#1
In decision theory, what does 'expected utility' represent?
The guaranteed outcome of a decision
The average outcome weighted by probabilities
The maximum potential outcome
The minimum acceptable outcome
#2
What is the 'Bystander Effect' and how does it relate to decision-making?
The tendency to avoid making decisions in a group
The likelihood of individuals to intervene decreases as the number of bystanders increases
The positive impact of collective decision-making
The tendency to follow the majority decision blindly
#3
What is the role of regret in decision-making according to decision theory?
Regret has no impact on decision-making
Regret influences decision-making by avoiding risky choices
Regret only affects emotional decisions
Regret is only relevant in personal decisions
#4
What is the 'prospect theory' in decision-making?
The theory that individuals always make rational decisions
The theory that individuals weigh potential losses more heavily than potential gains
The theory that individuals avoid making decisions
The theory that individuals always seek maximum gains
#5
In decision-making, what is 'loss aversion'?
The tendency to avoid making decisions
The tendency to weigh potential losses more heavily than potential gains
The preference for long-term gains over short-term gains
The avoidance of decision making altogether
#6
In decision making, what is a heuristic?
A systematic and logical approach
A rule of thumb or mental shortcut
A statistical method
A mathematical equation
#7
What is the concept of 'opportunity cost' in decision making?
The total cost of an opportunity
The value of the best alternative forgone
The cost of seizing an opportunity
The monetary gain from an opportunity
#8
What is the 'Paradox of Choice' in decision making?
Having too few options leads to dissatisfaction
Having too many options leads to paralysis
Having no options leads to frustration
Having unlimited options leads to optimal decisions
#9
Which decision-making model involves assessing alternatives based on a set of criteria to reach an optimal choice?
Intuitive decision-making
Rational decision-making
Emotional decision-making
Behavioral decision-making
#10
What role does emotion play in decision making?
Emotions have no impact on decision making
Emotions can influence decisions both positively and negatively
Emotions only affect irrational decisions
Emotions are only relevant in personal decisions
#11
Which cognitive bias involves giving preference to information that confirms pre-existing beliefs?
Confirmation bias
Anchoring bias
Availability bias
Hindsight bias
#12
What is the 'sunk cost fallacy' in decision making?
Prioritizing costs that cannot be recovered
Ignoring costs already incurred
Estimating future costs
Considering all costs equally
#13
What is the 'Cobra Effect' in decision-making?
An unexpected negative consequence of a well-intentioned decision
A positive outcome from a risky decision
The tendency to avoid making decisions
An unforeseen positive consequence of a decision
#14
Which type of decision-making involves relying on intuition, gut feeling, and personal judgment?
Rational decision-making
Emotional decision-making
Analytical decision-making
Intuitive decision-making
#15
Which bias involves relying on the first piece of information encountered when making decisions?
Confirmation bias
Anchoring bias
Hindsight bias
Recency bias