Back to Library

Fundamentals of Behavioural Economics

Behavioural Economics

An introduction to the core concepts and history of behavioural economics.

economics psychology decision-making

10 Questions Easy Ages 12+ Aug 30, 2026

Practice Test PDF Answer Key PDF

Choose a Study Format

Quiz

Test your knowledge with multiple-choice questions and instant feedback.

Flashcards

Flip through cards to review terms, definitions and key concepts.

True or False

Quickly decide if statements are true or false to reinforce understanding.

Match Game

Race against time to match questions with their correct answers.

Study Guide

Read through all topics and answers as a comprehensive study reference.

Listen Mode

Listen to questions and answers read aloud — great for audio learners on the go.

Embed This Study Set

Add this interactive study set to your website or blog — all 6 formats included.

<div data-quixly-id="6614"></div>
<script src="https://www.quixlylearn.com/assets/embed/widget.js"></script>

Learn more about embedding →

About this Study Set

This study set covers Behavioural Economics through 10 practice questions. An introduction to the core concepts and history of 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 10 questions from the Fundamentals of Behavioural Economics study set below. Each question shows the correct answer — select a study format above to practice interactively.

1 Which psychologist and Nobel laureate is widely considered a founding father of behavioural economics for his work on prospect theory?

A John Maynard Keynes
B Daniel Kahneman
C Adam Smith
D Milton Friedman

2 What is the term for the tendency of people to overvalue an object simply because they own it?

A The Endowment Effect
B The Sunk Cost Fallacy
C Anchoring Bias
D Loss Aversion

3 In behavioural economics, what does the term 'nudge' refer to?

A A financial penalty for bad choices
B A physical push to increase productivity
C A subtle policy shift that alters behavior without forbidding options
D A mandatory tax increase

4 Which book, written by Richard Thaler and Cass Sunstein, popularized the concept of 'nudge' theory?

A The Wealth of Nations
B Thinking, Fast and Slow
C Nudge: Improving Decisions About Health, Wealth, and Happiness
D Freakonomics

5 What is the 'Status Quo Bias' in decision-making?

A A preference for change
B A preference for the current state of affairs
C An obsession with social status
D A dislike for technology

6 The concept that people feel the pain of a loss more intensely than they feel the joy of an equivalent gain is known as what?

A Prospect Theory
B Loss Aversion
C The Framing Effect
D Confirmation Bias

7 What is meant by 'Bounded Rationality'?

A The idea that humans make perfectly logical decisions
B The idea that decision-making is limited by information and cognitive capacity
C The belief that emotions are irrelevant to money
D The theory that all markets are efficient

8 What is the 'Anchoring Effect'?

A The tendency to rely too heavily on the first piece of information offered
B The habit of saving money for the future
C The practice of setting high prices for luxury goods
D The fear of making a decision

9 Which term describes the phenomenon where people's choices are influenced by the way information is presented?

A The Framing Effect
B The Availability Heuristic
C Social Proof
D Hindsight Bias

10 In behavioural economics, a 'choice architecture' refers to:

A The physical building design of banks
B The process of organizing the context in which people make decisions
C The study of architectural costs
D The legal structure of contracts

📱

Study on the go

Download Quixly and access all study formats on your phone — anywhere, anytime.