses rather than pursuing potential gains
C. The tendency for individuals to rely on vivid and memorable information when making decisions
D. The preference for maintaining consistency in beliefs and behaviors
10: What is the availability heuristic in behavioral economics?
A. The tendency for individuals to rely on information that is easily retrievable from memory when making decisions
B. The preference for immediate rewards over delayed gratification
C. The tendency for individuals to anchor their decisions on irrelevant information
D. The preference for maintaining the status quo and avoiding change
11: What is the concept of social norms in behavioral economics?
A. The tendency for individuals to compare themselves to others and conform to their behaviors
B. The preference for avoiding potential losses rather than pursuing potential gains
C. The tendency for individuals to make decisions based on expected utility theory
D. The tendency for individuals to rely on vivid and memorable information when making decisions
12: What is the concept of present bias in behavioral economics?
A. The tendency for individuals to place a higher value on immediate rewards over future rewards
B. The preference for maintaining consistency in beliefs and behaviors
C. The tendency for individuals to rely on information that is easily retrievable from memory when making decisions
D. The preference for avoiding potential losses rather than pursuing potential gains
List of Behavioral Economics M...
Available in:
Behavioral Economics MCQs
