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 Number of Questions: 30
- ⏳ Time Allotted: 30 Minutes
- 📝 Marking Scheme: Each question carries 1 mark. There is no negative marking.
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- 🔍 Read each question carefully before selecting your answer.
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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