#1
Which of the following best defines decision making?
A and B are correct
ExplanationDecision making involves evaluating alternatives and choosing a course of action.
#2
Which of the following is a technique used to facilitate group decision making by generating a large number of ideas for solving a problem?
Brainstorming
ExplanationBrainstorming fosters creativity and generates diverse ideas within a group setting.
#3
In strategic decision making, what does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
ExplanationSWOT analysis assesses internal strengths and weaknesses along with external opportunities and threats.
#4
In decision making, what does the term 'opportunity cost' refer to?
The cost of not choosing the next best alternative
ExplanationOpportunity cost is the value of the next best alternative forgone when a decision is made.
#5
Which method is often used in business for comparing the financial outcomes of different decisions by listing all costs and benefits?
Cost-benefit analysis
ExplanationCost-benefit analysis quantifies and compares the financial gains and losses associated with different decisions.
#6
Which model is based on the premise that decision making is not rational and is shaped by bounded rationality?
Administrative model
ExplanationThe administrative model acknowledges limitations in rational decision making.
#7
In decision making, what does the 'satisficing' strategy entail?
Choosing the first option that meets the minimum criteria
ExplanationSatisficing involves accepting an option that meets acceptable criteria rather than seeking the optimal choice.
#8
What impact does cognitive bias have on decision making?
It can lead to errors in judgment and decision making
ExplanationCognitive bias introduces systematic errors in reasoning and decision making.
#9
What role does feedback play in the decision-making process?
It helps in adjusting future decisions based on past outcomes
ExplanationFeedback informs future decisions by providing information about past outcomes.
#10
Which approach to decision making focuses on the outcomes and determines the best choice by calculating the expected values?
Quantitative approach
ExplanationThe quantitative approach assesses decisions by quantifying and comparing potential outcomes.
#11
How do group decisions generally compare to individual decisions?
They can benefit from diverse perspectives but may suffer from groupthink
ExplanationGroup decisions incorporate diverse viewpoints but may be susceptible to conformity and groupthink.
#12
Which theory suggests that individuals assess their decision-making outcomes based on perceived gains and losses?
Prospect Theory
ExplanationProspect Theory proposes that people evaluate decisions based on potential losses and gains rather than final outcomes.
#13
In the context of ethical decision making, what does the term 'utilitarianism' refer to?
Making decisions that result in the greatest good for the greatest number of people
ExplanationUtilitarianism prioritizes actions that maximize overall happiness or well-being.
#14
In the context of ethical decision making, which principle emphasizes the importance of the intention behind actions rather than the actions' outcomes?
Deontology
ExplanationDeontology prioritizes moral duties and intentions over outcomes when making ethical decisions.
#15
What is the primary focus of normative decision theory?
Prescribing how decisions should be made to be rational
ExplanationNormative decision theory aims to establish principles for making rational decisions.
#16
Which concept in decision making is concerned with the fairness or equity of the decision process and outcome?
Distributive justice
ExplanationDistributive justice evaluates decisions based on the fairness and equity of their outcomes.