Judgment and Decision Making: MCQ Test on Cognitive Biases and Heuristics

Challenge your understanding of cognitive biases and heuristics with this MCQ test on judgment and decision-making. Test your knowledge of mental shortcuts and their impact on choices.

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  • 📋 Total Questions: 30
  • ⏳ Time Limit: 30 minutes
  • 📝 Marking Scheme: +1 for each correct answer. No negative marking.
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  • 🔍 Carefully read all questions before submitting your answers.
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Time Left (min): 00:00

1. What is a cognitive bias?

  • A mental shortcut that helps make decisions quickly
  • A systematic error in thinking
  • A strategy for making decisions based on logic
  • A method for analyzing data

2. Which of the following best describes the availability heuristic?

  • Making decisions based on recent or easily recalled information
  • Relying on statistical data to make decisions
  • Making decisions based on expert opinions
  • Using a systematic process to solve problems

3. The anchoring bias occurs when:

  • People rely too heavily on the first piece of information they receive
  • People overestimate the value of rare events
  • People make judgments based on past experiences
  • People tend to seek information that confirms their beliefs

4. Which cognitive bias involves overestimating one's ability to predict future events?

  • Confirmation bias
  • Hindsight bias
  • Optimism bias
  • Availability heuristic

5. The framing effect is a bias where:

  • People make different decisions based on how information is presented
  • People choose the option with the most information
  • People ignore emotional factors in decision-making
  • People make decisions based on long-term consequences

6. What is the affect heuristic?

  • Making decisions based on emotions rather than facts
  • A method of analyzing the pros and cons of a situation
  • Making decisions based on long-term thinking
  • Choosing the option that is statistically most likely to succeed

7. The confirmation bias refers to:

  • Seeking information that contradicts existing beliefs
  • Interpreting information in a way that supports pre-existing beliefs
  • Relying on intuition rather than reasoning
  • Making decisions based on facts rather than emotions

8. What is the sunk cost fallacy?

  • The tendency to escalate commitment to a decision due to previous investments
  • The tendency to make decisions based on future benefits
  • The tendency to avoid making decisions based on past outcomes
  • The tendency to make decisions based on available resources

9. The overconfidence bias occurs when:

  • People overestimate the accuracy of their judgments and decisions
  • People underestimate the risks involved in a decision
  • People base their decisions on past experiences
  • People make decisions based on social influence

10. Which of the following is an example of the availability heuristic?

  • Assuming an event is likely because it is vividly remembered or frequently reported
  • Relying on statistical probabilities to make a decision
  • Using an expert’s opinion to make a decision
  • Considering long-term consequences when making decisions

11. What is the bandwagon effect?

  • The tendency to adopt a belief or behavior because others are doing it
  • The tendency to reject opinions that are too popular
  • The tendency to make decisions based on deep analysis
  • The tendency to make decisions independently of group influence

12. Which of the following biases leads to a person overestimating their ability to predict outcomes?

  • Hindsight bias
  • Optimism bias
  • Anchoring bias
  • Confirmation bias

13. The hindsight bias is best described as:

  • Seeing events as more predictable after they have occurred
  • Relying on prior knowledge for future predictions
  • Making decisions based on limited information
  • Underestimating the influence of external factors on decisions

14. What does the "halo effect" describe in decision-making?

  • The tendency to let a positive trait influence overall judgment
  • The tendency to make judgments based on negative experiences
  • The tendency to ignore external factors when making decisions
  • The tendency to prioritize immediate rewards over long-term benefits

15. What is the loss aversion bias?

  • The tendency to prefer avoiding losses rather than acquiring equivalent gains
  • The tendency to make decisions based on emotional responses
  • The tendency to be overconfident about decision outcomes
  • The tendency to ignore risks and focus only on rewards

16. The hindsight bias makes people believe that:

  • Events were more predictable than they actually were
  • They can predict future outcomes more accurately
  • They make decisions based on factual data
  • They rely only on intuition for decision-making

17. The endowment effect occurs when:

  • People overvalue something simply because they own it
  • People make decisions based on group preferences
  • People focus on immediate rewards instead of long-term outcomes
  • People undervalue their possessions when making decisions

18. The cognitive dissonance theory suggests that:

  • People try to reduce the discomfort of holding conflicting beliefs
  • People make decisions based on their previous experiences
  • People tend to seek information that supports their beliefs
  • People make decisions that align with societal expectations

19. The affective forecasting error occurs when:

  • People predict future emotions incorrectly
  • People make decisions based on current emotions
  • People rely on previous experiences for future predictions
  • People make decisions based on social norms

20. The gambler’s fallacy is the belief that:

  • Past events will influence future independent events
  • Events are more likely to occur based on statistical probabilities
  • People can control the outcome of random events
  • Luck is always predictable

21. Which of the following is an example of the representativeness heuristic?

  • Assuming a person is a librarian because they are quiet and bookish
  • Relying on expert opinions to make decisions
  • Making decisions based on personal experiences
  • Making decisions based on available information

22. Which of the following biases is associated with decisions based on limited knowledge?

  • Overconfidence bias
  • Anchoring bias
  • Confirmation bias
  • Availability heuristic

23. The illusion of control bias occurs when:

  • People believe they have control over events that are actually random
  • People make decisions based on emotional responses
  • People make decisions based on statistical data
  • People overestimate their knowledge of a situation

24. Which bias leads individuals to focus more on information that supports their beliefs?

  • Confirmation bias
  • Representativeness heuristic
  • Overconfidence bias
  • Anchoring bias

25. The contrast effect in decision-making occurs when:

  • People make decisions based on comparisons with extreme alternatives
  • People make decisions based on limited information
  • People ignore negative feedback when making choices
  • People overvalue immediate rewards over long-term gains

26. The illusion of validity is:

  • Believing that a judgment or prediction is more accurate than it actually is
  • Relying on statistical data for predictions
  • Making decisions based on intuitive feelings
  • Making decisions that are statistically more likely to be wrong

27. Which bias leads to a person overestimating their ability to make accurate decisions?

  • Optimism bias
  • Overconfidence bias
  • Anchoring bias
  • Availability heuristic

28. The primacy effect is the tendency to:

  • Remember the first items in a list better than the others
  • Make decisions based on the most recent information
  • Make decisions based on the most emotional experiences
  • Focus on the middle items in a sequence

29. The self-serving bias is the tendency to:

  • Take credit for successes and blame others for failures
  • Make decisions based on external factors
  • Consider long-term consequences when making choices
  • Underestimate the likelihood of failure

30. What is the planning fallacy?

  • The tendency to underestimate the time, costs and risks of future actions
  • The tendency to make decisions quickly based on initial thoughts
  • The tendency to favor immediate rewards over long-term benefits
  • The tendency to overestimate one’s ability to predict future events

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