Decision Making: The Ultimate Guide to Making Choices

Question 1

The process of evaluating the potential costs and benefits of different options is known as:

Accepted Answer

Evaluation

Answer

Formulation

Answer

Implementation

Answer

Monitoring

Question 2

The tendency to rely on easily accessible information when making decisions is known as the:

Accepted Answer

Availability heuristic

Answer

Representativeness heuristic

Answer

Framing effect

Answer

Gambler's fallacy

Question 3

Which decision-making style is characterized by a thorough analysis and consideration of multiple perspectives?

Accepted Answer

Analytic

Answer

Intuitive

Answer

Passive

Answer

Avoidant

Question 4

Which of the following is NOT a stage of the naturalistic decision-making model?

Accepted Answer

Hypothesis testing

Answer

Cue detection

Answer

Pattern recognition

Answer

Response evaluation

Question 5

The cognitive shortcuts used to make quick decisions under time constraints are known as:

Accepted Answer

Heuristics

Answer

Schemas

Answer

Scripts

Answer

Algorithms

Question 6

In decision-making, 'bounded rationality' refers to:

Accepted Answer

People make decisions based on available information and limited resources.

Answer

People always make logical decisions.

Answer

People can always make the best decisions.

Answer

Emotions alone guide people's decisions.

Question 7

You're faced with two job offers. Outline the decision-making strategy you'd use. Explain how you'd weigh the pros and cons, and consider your values.

Accepted Answer

List the advantages and disadvantages of each offer, considering factors like salary, benefits, career growth, work-life balance, and company culture.

Answer

Choose the offer with the highest salary, regardless of other factors.

Answer

Let your feelings guide your decision and pick the offer that 'feels' right.

Answer

Flip a coin to make the decision.

Question 8

How do emotions impact decision-making?

Accepted Answer

Emotions can both help and hinder decision-making, depending on the situation.

Answer

Emotions have no effect on decision-making.

Answer

Emotions always lead to poor decision-making.

Question 9

Which cognitive bias refers to our tendency to perceive events as more likely to occur if we can easily remember examples of them?

Accepted Answer

Availability heuristic

Answer

Confirmation bias

Answer

Anchoring bias

Answer

Framing effect

Question 10

What is the term for the mental shortcut that involves using a simple rule to make decisions, even if it may not lead to the optimal outcome?

Accepted Answer

Heuristic

Answer

Probability

Answer

Bias

Answer

Algorithm

Question 11

Which decision-making style is characterized by a strong emphasis on gathering and analyzing information?

Accepted Answer

Analytical

Answer

Dependent

Answer

Intuitive

Answer

Avoidant

Question 12

What region of the brain plays a crucial role in decision-making by performing executive functions such as planning and evaluating outcomes?

Accepted Answer

Prefrontal cortex

Answer

Storage of long-term memories

Answer

Processing of emotions

Question 13

Which of the following is a factor that can influence the framing effect in decision-making?

Accepted Answer

The manner in which choices are presented

Answer

The size of the stakes involved

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The individual's personality

Question 14

What is the primary purpose of prospect theory in decision-making?

Accepted Answer

To predict how individuals value gains and losses relative to a reference point

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To develop strategies for minimizing the influence of heuristics

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To explain the neural basis of decision-making

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To identify the cognitive biases that influence decision-making

Question 15

What is the role of intuition in decision-making?

Accepted Answer

It can provide insights and suggest solutions that may not be immediately apparent through logical analysis

Answer

It is always a more reliable guide than rational analysis

Question 16

Which of the following is NOT a common cognitive bias that can influence decision-making?

Accepted Answer

Rational bias

Answer

Confirmation bias

Answer

Framing effect

Answer

Hindsight bias

Question 17

When faced with multiple options, the process of evaluating the potential advantages and disadvantages of each option is referred to as:

Accepted Answer

Pros and cons analysis

Answer

Heuristic analysis

Answer

Expected value analysis

Answer

Risk-reward analysis

Question 18

Which of the following is a recommended strategy for making well-informed and rational decisions?

Accepted Answer

Seeking diverse perspectives

Answer

Making decisions under extreme pressure

Answer

Relying solely on intuition

Answer

Ignoring potential risks

Question 19

The tendency to overestimate the probability of events that are vivid or personally meaningful is known as the:

Accepted Answer

Availability heuristic

Answer

Representativeness heuristic

Answer

Framing effect

Answer

Anchoring bias

Question 20

Which of the following is a potential drawback of making decisions based on biased information?

Accepted Answer

Increased likelihood of poor decision-making

Answer

Improved problem-solving skills

Answer

Enhanced creativity

Answer

Increased self-confidence

Question 21

The tendency to maintain a decision even when confronted with contradictory evidence is known as:

Accepted Answer

Confirmation bias

Answer

Hindsight bias

Answer

Availability heuristic

Answer

Framing effect

Question 22

Which of the following is an advantage of utilizing decision-making tools, such as decision matrices?

Accepted Answer

Facilitates structured evaluation of options

Answer

Increases the speed of decision-making

Answer

Eliminates all cognitive biases

Answer

Guarantees optimal decisions

Question 23

The process of systematically evaluating alternatives, acquiring information, and weighing pros and cons is referred to as:

Accepted Answer

Rational decision-making

Answer

Cognitive bias

Answer

Heuristic-based decision-making

Answer

Intuitive decision-making

Question 24

Which of these is NOT a common mental shortcut used in decision-making?

