Behavioral Economics Quiz Questions & Answers
Test Your Knowledge on Nudge Theory
9 multiple choice quiz questions with answers
How much do you know about nudge theory? Test your knowledge with this quiz and learn more about the concept in behavioral economics, decision making, and related behavioral sciences. From understanding the difference between nudging and other ways of achieving compliance to exploring the effectiven...
How much do you know about nudge theory? Test your knowledge with this quiz and learn more about the concept in behavioral economics, decision making, and related behavioral sciences. From understanding the difference between nudging and other ways of achieving compliance to exploring the effectiveness of personalized nudging, this quiz covers a wide range of topics related to nudge theory. Discover how nudges are used in government, business, healthcare, fundraising, tourism, and AI and algorithmic nudging. Challenge yourself and see how
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1. What is nudge theory?
- A concept in behavioral economics that proposes adaptive designs of the decision environment to influence behavior and decision-making
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2. Who popularized the nudge concept?
- Richard Thaler and Cass Sunstein
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3. What is the main difference between nudging and other ways to achieve compliance?
- Nudging alters the environment to influence behavior, while other ways use education, legislation or enforcement
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4. What is a nudge?
- A small change in the environment that triggers automatic cognitive processes to favor a desired outcome
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5. What are some techniques used for nudging?
- Defaults, social-proof heuristics, and increasing the salience of the desired option
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6. What are some areas where nudge theory has been applied?
- Government, business, healthcare, fundraising, tourism, and AI and algorithmic nudging
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7. What is the main criticism of nudges?
- Covert nudges offer limited scope for securing lasting behavior change
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8. What is the partisan nudge bias?
- Public opinion on the ethicality of nudges has been shown to be susceptible to partisan nudge bias
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9. What is the effectiveness of nudges?
- Nudging is effective, but there is a moderate publication bias
Theory of Behavioral Economics and Finance Quiz
9 multiple choice quiz questions with answers
Test your knowledge of the Theory of Behavioral Economics and Behavioral Finance with this quiz! From the basics of prospect theory to its application in decision-making scenarios, this quiz covers various aspects of the theory. Discover how people evaluate potential losses and gains differently and...
Test your knowledge of the Theory of Behavioral Economics and Behavioral Finance with this quiz! From the basics of prospect theory to its application in decision-making scenarios, this quiz covers various aspects of the theory. Discover how people evaluate potential losses and gains differently and how the concepts of value function and reference point influence decision-making. Learn about the fourfold pattern of risk attitudes and the implications of myopic loss aversion. This quiz is perfect for those interested in understanding the psychology behind economic decision-making and its practical applications
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1. What is Prospect Theory?
- A theory of behavioral economics and behavioral finance
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2. Who developed Prospect Theory?
- Daniel Kahneman and Amos Tversky
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3. What is Loss Aversion?
- The observation that agents asymmetrically feel losses greater than that of an equivalent gain
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4. What is the difference between Prospect Theory and Expected Utility Theory?
- Prospect Theory describes the actual behavior of people, while Expected Utility Theory assumes rational behavior
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5. What is the value function in Prospect Theory?
- A function that assigns a value to an outcome
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6. What is the reference point in Prospect Theory?
- The starting point for evaluating prospects
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7. What is the editing phase in Prospect Theory?
- Where people simplify the decision problem by combining or eliminating prospects
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8. What is Myopic Loss Aversion?
- The propensity for people to focus on short-term losses and gains and to weigh them more heavily than long-term losses and gains
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9. What is Narrow Framing?
- Where people evaluate new gambles in isolation, ignoring other relevant risks
How well do you know Nobel laureate Daniel Kahneman?
9 multiple choice quiz questions with answers
Test your knowledge on the life and work of Israeli-American psychologist and Nobel laureate Daniel Kahneman with this quiz. From his groundbreaking research on the psychology of judgment and decision-making to his contributions to behavioral economics, this quiz will challenge you to recall key fac...
Test your knowledge on the life and work of Israeli-American psychologist and Nobel laureate Daniel Kahneman with this quiz. From his groundbreaking research on the psychology of judgment and decision-making to his contributions to behavioral economics, this quiz will challenge you to recall key facts about Kahneman's life and career. See how much you know about this influential global thinker and bestselling author of "Thinking, Fast and Slow."
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1. What is Daniel Kahneman known for?
- His work on the psychology of judgment and decision-making
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2. What is prospect theory?
