Decision Making: A Guide to Making Choices

Question 1

Which type of decision-making involves significant risk and uncertainty?

Accepted Answer

Non-programmed decision

Answer

Programmed decision

Answer

Contingency decision

Answer

Heuristic decision

Question 2

Which of the following factors does NOT significantly influence decision-making?

Accepted Answer

Astrological signs

Answer

Personality traits

Answer

Cognitive biases

Answer

Cultural background

Question 3

What is the primary purpose of cognitive heuristics in decision-making?

Accepted Answer

To simplify and expedite the decision-making process

Answer

To guarantee optimal decision outcomes

Answer

To eliminate cognitive biases

Answer

To provide a scientific basis for decision-making

Question 4

Which cognitive bias prompts individuals to overestimate the likelihood of events that are vivid and emotionally charged?

Accepted Answer

Availability heuristic

Answer

Anchoring bias

Answer

Confirmation bias

Answer

Framing effect

Question 5

What is the core idea of the rational model of decision-making?

Accepted Answer

It provides a step-by-step framework for making optimal decisions.

Answer

It assumes that individuals always make irrational choices.

Answer

It explains how emotions drive decision-making.

Answer

It describes how people make decisions under conditions of uncertainty.

Question 6

What is the key difference between risk aversion and risk-seeking?

Accepted Answer

Risk aversion involves avoiding uncertainty, while risk-seeking involves embracing uncertainty.

Answer

Risk aversion involves embracing uncertainty, while risk-seeking involves avoiding uncertainty.

Answer

Risk aversion and risk-seeking are essentially the same concept.

Answer

Neither risk aversion nor risk-seeking is a valid concept.

Question 7

What is the role of emotions in decision-making?

Accepted Answer

Emotions can influence how we perceive information and evaluate choices

Answer

Emotions can help us make better decisions

Answer

Emotions can solely interfere with rational decision-making

Answer

Emotions have no role in decision-making

Question 8

Which of the following is not a recommended strategy for enhancing decision-making abilities?

Accepted Answer

Rely solely on intuition

Answer

Gather relevant information

Answer

Recognize and mitigate biases

Answer

Consider the potential long-term consequences

Question 9

Which type of decision is not characterized by a clear set of rules or procedures?

Accepted Answer

Non-programmed

Answer

Programmed

Answer

Routine

Answer

Strategic

Question 10

What is the initial stage in the decision-making process called?

Accepted Answer

Problem identification

Answer

Alternative generation

Answer

Alternative evaluation

Answer

Solution selection

Question 11

Which of the following is not considered a significant factor that influences decision-making?

Accepted Answer

Astrological sign

Answer

Personal values

Answer

Cognitive biases

Answer

Personality

Question 12

Which decision-making strategy involves selecting a satisfactory option rather than pursuing an optimal solution?

Accepted Answer

Satisficing

Answer

Maximizing

Answer

Minizing

Answer

Eliminating all risks

Question 13

What is a key advantage of utilizing a decision matrix?

Accepted Answer

It enables a logical comparison of alternatives

Answer

It eliminates the requirement to evaluate trade-offs

Answer

It guarantees the best possible decision will be made

Answer

It simplifies decision-making by removing the need for structured analysis

Question 14

In the context of decision-making, what is the role of intuition?

Accepted Answer

It can offer valuable insights

Answer

It should be the primary basis for making important decisions

Answer

It is not a credible source of information

Answer

It should only be considered as a last resort

Question 15

What is decision-making and why is it important in our everyday lives?

Accepted Answer

Decision-making is the process of identifying a problem, considering options, and choosing a course of action.

Answer

Decision-making is simply the act of choosing between two or more options.

Answer

Decision-making is the ability to make quick and impulsive choices.

Question 16

How do affect heuristics influence decision-making?

Accepted Answer

Affect heuristics are shortcuts that use emotions to simplify decision-making.

Answer

Affect heuristics always lead to the best decisions.

Answer

Affect heuristics should never be used in decision-making.

Answer

Affect heuristics have no impact on decision quality.

Question 17

In the post-decision phase, cognitive dissonance plays a role in motivating individuals to:

Accepted Answer

Seek out information that supports their decision.

Answer

Avoid considering alternative options.

Answer

Regret their decision.

Answer

Make no significant changes to their decision.

