About this Study Set
This study set covers Behavioural Economics through
25 practice questions.
A collection of historical discoveries, key experiments, and influential figures in behavioural economics. Every question includes the correct answer so you can learn as you go — pick any format above to get started.
Questions & Answers
Browse all 25 questions from the
Foundations of Behavioural Economics study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
Which researcher is widely considered the 'father of behavioural economics' for his work on bounded rationality?
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A
Herbert Simon
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B
Daniel Kahneman
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C
Richard Thaler
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D
Amos Tversky
2
What is the name of the 1979 paper by Daniel Kahneman and Amos Tversky that introduced Prospect Theory?
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A
Thinking, Fast and Slow
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B
The Foundations of Choice
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C
Prospect Theory: An Analysis of Decision under Risk
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D
The Endowment Effect
3
Which cognitive bias, first described by Richard Thaler, refers to the tendency to value an object more simply because one owns it?
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A
Anchoring Effect
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B
Endowment Effect
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C
Confirmation Bias
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D
Sunk Cost Fallacy
4
Who was the first behavioural economist to be awarded the Nobel Memorial Prize in Economic Sciences in 2002?
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A
George Akerlof
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B
Daniel Kahneman
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C
Richard Thaler
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D
Robert Shiller
5
In which decade did the field of 'Behavioural Economics' formally emerge as a distinct area of study?
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A
1950s
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B
1970s
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C
1990s
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D
2010s
6
What psychological concept did Daniel Kahneman and Amos Tversky define as the tendency to rely too heavily on the first piece of information offered?
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A
Anchoring
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B
Framing
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C
Availability Heuristic
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D
Loss Aversion
7
Which popular book, co-authored by Richard Thaler and Cass Sunstein, popularized the concept of 'nudge' theory?
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A
Misbehaving
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B
Nudge
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C
Predictably Irrational
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D
Choice Architecture
8
What is the term for the tendency of people to prefer avoiding losses to acquiring equivalent gains?
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A
Risk Neutrality
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B
Loss Aversion
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C
Utility Maximization
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D
Hyperbolic Discounting
9
Which behavioural economist wrote the 2008 book 'Predictably Irrational'?
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A
Dan Ariely
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B
Richard Thaler
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C
Daniel Kahneman
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D
Robert Frank
10
The 'Ultimatum Game' is an experimental economics game first used in 1982 to study what concept?
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A
Fairness
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B
Market Efficiency
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C
Investment Risk
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D
Hyperbolic Discounting
11
Which term did Richard Thaler coin to describe the design of different ways in which choices can be presented to consumers?
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A
Choice Architecture
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B
Decision Mapping
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C
Preference Shaping
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D
Nudge Design
12
In behavioural economics, what term describes the tendency to value immediate rewards more highly than future rewards?
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A
Hyperbolic Discounting
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B
Time Inconsistency
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C
Delayed Gratification
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D
Opportunity Cost
13
Which economist conducted the 'beauty contest' game experiments to study how people anticipate the reasoning of others?
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A
John Maynard Keynes
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B
Daniel Kahneman
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C
Herbert Simon
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D
Vernon Smith
14
What theory suggests that individuals make decisions based on the potential value of losses and gains rather than the final outcome?
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A
Prospect Theory
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B
Expected Utility Theory
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C
Game Theory
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D
General Equilibrium Theory
15
Which cognitive heuristic, identified by Tversky and Kahneman, describes the tendency to estimate the probability of an event based on how easily examples come to mind?
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A
Availability Heuristic
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B
Representativeness Heuristic
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C
Affect Heuristic
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D
Simulation Heuristic
16
What is the term for the observation that people are generally satisfied with a 'good enough' solution rather than the optimal one?
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A
Satisficing
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B
Optimizing
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C
Maximizing
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D
Anchoring
17
Richard Thaler won the Nobel Prize in Economic Sciences in which year?
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A
2017
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B
2002
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C
2015
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D
2020
18
Which experimental method is commonly used in behavioural economics to test how people behave in controlled, incentive-compatible environments?
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A
Laboratory Experiments
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B
Survey Methods
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C
Historical Analysis
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D
Regression Modeling
19
Who is the author of 'Thinking, Fast and Slow', a book that synthesizes decades of behavioural research?
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A
Daniel Kahneman
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B
Amos Tversky
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C
Richard Thaler
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D
Dan Ariely
20
What term describes the phenomenon where individuals are more likely to accept an offer when it is presented as a 'gain' rather than a 'loss'?
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A
Framing Effect
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B
Anchoring Effect
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C
Halo Effect
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D
Dunning-Kruger Effect
21
In 1974, Tversky and Kahneman published a seminal paper in 'Science' magazine about which topic?
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A
Judgment under Uncertainty
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B
The Wealth of Nations
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C
Market Equilibrium
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D
Rational Choice
22
Which behavioural economist focused extensively on the study of 'mental accounting'?
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A
Richard Thaler
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B
Daniel Kahneman
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C
Amos Tversky
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D
George Loewenstein
23
The concept of 'bounded rationality' was first introduced in which decade?
-
A
1950s
-
B
1970s
-
C
1980s
-
D
1990s
24
Which economist is famous for his experimental work in 'market design' and won the Nobel Prize in 2002 alongside Daniel Kahneman?
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A
Vernon Smith
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B
Robert Shiller
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C
George Akerlof
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D
Joseph Stiglitz
25
What name is given to the unit in the UK government established in 2010 to apply behavioural insights to public policy?
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A
Behavioural Insights Team
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B
The Nudge Unit
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C
Policy Labs
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D
Choice Agency
