QUIZ

Started on Saturday, 15 April 2023, 7:32 PM

State Finished
Completed on Saturday, 15 April 2023, 7:51 PM
Time taken 19 mins 26 secs
Grade 38.00 out of 38.00 (100%)

Question 1

Correct

Mark 1.00 out of 1.00

A decoy effect

a. Is a bias that explains how an irrelevant option can change 

the comparison between other choices

b. Occurs due to the framing of the situation and is a subtype of

framing effect

c. Increases in effect as saliency increases

d. Distracts decision makers through the use of attractive

alternative options

Your answer is correct.

The correct answer is:

Is a bias that explains how an irrelevant option can change the
comparison between other choices

Correct
Marks for this submission: 1.00/1.00.
Question 2

Correct

Mark 1.00 out of 1.00

An indifference curve (I 2 ) has a higher total utility compared to

another indifference curve (I 1 ) if it is (select all that apply)

a. To the left of I 1

b. To the right of I 1 

c. Above and to the right of I 1 

d. Below and to the left of I 1

Your answer is correct.

The correct answers are:

To the right of I 1,

Above and to the right of I 1

Correct
Marks for this submission: 1.00/1.00.

Question 3

Correct

Mark 1.00 out of 1.00

Anchoring (select all that apply)

a. Can be based on relevant or irrelevant information 

b. Connects all relevant values to evaluate related phenomena

c. Improves the accuracy of an individual’s valuations or answers

d. Increase or decrease an individual’s valuations for various 

objects

e. Has been consistently seen in studies 

Your answer is correct.

The correct answers are:
Can be based on relevant or irrelevant information,
Increase or decrease an individual’s valuations for various objects,

Has been consistently seen in studies

Correct
Marks for this submission: 1.00/1.00.
Question 4

Correct

Mark 1.00 out of 1.00

Anticipatory utility

a. Is based on expected or predicted utility 

b. Relates expected pleasure or pain to separate episodes

c. Suggests people do not gain hedonic utility from anticipation

of future events

d. Implies that the probability of winning a lottery is very low and

failure to win causes significant disappointment

Your answer is correct.

The correct answer is:
Is based on expected or predicted utility
Correct
Marks for this submission: 1.00/1.00.

Question 5

Correct

Mark 1.00 out of 1.00

As the difference between actual and desired value increases in

magnitude, the probability of

a. Impulsive behavior increases 

b. Impulsive behavior decreases

c. Rational behavior increase

d. Rational behavior decreases

Your answer is correct.

The correct answer is:

Impulsive behavior increases

Correct
Marks for this submission: 1.00/1.00.
Question 6

Correct

Mark 1.00 out of 1.00

Decision utility

a. Is a choice that does not reflect attitudes 

b. Concerns experienced happiness

c. Does not concern personal choice

d. Is difficult to measure in terms of revealed preference

Your answer is correct.

The correct answer is:

Is a choice that does not reflect attitudes

Correct
Marks for this submission: 1.00/1.00.

Question 7

Correct

Mark 1.00 out of 1.00

Framing effects

a. Can be caused by prior questions, object sizes, and other 

close by factors

b. Are due to conscious decisions and feelings of decision makers

c. Are caused by frame invariance

d. Cause individuals to make consistent choices

Your answer is correct.

The correct answer is:
Can be caused by prior questions, object sizes, and other close by
factors

Correct
Marks for this submission: 1.00/1.00.
Question 8

Correct

Mark 1.00 out of 1.00

Happiness and perceived well-being are

a. Positively correlated with income and time

b. Symmetric reflections of gains and losses

c. Measured accurately through utility theory

d. Reference dependent 

Your answer is correct.

The correct answer is:

Reference dependent

Correct
Marks for this submission: 1.00/1.00.

Question 9
Correct

Mark 1.00 out of 1.00

If a consumer has options (G, P, T) and preferences of (G > T), (P > G),
and (T > P), which, if any, of the four main axioms are violated?

a. Transitivity 

b. Revealed preference

c. Completeness

d. Reflexivity

e. No axioms are violated

Your answer is correct.

The correct answer is:
Transitivity
Correct
Marks for this submission: 1.00/1.00.
Question 10

Correct

Mark 1.00 out of 1.00

In examining the process of decision making under the neoclassical

model, consumers are assumed to have

a. Discount values of future outcomes

b. All of the above 

c. Rationality

d. Beliefs

e. Preferences

Your answer is correct.

The correct answer is:

All of the above

Correct
Marks for this submission: 1.00/1.00.