Question 18

How do framing effects influence the way we make decisions?

Accepted Answer

They alter how we perceive the risks and benefits of different choices.

Answer

They remove any biases that might affect our thinking.

Answer

They change the options that are available to us.

Question 19

What is the primary goal of the rational decision-making model?

Accepted Answer

To maximize expected utility

Answer

To minimize risk

Answer

To reduce cognitive dissonance

Answer

To avoid conflict

Question 20

What is the role of heuristics in decision making?

Accepted Answer

They simplify the process, but may not guarantee optimal outcomes

Answer

They guarantee optimal outcomes

Answer

They eliminate cognitive biases

Answer

They are always reliable

Question 21

What is the difference between a compensatory and a non-compensatory decision-making strategy?

Accepted Answer

Compensatory strategies allow for trade-offs, while non-compensatory strategies do not

Answer

Non-compensatory strategies allow for trade-offs, while compensatory strategies do not

Answer

Compensatory strategies guarantee optimal outcomes, while non-compensatory strategies do not

Answer

Non-compensatory strategies guarantee optimal outcomes, while compensatory strategies do not

Question 22

What is the prospect theory?

Accepted Answer

A theory that explains how people make decisions under risk and uncertainty

Answer

A theory that explains how people make decisions under certainty

Answer

A theory that explains how people make decisions in social situations

Answer

A theory that explains how people make decisions in the absence of information

Question 23

What is the role of framing in decision making?

Accepted Answer

It can influence which option people choose, even if the underlying options are objectively the same

Answer

It has no effect on decision making

Answer

It always leads to better decisions

Answer

It guarantees that people will make rational choices

Question 24

When faced with a complex decision that raises ethical concerns, which action should be prioritized?

Accepted Answer

Consulting established ethical principles and guidelines

Answer

Seeking approval from others

Answer

Relying solely on personal preferences

Answer

Trusting intuition without further analysis

Question 25

When faced with uncertainty, which strategy is crucial for minimizing risk and making informed decisions?

Accepted Answer

Thoroughly gathering and analyzing relevant information

Answer

Eliminating all potential risks

Answer

Relying solely on intuition

Answer

Assigning all decision-making to external experts

Question 26

What is the best definition of intuition?

Accepted Answer

A gut feeling or hunch that guides our decisions

Answer

A logical thought process that leads to a decision

Answer

A random guess with no basis in experience or knowledge

Question 27

What is a benefit of using satisficing as a decision-making strategy?

Accepted Answer

It helps save time and effort.

Answer

It always leads to the best possible outcome.

Answer

It is best suited for complex and important decisions.

Answer

It prevents the possibility of making a bad decision.

Question 28

As the initial step in the process of decision-making, we aim to:

Accepted Answer

Pinpoint the problem

Answer

Weigh the available options

Answer

Choose a specific course of action

Answer

Put the decision into action

Question 29

A decision characterized by a clear objective and a limited number of evident choices is referred to as:

Accepted Answer

Programmed decision

Answer

Non-programmed decision

Answer

Contingency decision

Answer

Satisficing decision

Question 30

Which cognitive bias involves overestimating the probability of events that are vivid and memorable?

Accepted Answer

Availability heuristic

Answer

Framing effect

Answer

Confirmation bias

Answer

Hindsight bias

Question 31

The decision-making strategy of selecting the first option that meets a certain minimum standard is known as:

Accepted Answer

Satisficing

Answer

Optimization

Answer

Elimination by aspects

Answer

Weighted average

Question 32

Unconscious processes play a role in decision-making by:

Accepted Answer

Influencing our preferences and biases

Answer

Being solely responsible for all our decisions

Answer

Having no involvement whatsoever in decision-making

Answer

Always leading to better decision-making

Question 33

Which decision-making strategy involves breaking down a problem into smaller, more manageable steps?

Accepted Answer

Means-ends analysis

Answer

Satisficing

Answer

Intuition

Answer

Elimination by aspects

Question 34

Which of the following is an advantage of using a decision matrix?

Accepted Answer

It facilitates a systematic comparison of options

Answer

It eliminates the need for quantitative data

Answer

It guarantees the optimal decision

Answer

It is a quick and simple process

Question 35

The process of adjusting one's beliefs in light of new evidence is called:

Accepted Answer

Bayesian updating

Answer

Confirmation bias

Answer

Cognitive dissonance

Answer

Availability heuristic

Question 36

Which of the following is an example of a non-compensatory decision-making rule?