- A theory that challenges the assumption of human rationality in modern economic theory
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3. Who did Kahneman share the 2002 Nobel Memorial Prize in Economic Sciences with?
- Vernon L. Smith
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4. What did Kahneman and Amos Tversky establish?
- A cognitive basis for common human errors that arise from heuristics and biases
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5. What is the name of Kahneman's bestselling book?
- Thinking, Fast and Slow
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6. What is hedonic psychology?
- The study of pleasure and happiness
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7. What is the peak-end rule?
- A rule that affects how we remember the pleasantness or unpleasantness of experiences
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8. Where did Kahneman receive his Bachelor of Science degree?
- Hebrew University of Jerusalem
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9. What is TGG Group?
- A business and philanthropy consulting company
How much do you know about Amos Tversky
9 multiple choice quiz questions with answers
Test your knowledge on the life and work of Amos Tversky, an influential figure in cognitive psychology and behavioral economics. Learn about his contributions to the discovery of human cognitive bias, his collaboration with Daniel Kahneman, and his work on prospect theory. Explore his career as a m...
Test your knowledge on the life and work of Amos Tversky, an influential figure in cognitive psychology and behavioral economics. Learn about his contributions to the discovery of human cognitive bias, his collaboration with Daniel Kahneman, and his work on prospect theory. Explore his career as a mathematician, psychologist, and professor at Hebrew University and Stanford University. Find out how he impacted the field of psychology and economics with his groundbreaking research. Take this quiz and see how much you know about this key figure in
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1. What was Amos Tversky's area of expertise?
- Both A and B
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2. What is the name of the treatise that Tversky co-authored?
- Foundations of Measurement
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3. Who did Tversky collaborate with to develop prospect theory?
- Daniel Kahneman
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4. Where did Tversky spend the rest of his career teaching?
- Stanford University
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5. What rank did Tversky receive in the Review of General Psychology survey?
- 93rd most cited psychologist
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6. What is the cognitive theory that Tversky and Kahneman laid out?
- Prospect theory
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7. What was Tversky's cause of death?
- Cancer
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8. In what year was Tversky born?
- 1937
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9. In what capacity did Tversky serve in the Israel Defense Forces?
- Paratrooper
How Well Do You Know Nobel Laureate Richard H
9 multiple choice quiz questions with answers
How well do you know Richard H. Thaler, the American economist and Nobel Prize winner? Test your knowledge of Thaler's contributions to behavioral economics, his advocacy for libertarian paternalism, and his work as a professor and author with this engaging quiz. From his cameo appearance in The Big...
How well do you know Richard H. Thaler, the American economist and Nobel Prize winner? Test your knowledge of Thaler's contributions to behavioral economics, his advocacy for libertarian paternalism, and his work as a professor and author with this engaging quiz. From his cameo appearance in The Big Short to his founding of an asset management firm, this quiz covers all aspects of Thaler's impressive career. Whether you're a fan or a curious learner, take the quiz to see how much you know about
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1. What is Richard H. Thaler's profession?
- Economist
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2. What is Thaler's contribution to the field of behavioral economics?
- He is a theorist
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3. What is libertarian paternalism?
- A theory of policy that uses nudges to promote good decision-making
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4. What is the title of Thaler's book co-authored with Cass Sunstein?
- Nudge: Improving Decisions About Health, Wealth, and Happiness
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5. What is Fuller & Thaler Asset Management's investment philosophy?
- Capitalizing on cognitive biases
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6. What is the subject of the movie in which Thaler made a cameo appearance as himself?
- The 2008 global financial crisis
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7. What is Thaler's academic affiliation?
- University of Chicago
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8. What is the name of Thaler's most famous book for a lay reader?
- Quasi-rational Economics
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9. What is Thaler's most notable award?
- The Nobel Memorial Prize in Economic Sciences
Test Your Knowledge on Loss Aversion Theory
9 multiple choice quiz questions with answers
Do you know what loss aversion theory is? This quiz will test your knowledge on the psychological phenomenon that people respond more strongly to losses than equivalent gains. Loss aversion is a cornerstone in behavioral economics and has been used to explain many phenomena in traditional choice the...
Do you know what loss aversion theory is? This quiz will test your knowledge on the psychological phenomenon that people respond more strongly to losses than equivalent gains. Loss aversion is a cornerstone in behavioral economics and has been used to explain many phenomena in traditional choice theory. From marketing to finance, loss aversion has been applied in various fields. Take this quiz to test your understanding of loss aversion theory and its related concepts, including loss attention, expectation-based loss aversion, and neural aspects.
