Judgment and Decision Making: MCQ Test on Cognitive Biases and Heuristics
Questions: 30
Questions
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1. What is a cognitive bias?
- a) A mental shortcut that helps make decisions quickly
- b) A systematic error in thinking
- c) A strategy for making decisions based on logic
- d) A method for analyzing data
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2. Which of the following best describes the availability heuristic?
- a) Making decisions based on recent or easily recalled information
- b) Relying on statistical data to make decisions
- c) Making decisions based on expert opinions
- d) Using a systematic process to solve problems
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3. The anchoring bias occurs when:
- a) People rely too heavily on the first piece of information they receive
- b) People overestimate the value of rare events
- c) People make judgments based on past experiences
- d) People tend to seek information that confirms their beliefs
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4. Which cognitive bias involves overestimating one's ability to predict future events?
- a) Confirmation bias
- b) Hindsight bias
- c) Optimism bias
- d) Availability heuristic
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5. The framing effect is a bias where:
- a) People make different decisions based on how information is presented
- b) People choose the option with the most information
- c) People ignore emotional factors in decision-making
- d) People make decisions based on long-term consequences
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6. What is the affect heuristic?
- a) Making decisions based on emotions rather than facts
- b) A method of analyzing the pros and cons of a situation
- c) Making decisions based on long-term thinking
- d) Choosing the option that is statistically most likely to succeed
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7. The confirmation bias refers to:
- a) Seeking information that contradicts existing beliefs
- b) Interpreting information in a way that supports pre-existing beliefs
- c) Relying on intuition rather than reasoning
- d) Making decisions based on facts rather than emotions
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8. What is the sunk cost fallacy?
- a) The tendency to escalate commitment to a decision due to previous investments
- b) The tendency to make decisions based on future benefits
- c) The tendency to avoid making decisions based on past outcomes
- d) The tendency to make decisions based on available resources
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9. The overconfidence bias occurs when:
- a) People overestimate the accuracy of their judgments and decisions
- b) People underestimate the risks involved in a decision
- c) People base their decisions on past experiences
- d) People make decisions based on social influence
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10. Which of the following is an example of the availability heuristic?
- a) Assuming an event is likely because it is vividly remembered or frequently reported
- b) Relying on statistical probabilities to make a decision
- c) Using an expert’s opinion to make a decision
- d) Considering long-term consequences when making decisions
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11. What is the bandwagon effect?
- a) The tendency to adopt a belief or behavior because others are doing it
- b) The tendency to reject opinions that are too popular
- c) The tendency to make decisions based on deep analysis
- d) The tendency to make decisions independently of group influence
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12. Which of the following biases leads to a person overestimating their ability to predict outcomes?
- a) Hindsight bias
- b) Optimism bias
- c) Anchoring bias
- d) Confirmation bias
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13. The hindsight bias is best described as:
- a) Seeing events as more predictable after they have occurred
- b) Relying on prior knowledge for future predictions
- c) Making decisions based on limited information
- d) Underestimating the influence of external factors on decisions
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14. What does the "halo effect" describe in decision-making?
- a) The tendency to let a positive trait influence overall judgment
- b) The tendency to make judgments based on negative experiences
- c) The tendency to ignore external factors when making decisions
- d) The tendency to prioritize immediate rewards over long-term benefits
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15. What is the loss aversion bias?
- a) The tendency to prefer avoiding losses rather than acquiring equivalent gains
- b) The tendency to make decisions based on emotional responses
- c) The tendency to be overconfident about decision outcomes
- d) The tendency to ignore risks and focus only on rewards
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16. The hindsight bias makes people believe that:
- a) Events were more predictable than they actually were
- b) They can predict future outcomes more accurately
- c) They make decisions based on factual data
- d) They rely only on intuition for decision-making
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17. The endowment effect occurs when:
- a) People overvalue something simply because they own it
- b) People make decisions based on group preferences
- c) People focus on immediate rewards instead of long-term outcomes
- d) People undervalue their possessions when making decisions
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18. The cognitive dissonance theory suggests that:
- a) People try to reduce the discomfort of holding conflicting beliefs
- b) People make decisions based on their previous experiences
- c) People tend to seek information that supports their beliefs
- d) People make decisions that align with societal expectations
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19. The affective forecasting error occurs when:
- a) People predict future emotions incorrectly
- b) People make decisions based on current emotions
- c) People rely on previous experiences for future predictions
- d) People make decisions based on social norms
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20. The gambler’s fallacy is the belief that:
- a) Past events will influence future independent events
- b) Events are more likely to occur based on statistical probabilities
- c) People can control the outcome of random events
- d) Luck is always predictable
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21. Which of the following is an example of the representativeness heuristic?
- a) Assuming a person is a librarian because they are quiet and bookish
- b) Relying on expert opinions to make decisions
- c) Making decisions based on personal experiences
- d) Making decisions based on available information
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22. Which of the following biases is associated with decisions based on limited knowledge?
- a) Overconfidence bias
- b) Anchoring bias
- c) Confirmation bias
- d) Availability heuristic
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23. The illusion of control bias occurs when:
- a) People believe they have control over events that are actually random
- b) People make decisions based on emotional responses
- c) People make decisions based on statistical data
- d) People overestimate their knowledge of a situation
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24. Which bias leads individuals to focus more on information that supports their beliefs?
- a) Confirmation bias
- b) Representativeness heuristic
- c) Overconfidence bias
- d) Anchoring bias
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25. The contrast effect in decision-making occurs when:
- a) People make decisions based on comparisons with extreme alternatives
- b) People make decisions based on limited information
- c) People ignore negative feedback when making choices
- d) People overvalue immediate rewards over long-term gains
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26. The illusion of validity is:
- a) Believing that a judgment or prediction is more accurate than it actually is
- b) Relying on statistical data for predictions
- c) Making decisions based on intuitive feelings
- d) Making decisions that are statistically more likely to be wrong
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27. Which bias leads to a person overestimating their ability to make accurate decisions?
- a) Optimism bias
- b) Overconfidence bias
- c) Anchoring bias
- d) Availability heuristic
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28. The primacy effect is the tendency to:
- a) Remember the first items in a list better than the others
- b) Make decisions based on the most recent information
- c) Make decisions based on the most emotional experiences
- d) Focus on the middle items in a sequence
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29. The self-serving bias is the tendency to:
- a) Take credit for successes and blame others for failures
- b) Make decisions based on external factors
- c) Consider long-term consequences when making choices
- d) Underestimate the likelihood of failure
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30. What is the planning fallacy?
- a) The tendency to underestimate the time, costs and risks of future actions
- b) The tendency to make decisions quickly based on initial thoughts
- c) The tendency to favor immediate rewards over long-term benefits
- d) The tendency to overestimate one’s ability to predict future events
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