#1
Which of the following is a characteristic of bounded rationality?
Making decisions under constraints
ExplanationDecisions made within limited cognitive capacity.
#2
Which of the following is an example of a cognitive bias in decision making?
Preferring options that are presented first in a list
ExplanationBias towards options presented first.
#3
Which of the following is a characteristic of 'rational decision-making models'?
They assume perfect information and utility maximization
ExplanationModels assuming perfect info and utility.
#4
What is 'decision analysis'?
The process of evaluating alternatives to make decisions
ExplanationEvaluating alternatives to make decisions.
#5
What is the concept of 'satisficing' in decision making?
Accepting the first option that meets the minimum criteria
ExplanationChoosing the satisfactory, not optimal, option.
#6
In prospect theory, what does 'loss aversion' refer to?
The tendency to avoid losses more than acquiring equivalent gains
ExplanationPreferring avoiding losses over gaining equivalently.
#7
What is the 'framing effect' in decision making?
The influence of presentation format on decision outcomes
ExplanationHow presentation shapes decision perceptions.
#8
Which of the following best describes 'rational choice theory'?
A theory that assumes individuals make decisions based on perfect information and utility maximization
ExplanationAssumes optimal decisions with perfect info.
#9
What is 'anchoring bias' in decision making?
The tendency to rely too heavily on the first piece of information encountered
ExplanationOverreliance on initial information.
#10
Which of the following is an example of a heuristic in decision making?
Using mental shortcuts to make decisions quickly
ExplanationUsing shortcuts for quick decision making.
#11
What is 'confirmation bias' in decision making?
The tendency to seek out information that confirms preexisting beliefs
ExplanationPreferring information confirming existing beliefs.
#12
What is 'groupthink' in decision-making contexts?
The tendency for group members to conform to a unified viewpoint
ExplanationGroup members conforming to a unified view.
#13
What is 'regret avoidance' in decision making?
The tendency to choose options that minimize potential future regret
ExplanationChoosing to minimize future regret.
#14
What is 'bounded awareness' in decision making?
The tendency to ignore available information when making decisions
ExplanationIgnoring available info during decision-making.