Accepted Answer

Conjunctive rule

Answer

Additive rule

Answer

Multiplicative rule

Answer

Lexicographic rule

Question 37

How can people use knowledge of cognitive biases to make better decisions?

Accepted Answer

Use techniques to reduce the effects of cognitive biases and make better decisions.

Answer

Get rid of all cognitive biases to make decisions that are not influenced by personal beliefs.

Answer

Ignore cognitive biases because they don't have much of an impact on decision-making.

Answer

Only trust your gut feelings because logical thinking can be biased.

Question 38

When faced with a complex decision involving multiple criteria, which decision-making model is most suitable? This model uses a matrix to compare the pros and cons of each option.

Accepted Answer

Weighted Multi-Attribute Utility Theory

Answer

Expected Value Theory

Answer

Prospect Theory

Answer

Bounded Rationality

Question 39

The initial stage of the decision-making process, involving identifying a problem and developing potential solutions, is known as:

Accepted Answer

Problem framing

Answer

Implementation

Answer

Outcome evaluation

Answer

Alternative selection

Question 40

A common cognitive bias that can influence decision making, leading individuals to seek information that confirms their existing beliefs, is:

Accepted Answer

Confirmation bias

Answer

Hypothesis testing

Answer

Random sampling

Answer

Meta-analysis

Question 41

The decision-making model that proposes that individuals assign different weights to attributes of alternatives is known as the:

Accepted Answer

Weighted additive model

Answer

Subjective expected utility theory

Answer

Prospect theory

Answer

Conjoint analysis

Question 42

A deterministic constraint on decision making refers to a factor that:

Accepted Answer

Limits available options

Answer

Affects cognitive biases

Answer

Influences preferences

Answer

Generates potential solutions

Question 43

The final stage of the decision-making process, involving putting the chosen course of action into practice and monitoring its progress, is:

Accepted Answer

Implementation

Answer

Alternative selection

Answer

Evaluation

Answer

Problem framing

Question 44

An important trait of effective decision makers is:

Accepted Answer

Adaptability

Answer

Rigidity

Answer

Indecisiveness

Answer

Impulsivity

Question 45

The cognitive bias where individuals overestimate the likelihood of events based on their ease of recall is known as the:

Accepted Answer

Availability heuristic

Answer

Representative heuristic

Answer

Framing effect

Answer

Anchoring bias

Question 46

The process of assessing the outcomes of a decision and making necessary adjustments is:

Accepted Answer

Evaluation

Answer

Implementation

Answer

Alternative selection

Answer

Problem framing

Question 47

Which of the following is NOT a fundamental type of decision-making strategy?

Accepted Answer

Avoidance

Answer

Rational decision-making

Answer

Satisficing

Answer

Intuition

Question 48

Which of the following is a major factor that significantly influences decision-making?

Accepted Answer

Cognitive biases

Answer

Age

Answer

Education level

Question 49

Which of the following is the initial step in the decision-making process?

Accepted Answer

Defining the problem or opportunity

Answer

Implementing a decision

Answer

Evaluating alternative solutions

Answer

Monitoring the results

Question 50

Which of the following is an effective approach to improving decision-making?

Accepted Answer

Seeking diverse perspectives and opinions

Answer

Avoiding thorough information gathering

Answer

Making decisions impulsively

Answer

Relying solely on personal experience

Question 51

What is a fundamental difference between rational decision-making and intuition?

Accepted Answer

Rational decision-making emphasizes logical reasoning, while intuition draws upon subconscious cues and gut feelings.

Answer

Intuition is always more reliable than rational decision-making.

Answer

Rational decision-making is universally superior to intuition.

Question 52

Which of the following accurately describes the concept of satisficing?

Accepted Answer

Accepting a solution that meets a reasonable level of satisfaction without seeking the absolute best option.

Answer

Considering every possible alternative before making a decision.

Answer

Searching exhaustively for the objectively best solution.

Question 53

Which of the following is a primary advantage of structured decision tools, such as decision matrices?

Accepted Answer

They facilitate a systematic and organized comparison of alternative options.

Answer

They guarantee the selection of the optimal decision in every situation.

Answer

They eliminate the need to consider multiple decision criteria.