Economics - Advanced Economics - Behavioral economics introduction - Are You Rational?

A quiz exposing common cognitive biases. Q1: 'You find a $20 bill. Do you: a) Treat it carefully (it's money!), b) Spend it immediately on a treat (it's free money!)?' (Most choose b - mental accounting bias). Q2: 'A coffee mug costs $5. You own one. Someone offers $5 to buy yours. Do you sell? Most