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1. What is loss aversion?
- The tendency of people to respond more strongly to losses than equivalent gains
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2. Who first proposed loss aversion?
- Amos Tversky and Daniel Kahneman
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3. What is the endowment effect?
- People place a higher value on a good that they own than on an identical good that they do not own
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4. What is loss attention?
- The tendency of individuals to allocate more attention to a task or situation when it involves losses than when it does not involve losses
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5. What is the out of pocket phenomenon?
- People are more motivated to avoid losing personal resources than gaining equivalent resources
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6. What is expectation-based loss aversion?
- Individuals lose an amount of utility from the lack of experiencing fulfillment of their expectations
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7. What is the neural aspect of loss aversion?
- It can be measured using functional magnetic resonance imaging (fMRI) to investigate whether individual variability in loss aversion is reflected in differences in brain activity through bidirectional or gain or loss specific responses
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8. What is the relationship between loss aversion and age?
- Individual differences in loss aversion are related to variables such as age
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9. What is the loss of striatal dopamine neurons associated with?
- Reduced risk-taking behavior
The Endowment Effect Quiz
9 multiple choice quiz questions with answers
Test your knowledge on the endowment effect, a cognitive bias where people place a higher value on objects they own compared to those they don't. This phenomenon has significant implications for law and economics, and has been studied in various populations, including animals. Explore its definition...
Test your knowledge on the endowment effect, a cognitive bias where people place a higher value on objects they own compared to those they don't. This phenomenon has significant implications for law and economics, and has been studied in various populations, including animals. Explore its definition, criticisms, and business implications in this quiz. Challenge yourself on the leading explanations for the endowment effect and the different paradigms used to elicit it. Don't miss this opportunity to learn more about this fascinating topic!
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1. What is the endowment effect?
- A cognitive bias where people value an object they own more than the same object if they do not own it
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2. What is the endowment theory?
- An application of prospect theory that suggests loss aversion associated with ownership explains observed exchange asymmetries
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3. What is the mere ownership paradigm?
- A controversial third paradigm used to elicit the endowment effect
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4. What is the leading explanation for the endowment effect?
- Loss aversion
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5. What is the connection-based theory of the endowment effect?
- The attachment or association with the self-induced by owning a good is responsible for the endowment effect
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6. What is the implication of the endowment effect for law and economics?
- Significant implications, particularly in regard to welfare economics
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7. What is a criticism of the endowment effect?
- All of the above
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8. What is a business implication of the endowment effect?
- Businesses can offer free trials to expand the number of users reached and give consumers a sense of ownership
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9. What do cognitive accounts of the endowment effect suggest?
- It is induced by the way endowment status changes the search for, attention to, recollection of, and weighting of information regarding the transaction
Sunk Cost and Commitment Bias Quiz
9 multiple choice quiz questions with answers
Test your knowledge on two important concepts in decision-making: sunk cost and commitment bias. In this quiz, you will learn about the key points of each concept, including their definitions, implications, and psychological factors. From classical economics to behavioral economics, this quiz covers...
Test your knowledge on two important concepts in decision-making: sunk cost and commitment bias. In this quiz, you will learn about the key points of each concept, including their definitions, implications, and psychological factors. From classical economics to behavioral economics, this quiz covers a wide range of theories and research on decision-making. Take the quiz to see how much you know about sunk cost and commitment bias, and how they affect our choices in daily life.
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1. What are sunk costs in decision-making?
- Costs that have already been incurred and cannot be recovered
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2. According to classical economics, which costs are relevant to a rational decision?
- Prospective costs
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3. What is the bygones principle?
- A principle that states prospective costs are relevant to rational decisions
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4. What is the sunk cost fallacy?
- The belief that investments (i.e., sunk costs) justify further expenditures
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5. What is plan continuation bias?
- A cognitive bias that tends to force the continuation of an existing plan or course of action even in the face of changing conditions
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6. What is the framing effect in relation to the sunk cost effect?
- The outcome depends on how the information is framed
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7. What is the foot-in-the-door technique?
- A way to increase commitment by getting people to agree to a small request before asking for a larger one
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8. What is cognitive dissonance?
- The discomfort experienced when holding two or more conflicting beliefs or values
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9. What is the potential downside of commitment in decision-making?
- It can lead people to stick with decisions that are no longer in their best interest