Which of the following is a factor that can influence decision making?
Emotions
Gravity
Photosynthesis
Weather patterns
#2
What does the term 'bounded rationality' refer to in decision making?
The idea that people's rationality is limited by constraints such as cognitive abilities and time
The concept of always making perfectly rational decisions
The principle of ignoring rational thought in decision making
The tendency to rely solely on intuition in decision making
#3
In decision theory, what does 'satisficing' mean?
Selecting the best possible option
Choosing an option that meets minimum requirements rather than the optimal solution
Avoiding making a decision altogether
Sticking to one's initial decision regardless of new information
#4
What is 'anchoring bias' in the context of decision making?
The tendency to rely heavily on the first piece of information encountered when making decisions
The inclination to make decisions based solely on gut feelings
The habit of seeking confirmation for pre-existing beliefs rather than considering contrary evidence
The tendency to overestimate one's own abilities and knowledge
#5
What is the 'availability heuristic' in decision making?
The tendency to overestimate the likelihood of events based on their availability in memory
The practice of making decisions based on the most readily available information
The inclination to favor recent information over historical data in decision making
The habit of avoiding making decisions altogether
#6
What role does 'groupthink' play in decision making?
It encourages diverse perspectives and enhances decision outcomes
It leads to more cautious decision making
It can result in flawed decisions due to pressure for consensus within a group
It has no impact on decision-making processes
#7
What is 'loss aversion' in decision-making psychology?
The tendency to take more risks when facing potential losses
The preference for avoiding losses over acquiring equivalent gains
The tendency to make decisions based solely on potential gains
The inclination to prioritize short-term gains over long-term benefits
#8
Which of the following is NOT a step typically involved in the rational decision-making model?
Evaluating alternatives
Identifying the decision
Seeking validation from peers
Assessing the consequences
#9
What is 'confirmation bias' in decision making?
The tendency to seek out information that confirms one's pre-existing beliefs and ignore contrary evidence
The inclination to give more weight to recent information than to past experiences
The habit of making decisions based solely on emotions
The tendency to be overly influenced by the opinions of others
#10
What is 'bounded awareness' in decision making?
The tendency to make decisions based solely on the information readily available
The tendency to overlook relevant information due to focusing too narrowly on a few key factors
The habit of avoiding making decisions altogether
The tendency to rely solely on intuition in decision making
#11
Which of the following is a characteristic of a 'risky shift' in group decision making?
Groups tend to make more conservative decisions than individuals
Groups tend to make riskier decisions than individuals
Groups are less likely to make decisions compared to individuals
Groups tend to make decisions faster than individuals
#12
What is 'prospect theory' and how does it differ from expected utility theory?
Prospect theory suggests that people make decisions based on potential gains and losses, whereas expected utility theory assumes decision makers are entirely rational and always choose the option with the highest expected utility.
Prospect theory assumes decision makers are entirely rational and always choose the option with the highest expected utility, whereas expected utility theory suggests that people make decisions based on potential gains and losses.
Both prospect theory and expected utility theory emphasize the importance of emotions in decision making.
Both prospect theory and expected utility theory assume decision makers have complete information when making choices.
#13
What is the 'endowment effect' and how does it influence decision making?
It is the tendency to undervalue objects or assets simply because they are owned.
It is the tendency to overvalue objects or assets simply because they are owned.
It is the tendency to prioritize long-term gains over short-term benefits.
It is the tendency to make decisions based solely on emotional considerations.