#1
Which of the following is an example of a heuristic?
Using a mental shortcut to make a quick decision
ExplanationHeuristic involves employing a quick, practical rule for decision-making.
#2
What does the 'availability heuristic' refer to in decision-making?
Making decisions based on the most readily available information
ExplanationAvailability heuristic relies on easily accessible information for decision-making.
#3
Which of the following is NOT a stage in the decision-making process?
Problem avoidance
ExplanationProblem avoidance is not a recognized stage in the decision-making process.
#4
Which of the following is NOT a factor that influences decision-making?
Consensus
ExplanationConsensus is not a direct factor influencing decision-making.
#5
What is 'bounded rationality' in the context of decision-making?
Making decisions within the constraints of limited time, information, and cognitive ability
ExplanationBounded rationality acknowledges limitations on decision-makers.
#6
Which cognitive bias involves overestimating the probability of rare but memorable events?
Availability bias
ExplanationAvailability bias leads to overestimating the likelihood of memorable events.
#7
What is meant by 'decision fatigue'?
The mental exhaustion that occurs after making many decisions
ExplanationDecision fatigue refers to the weariness experienced after prolonged decision-making.
#8
What is 'cognitive dissonance' in decision-making?
The feeling of discomfort when there is a discrepancy between beliefs and actions
ExplanationCognitive dissonance is the discomfort arising from conflicting beliefs and actions in decision-making.
#9
What is the primary difference between 'rational' and 'intuitive' decision-making?
Rational decision-making relies on logic, while intuitive decision-making relies on gut feelings
ExplanationRational decision-making is logic-based, while intuitive decision-making relies on instincts and gut feelings.
#10
What is the 'sunk cost fallacy' in decision-making?
The inclination to continue investing in a failing project because of past investments
ExplanationSunk cost fallacy involves persisting in a failing project due to prior investments.
#11
According to prospect theory, which of these choices best describes how individuals evaluate potential losses and gains?
Individuals weigh losses more heavily than equivalent gains
ExplanationProspect theory emphasizes a greater sensitivity to losses than gains in decision-making.
#12
What is the 'framing effect' in decision-making?
The tendency to make decisions based on how options are presented
ExplanationThe framing effect influences decisions based on how choices are presented or framed.
#13
What role does the prefrontal cortex play in decision-making?
It regulates emotions and impulses, aiding in rational decision-making
ExplanationThe prefrontal cortex helps regulate emotions and impulses, contributing to rational decision-making.
#14
What is the primary difference between 'descriptive' and 'normative' decision theories?
Normative theories focus on how decisions should be made, while descriptive theories focus on how decisions are made in practice
ExplanationNormative theories prescribe ideal decision-making, while descriptive theories observe how decisions are actually made.