Question 11
Correct

Mark 1.00 out of 1.00

Loss aversion implies that

a. Gains have a stronger impact on decisions than losses

b. Gains and losses activate and deactivate the same parts of

the brain

c. Losses have a stronger impact on decisions than gains 

d. The mental processing of gains is the opposite of processing

losses

Your answer is correct.

The correct answer is:

Losses have a stronger impact on decisions than gains

Correct
Marks for this submission: 1.00/1.00.
Question 12

Correct

Mark 1.00 out of 1.00

Offering lowball offers, exploiting customer loyalty, and status quo bias
are all results of desires for (select all that apply)

a. Consistency 

b. Prestige

c. Profit

d. Commitment 

Your answer is correct.

The correct answers are:

Commitment,

Consistency

Correct
Marks for this submission: 1.00/1.00.

Question 13
Correct

Mark 1.00 out of 1.00

Status quo bias is a result of

a. Irrationality

b. Lack of willingness to change

c. A desire for safety

d. A desire for consistency 

Your answer is correct.

The correct answer is:
A desire for consistency
Correct
Marks for this submission: 1.00/1.00.
Question 14

Correct

Mark 1.00 out of 1.00

The neoclassical model assumes (select all that apply)

a. Consumers have revealed preferences 

b. Consumers cannot be indifferent between options

c. Consumers choose the best option based on their 

constraints

d. Consumers can rank options according to desirability 

Your answer is correct.

The correct answers are:

Consumers have revealed preferences,

Consumers choose the best option based on their constraints,

Consumers can rank options according to desirability

Correct
Marks for this submission: 1.00/1.00.

Question 15

Correct

Mark 1.00 out of 1.00

The neoclassical model falsely assumes that

a. Unavoidable outcomes can be cancelled or ignored

b. Preferences are determined by attitudes 

c. People have the same attitude to a particular object and

attribute the same value to it

d. An option that is better in one state and at least as good in all

other states should be chosen

Your answer is correct.

The correct answer is:

Preferences are determined by attitudes
Correct
Marks for this submission: 1.00/1.00.
Question 16

Correct

Mark 1.00 out of 1.00

Under the conventional model, it is assumed that

a. Goods can give too much pleasure but excessive consumption

is not harmful

b. Addictions are economic bads

c. Addiction is always bad and abstention is always good

d. More consumption gives more total utility 

Your answer is correct.

The correct answer is:

More consumption gives more total utility

Correct
Marks for this submission: 1.00/1.00.

Question 17

Correct

Mark 1.00 out of 1.00

Under the neoclassical model, consumers should choose a bundle

lying on the indifference curve that

a. Saves the most money for consumption of other goods

b. Is intersected at two points by their budget constraint

c. Is tangent to their budget constraint 

d. Is farthest to the right of all other indifference curves

Your answer is correct.

The correct answer is:

Is tangent to their budget constraint

Correct
Marks for this submission: 1.00/1.00.
Question 18

Correct

Mark 1.00 out of 1.00

Under the neoclassical model, rationality

a. Can be substituted with heuristics almost seamlessly

b. Stresses that individuals have well-formed and consistent 

preferences

c. Stresses that individuals have constantly updating preferences

d. Stresses the suppression of emotional volatility

Your answer is correct.

The correct answer is:

Stresses that individuals have well-formed and consistent preferences

Correct
Marks for this submission: 1.00/1.00.

Question 19

Correct

Mark 1.00 out of 1.00

Under the neoclassical model, the assumption of ______ says that

the same choice problem,

regardless of the problem’s framing or representation, should yield the

same preference

a. Invariance 

b. Cancellation

c. Extensionality

d. Rationality

e. Dominance

Your answer is correct.

The correct answer is:
Invariance
Correct
Marks for this submission: 1.00/1.00.
Question 20

Correct

Mark 1.00 out of 1.00

Volatility in salience and the inevitable roller-coaster ride tends to lead

to

a. Irrational decision making

b. Short-sightedness

c. All of the above 

d. Obsession on specific, salient desires

Your answer is correct.

The correct answer is:

All of the above

Correct
Marks for this submission: 1.00/1.00.

Question 21

Correct

Mark 1.00 out of 1.00

Well-being is judged based on the concepts of (select all that apply)

a. Contrast effects 

b. Hedonic utility

c. Emotional stability

d. Endowment 

e. Instantaneous vs. delayed gratification

Your answer is correct.

The correct answers are:

Endowment,

Contrast effects

Correct
Marks for this submission: 1.00/1.00.
Question 22

Correct

Mark 1.00 out of 1.00

When a purchase causes an impulse that enhances the purchase of a

second, unrelated product, it is said to be due to

a. The compromise effect

b. The vicarious consumption effect

c. The momentum effect 

d. Confusion

Your answer is correct.

