Unit 3: Behavioral Economics & Consumer Skills Vocabulary

This set of vocabulary flashcards covers key concepts in behavioral economics, cognitive biases, and consumer protection strategies based on the Unit 3 curriculum.

Behavioral Economics

The study of why people make money decisions.

Influence

Something that changes the way you think or act.

Bias

A thinking habit that can affect your decisions.

Cognitive Bias

A thinking mistake that affects your decisions.

Confirmation Bias

Looking for information that supports what you already believe.

Authority Bias

Believing something because an expert or celebrity says it.

Herd Mentality

Following what other people are doing.

FOMO

Fear of Missing Out!

Loss Aversion

Wanting to avoid losing more than wanting to gain.

Sunk Cost Fallacy

Continuing because you've already spent money or time.

Endowment Effect

Thinking something you own is worth more because it's yours.

Overconfidence Bias

Thinking you know more than you actually do.

Overprecision

Being too sure your prediction is correct.

Hedonic Adaptation

Getting used to something new so it no longer feels exciting.

Social Media Marketing

Advertising through social media.

Multi-Level Marketing Company

A company that sells products through people who earn money by selling products and by recruiting other people to join the business.

Pyramid Scheme

An illegal business where people make money mainly by recruiting others instead of selling real products or services. Eventually, most people lose money.

Identity Theft

Money received from working a job.

Data Breach

When personal information is stolen from a company.

Scam

A trick used to steal your money or information.

Phishing Scam

Fake emails or texts that try to steal your information.

2-Factor Authentication

A security feature that requires two ways to prove your identity before you can log in to an account.