#1
In rational decision making, what is the first step of the decision-making process?
Defining the problem
ExplanationIdentifying and clarifying the issue or challenge to be addressed.
#2
What does the term 'confirmation bias' refer to in the context of decision making?
Seeking information that supports pre-existing beliefs
ExplanationTendency to favor information that confirms existing beliefs or hypotheses.
#3
Which of the following is a characteristic of rational decision making?
Systematic and logical approach
ExplanationFollowing a structured and logical process to reach decisions.
#4
What does the term 'bounded rationality' refer to in decision making?
Limited cognitive abilities and information processing
ExplanationRecognizing the constraints of human cognition and information processing.
#5
What role does the 'availability heuristic' play in decision making?
Weighing the importance of information based on its accessibility in memory
ExplanationTendency to overvalue information that readily comes to mind.
#6
Which of the following is a characteristic of group decision making?
Increased speed and efficiency
ExplanationGroups can generate and evaluate more alternatives quickly.
#7
What is the 'paradox of choice' in decision making?
Having too many alternatives can lead to indecision and dissatisfaction
ExplanationExcessive options can overwhelm, making decision-making harder.
#8
Which decision-making model suggests that individuals make decisions based on their subjective interpretation of a situation?
Intuitive decision making
ExplanationRelies on gut feelings, instincts, and hunches rather than explicit reasoning.
#9
What is the concept of 'satisficing' in the context of decision making?
Accepting a satisfactory but not necessarily optimal solution
ExplanationChoosing a solution that meets the minimum criteria rather than maximizing utility.
#10
According to the 'prospect theory,' how do individuals typically evaluate potential losses and gains?
Subjectively, with greater sensitivity to losses than gains
ExplanationPeople are more averse to losses than they are motivated by equivalent gains.
#11
In the context of decision making, what is 'escalation of commitment'?
Increasing investment in a failing course of action
ExplanationPersisting with a chosen course of action despite evidence suggesting it's failing.
#12
According to game theory, what is a 'zero-sum game'?
A game where one player's gain is exactly balanced by another player's loss
ExplanationTotal gains and losses among participants sum to zero.