Accepted Answer

Linear Regression

Answer

Availability Heuristic

Answer

Anchoring Effect

Answer

Representativeness Heuristic

Question 25

What is it called when you carefully think about the good and bad points of each choice before making a decision?

Accepted Answer

Deliberative Decision-Making

Answer

Satisficing

Answer

Intuitive Decision-Making

Answer

Elimination by Aspects

Question 26

Imagine hearing a high price for a car and then thinking all car prices are high. This is an example of:

Accepted Answer

Anchoring Effect

Answer

Confirmation Bias

Answer

Framing Effect

Answer

Availability Heuristic

Question 27

What's it called when you choose something 'good enough' instead of searching for the absolute best option?

Accepted Answer

Satisficing

Answer

Elimination by Aspects

Answer

Deliberation

Answer

Maximizing

Question 28

What's the main difference between 'rational' and 'bounded rationality' in decision-making?

Accepted Answer

Bounded rationality considers real-life limits like time and information

Answer

Rational decisions don't use any information

Answer

Cognitive biases are only present in rational decision-making

Answer

Emotions only affect bounded rationality

Question 29

Which of these is a good strategy for making better decisions?

Accepted Answer

Getting opinions from different people

Answer

Pushing down your emotions

Answer

Always trusting your gut feeling

Answer

Ignoring your biases

Question 30

Ever noticed how after something happens, it seems more obvious than it did before? This is called:

Accepted Answer

Hindsight Bias

Answer

Confirmation Bias

Answer

Framing Effect

Answer

Illusion of Control

Question 31

Which of these is NOT a common bias affecting our decisions?

Accepted Answer

Linear Distortion

Answer

Hindsight Bias

Answer

Availability Heuristic

Answer

Confirmation Bias

Question 32

What's a potential advantage of using mental shortcuts (heuristics) when making decisions?

Accepted Answer

They save time and effort

Answer

They always lead to the most accurate decision

Answer

They guarantee completely objective choices

Answer

They ensure you've considered every detail

Question 33

What do we call the decision-making style where you carefully list the pros and cons of each option?

Accepted Answer

Analytic Decision-Making

Answer

Heuristic Decision-Making

Answer

Intuitive Decision-Making

Answer

Satisficing Decision-Making

Question 34

What is a helpful strategy for making better decisions?

Accepted Answer

Considering different viewpoints.

Answer

Making decisions quickly without thinking.

Answer

Ignoring negative information.

Answer

Avoiding input from others.

Question 35

The tendency to rely on information that easily comes to mind is known as:

Accepted Answer

Availability heuristic.

Answer

Confirmation bias.

Answer

Anchoring bias.

Answer

Framing effect.

Question 36

When we choose a good enough option without looking at all the possibilities, it's called:

Accepted Answer

Satisficing.

Answer

Optimizing.

Answer

Maximizing.

Answer

Compensating.

Question 37

The tendency for the way information is presented to influence our choices is called:

Accepted Answer

Framing effect.

Answer

Anchoring bias.

Answer

Hindsight bias.

Answer

Confirmation bias.

Question 38

The cognitive bias that makes us favor recent or easily remembered information is called:

Accepted Answer

Availability heuristic.

Answer

Framing effect.

Answer

Anchoring bias.

Answer

Confirmation bias.

Question 39

What is one strategy to reduce the impact of cognitive biases on decisions?

Accepted Answer

Seeking out different viewpoints.

Answer

Relying on gut feelings.

Answer

Making decisions based only on emotions.

Answer

Ignoring viewpoints that disagree with ours.

Question 40

According to Prospect Theory, people are more likely to take risks when:

Accepted Answer

Potential gains are large.

Answer

Potential losses are large.

Answer

Potential losses are small.

Answer

Potential gains are small.

Question 41

Which of the following is an internal influence on decision-making?

Accepted Answer

Values

Answer

Legal regulations

Answer

Social pressure

Answer

Cultural norms

Question 42

Heuristic decision-making is characterized by:

Accepted Answer

Using mental shortcuts and rules of thumb.

Answer

Always being the most accurate approach.

Answer

Being completely free of biases or errors.

Answer

Only being used by experts in decision-making.

Question 43

Which of these is a key ethical consideration in decision-making?

Accepted Answer

Respect for autonomy

Answer

Cost-benefit analysis

Answer

Speed of decision

Answer

Personal gain

Question 44

A possible consequence of poor decision-making can be:

Accepted Answer

Regret and missed opportunities.

Answer

Financial reward.

Answer

Increased confidence.

Answer

Always success.

Question 45

A mental representation of a decision-making problem is called a:

Accepted Answer

Mental model

Answer

Pros and cons list

Answer

Decision tree

Answer

Cost-benefit analysis

Question 46

Which of the following is an example of a heuristic?

Accepted Answer

Rule of thumb

Answer

Monte Carlo simulation

Answer

Neural network

Answer

Linear regression

Question 47

The tendency to avoid making risky decisions is known as:

Accepted Answer

Risk aversion

Answer

Ambiguity aversion

Answer

Loss aversion

Answer

Risk-seeking

Question 48

Which factor can influence the framing effect?

Accepted Answer

Wording of options

Answer

Time pressure

Answer

Personal values

Answer

Number of options

Question 49

The cognitive process of evaluating potential decision outcomes is called:

Accepted Answer

Expected value analysis

Answer

Satisficing

Answer

Intuition

Answer

Bounded rationality

Question 50

Which of the following is NOT a limitation of decision-making under uncertainty?

Accepted Answer

Complete information

Answer

Time constraints

Answer

Cognitive limitations

Answer

Emotional factors