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The Psychology of Economic Opportunity

Description: This quiz is designed to assess your understanding of the psychological factors that influence economic opportunity.
Number of Questions: 15
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Tags: economics economic psychology psychology of economic opportunity
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Which of the following is NOT a psychological factor that influences economic opportunity?

  1. Self-efficacy

  2. Locus of control

  3. Risk aversion

  4. Intelligence


Correct Option: D
Explanation:

Intelligence is not a psychological factor that directly influences economic opportunity. However, it can be a factor in determining an individual's ability to acquire the skills and knowledge necessary to succeed in the economy.

People with a strong sense of self-efficacy are more likely to:

  1. Set challenging goals for themselves

  2. Persist in the face of obstacles

  3. Be optimistic about their chances of success

  4. All of the above


Correct Option: D
Explanation:

People with a strong sense of self-efficacy are more likely to set challenging goals for themselves, persist in the face of obstacles, and be optimistic about their chances of success.

Individuals with an internal locus of control believe that:

  1. Their success or failure is determined by their own actions

  2. Their success or failure is determined by external factors

  3. Their success or failure is determined by a combination of internal and external factors

  4. None of the above


Correct Option: A
Explanation:

Individuals with an internal locus of control believe that their success or failure is determined by their own actions, rather than by external factors.

Risk aversion is the tendency to:

  1. Avoid taking risks

  2. Seek out risks

  3. Be indifferent to risks

  4. None of the above


Correct Option: A
Explanation:

Risk aversion is the tendency to avoid taking risks, even when the potential rewards are high.

Which of the following is NOT a way to promote economic opportunity?

  1. Investing in education and training

  2. Providing access to capital

  3. Reducing discrimination

  4. Increasing taxes


Correct Option: D
Explanation:

Increasing taxes is not a way to promote economic opportunity. In fact, it can have the opposite effect by discouraging investment and job creation.

The psychology of economic opportunity is a relatively new field of study.

  1. True

  2. False


Correct Option: A
Explanation:

The psychology of economic opportunity is a relatively new field of study, with most of the research being conducted in the past 20 years.

What is the name of the psychological theory that suggests that people's beliefs about their own abilities and skills can influence their economic outcomes?

  1. Self-efficacy theory

  2. Locus of control theory

  3. Risk aversion theory

  4. Prospect theory


Correct Option: A
Explanation:

Self-efficacy theory suggests that people's beliefs about their own abilities and skills can influence their economic outcomes. For example, people with a high sense of self-efficacy are more likely to set challenging goals for themselves, persist in the face of obstacles, and be optimistic about their chances of success.

Which of the following is NOT a psychological factor that can influence an individual's economic opportunities?

  1. Locus of control

  2. Self-esteem

  3. Risk aversion

  4. Time preference


Correct Option: B
Explanation:

Self-esteem is a psychological factor that can influence an individual's overall well-being, but it is not directly related to economic opportunities.

According to prospect theory, people are more sensitive to:

  1. Gains

  2. Losses

  3. Both gains and losses

  4. None of the above


Correct Option: B
Explanation:

According to prospect theory, people are more sensitive to losses than they are to gains. This means that they are more likely to avoid losses than they are to seek out gains.

Which of the following is NOT a way to overcome psychological barriers to economic opportunity?

  1. Providing access to education and training

  2. Changing people's beliefs about their own abilities

  3. Reducing discrimination

  4. Increasing taxes


Correct Option: D
Explanation:

Increasing taxes is not a way to overcome psychological barriers to economic opportunity. In fact, it can have the opposite effect by discouraging investment and job creation.

The psychology of economic opportunity is a complex and multifaceted field of study.

  1. True

  2. False


Correct Option: A
Explanation:

The psychology of economic opportunity is a complex and multifaceted field of study, with a wide range of factors that can influence an individual's economic outcomes.

Which of the following is NOT a psychological factor that can influence an individual's economic opportunities?

  1. Locus of control

  2. Self-efficacy

  3. Risk aversion

  4. Intelligence


Correct Option: D
Explanation:

Intelligence is a cognitive factor that can influence an individual's ability to acquire the skills and knowledge necessary to succeed in the economy, but it is not a psychological factor that directly influences economic opportunities.

According to self-efficacy theory, people with a high sense of self-efficacy are more likely to:

  1. Set challenging goals for themselves

  2. Persist in the face of obstacles

  3. Be optimistic about their chances of success

  4. All of the above


Correct Option: D
Explanation:

According to self-efficacy theory, people with a high sense of self-efficacy are more likely to set challenging goals for themselves, persist in the face of obstacles, and be optimistic about their chances of success.

Which of the following is NOT a way to promote economic opportunity?

  1. Investing in education and training

  2. Providing access to capital

  3. Reducing discrimination

  4. Increasing the minimum wage


Correct Option: D
Explanation:

Increasing the minimum wage is not a way to promote economic opportunity. In fact, it can have the opposite effect by discouraging job creation.

The psychology of economic opportunity is a relatively new field of study, with most of the research being conducted in the past 20 years.

  1. True

  2. False


Correct Option: A
Explanation:

The psychology of economic opportunity is a relatively new field of study, with most of the research being conducted in the past 20 years.

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