Behavioral Decision Theory and Behavioral Economics - Quiz

1. Mental accounting refers to:

Ignoring budgets

Spending without planning

Treating all money as equally valuable

Separately coding money into mental categories

2. The “anchoring effect” influences decisions by:

Starting from an initial value and adjusting insufficiently

Comparing all options equally

Focusing only on emotional responses

Ignoring reference points

3. The “availability heuristic” describes a tendency to:

Focus on unavailable options

Ignore past experiences

Rely on information that is easy to recall

Seek complex data

4. “Herd behavior” refers to:

Imitating the actions of a larger group

Ignoring social influence

Buying based on personal preferences only

Avoiding trends

5. Heuristics are:

Simple rules of thumb for making decisions

Laws regulating markets

Ways to ignore advertising

Complex statistical models

6. Behavioral economics recognizes that consumer decisions are influenced by:

Psychological, social, and emotional factors

Strict market regulations

Only price and income

Supply and demand curves

7. In BDT, “risk aversion” typically leads to:

Preference for uncertain options

Seeking out maximum risk

Avoidance of risky choices

Ignoring losses

8. Which effect can cause consumers to stick with default choices even if better options exist?

Anchoring effect

Scarcity bias

Sunk cost effect

Default effect

9. In BDT, loss aversion means consumers:

Seek out losses

Are risk-loving

Value losses more than equivalent gains

Ignore emotional responses

10. Behavioral Decision Theory (BDT) focuses on how consumers:

Actually make choices in real-world settings

Make perfectly rational decisions

Avoid psychological biases

Always follow economic models

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