Social Norms & Decision-Making
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Questions and Answers

What is the primary function of social norms in a group?

  • To create conflict among group members
  • To guide individual behaviors based on collective expectations (correct)
  • To limit personal freedom
  • To promote deviant behavior
  • What is the term used to describe the tendency to assign subjective values to money in different accounts?

  • Societal norms
  • Cognitive bias
  • Risk aversion
  • Mental accounting (correct)
  • What is the term used to describe the phenomenon where people are more willing to take risks with 'found' money?

  • Sunk cost fallacy
  • Mental accounting
  • House-money effect (correct)
  • Disposition effect
  • What is the term used to describe the tendency to hold onto losing investments due to past investments rather than current rational assessment?

    <p>Sunk cost fallacy</p> Signup and view all the answers

    What is the term used to describe the tendency to avoid realizing losses by holding onto losing stocks and quickly selling winning stocks?

    <p>Disposition effect</p> Signup and view all the answers

    What is the term used to describe the varying degrees of strictness in societal norms across cultures?

    <p>Tightness and looseness</p> Signup and view all the answers

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