The correct answer is:

The momentum effect

Correct
Marks for this submission: 1.00/1.00.

Question 23

Correct

Mark 1.00 out of 1.00

When individuals tend to appraise objects they have come to possess

higher than they did prior, it is known as

a. Addiction

b. The endowment effect 

c. Emotional attachment

d. Excessive attention

Your answer is correct.

The correct answer is:

The endowment effect

Correct
Marks for this submission: 1.00/1.00.
Question 24

Correct

Mark 1.00 out of 1.00

When making a purchase, consumers gain _____ and _____.

(select all that apply)

a. Consumption utility

b. Transaction utility 

c. Acquisition utility 

d. Purchase utility

Your answer is correct.

The correct answers are:

Acquisition utility,

Transaction utility

Correct
Marks for this submission: 1.00/1.00.

Question 25

Correct

Mark 1.00 out of 1.00

When people infer their utility from their actions, it is known as

a. Diagnostic utility 

b. Anticipatory utility

c. Expected utility

d. Derived utility

Your answer is correct.

The correct answer is:

Diagnostic utility

Correct
Marks for this submission: 1.00/1.00.
Question 26

Correct

Mark 1.00 out of 1.00

Which of the following is not a requirement for rationality?

a. Disregard to personal emotions 

b. Disregard to irrelevant factors

c. Attitudes and beliefs are compatible with empirical

observations of the individual

d. Coherent preferences and attitudes

Your answer is correct.

The correct answer is:

Disregard to personal emotions

Correct
Marks for this submission: 1.00/1.00.

Question 27

Correct

Mark 1.00 out of 1.00

Which of the following is not true of expectation effects?

a. Derived utility from activities and consumption is not 

dependent on our expectations

b. Perceived effectiveness of medication is positively correlated

with the medication’s price

c. Expectations are a problem the neoclassical model does not

account for well

d. High expectations of happiness can lead to disappointment

Your answer is correct.

The correct answer is:
Derived utility from activities and consumption is not dependent on
our expectations

Correct
Marks for this submission: 1.00/1.00.
Question 28

Correct

Mark 1.00 out of 1.00

Which of the following is not true of experienced utility?

a. Can be used interchangeably with decision utility 

b. Remembered utility concerns after the experience and is

measured with a memory-based approach like retrospective
evaluation

c. Real-time utility concerns during the experience and measures

using a moment-based approach

d. Experienced utility is concerned more with personal feelings

like happiness

Your answer is correct.

The correct answer is:
Can be used interchangeably with decision utility
Correct
Marks for this submission: 1.00/1.00.

Question 29
Correct

Mark 1.00 out of 1.00

A situation where decision makers avoid a choice due to the number

of options in the choice set being too great is known as a paradox of
choice.

True 

False

The correct answer is 'True'.

Correct
Marks for this submission: 1.00/1.00.
Question 30

Correct

Mark 1.00 out of 1.00

Cold, rational decisions tend to be made under the brain’s reflective

mode while decisions based on emotions or impulses are made
under the brain’s reflexive mode.

True 

False

The correct answer is 'True'.

Correct
Marks for this submission: 1.00/1.00.

Question 31

Correct

Mark 1.00 out of 1.00

Emotion refers to some change in objective experience and are

ineffective tools for dealing

with the challenges of human life.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.

Question 32
Correct

Mark 1.00 out of 1.00

Heuristics are effective rules that simplify the decision-making process

and should be used as frequently as possible.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.
Question 33

Correct

Mark 1.00 out of 1.00

Humans tend to be good at predicting their visceral states and

estimating how long said state will last.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.

Question 34

Correct

Mark 1.00 out of 1.00

Impulsivity is due to visceral factors but is not affected or influenced

by situational factors.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.

Question 35

Correct

Mark 1.00 out of 1.00

More attention and time spent deliberating on a choice always

enhances decision making.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.
Question 36

Correct

Mark 1.00 out of 1.00

Residual utility can be a negative if someone dwells on a bad

experience in the past.

True 

False

The correct answer is 'True'.

Correct
Marks for this submission: 1.00/1.00.

Question 37

Correct

Mark 1.00 out of 1.00

The contrast effect is a direct effect that works in the opposite

direction of an experience.

True

False 

The correct answer is 'False'.

Correct
Marks for this submission: 1.00/1.00.

Question 38
Correct

Mark 1.00 out of 1.00

The usage of heuristics is due to limitations of the human mind and

bounded rationality.

True 

False

The correct answer is 'True'.

Correct
Marks for this submission: 1.00/1.00.