Question 1

Which of the following is true of intuitive decision making?
A) It is a slow process of decision making.
B) It is devoid of emotions.
C) It is the most rational way of making decision.
D) It occurs within conscious thought.
E) It involves making decisions based on distilled experience.

Accepted Answer

Intuitive decision making involves making decisions based on distilled experience, often without conscious thought. It may be quick and emotional, but it is not necessarily rational.

Question 2

The three-component model of creativity proposes that individual creativity essentially requires expertise, creative thinking skills, and ________.
A) external locus of control
B) intrinsic task motivation
C) emotional intelligence
D) positivity offset
E) selective perception

Accepted Answer

The three-component model of creativity proposes that individual creativity requires expertise, creative thinking skills, and intrinsic task motivation. External locus of control, emotional intelligence, positivity offset, and selective perception are not included in the model.

Question 3

According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an internally caused behavior.

Accepted Answer

If a behavior scores high on consensus and distinctiveness, it is considered as an externally caused behavior according to the attribution theory.

Question 4

Attribution theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.

Accepted Answer

Attribution theory is the study of how we make inferences about the causes of behavior and events, and how those inferences influence our attitudes and behavior towards others. It explains how we judge people based on the meaning we attach to their behavior and the context in which it occurs.

Question 5

Which of the following types of biases is most likely to play a significant role during a negotiation?
A) impact bias
B) normalcy bias
C) distinction bias
D) anchoring bias
E) status quo bias

Accepted Answer

Anchoring bias occurs when negotiators latch onto the first piece of information presented during a negotiation and use it as a reference point for all subsequent decisions. This can lead to an overvaluation or undervaluation of the item in question and can significantly impact the outcome of the negotiation.

Question 6

An individual's perception of reality can be substantially different from objective reality.

Accepted Answer

Perception is influenced by various external and internal factors such as personal experiences, cultural background, emotions, and cognitive biases. Therefore, an individual's perception of reality can be different from objective reality.

Question 7

People's behavior is based on their perception of what reality is, not on reality itself.

Accepted Answer

People's behavior is influenced by their interpretation and understanding of the world around them rather than objective reality itself. This is because individuals have different experiences, beliefs, and biases that shape their perceptions and ultimately influence their behavior.

Question 8

Phyllis Stintson needs to decide whether to start a campaign against deforestation in Indonesia. Though her research team has provided substantial information on the high feasibility of the project, Stintson does not go ahead with the project. Stintson's decision is most likely influenced by which of the following if she made the decision by drawing unconscious references from several different experiences in the past?
A) optimization
B) intuition
C) fundamental attribution error
D) framing effect
E) anchoring bias

Accepted Answer

If Stintson is making her decision by drawing upon unconscious references from past experiences, then her decision-making process is likely based on intuition rather than rational analysis or the influence of biases such as the framing effect or anchoring bias. While optimization is a valid decision-making technique, there is no indication that Stintson is using it in this scenario. The fundamental attribution error is a bias that affects how people interpret the behavior of others, which is not relevant to Stintson's decision.

Question 9

The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome is known as a(n) ________ bias.
A) self-serving
B) confirmation
C) impact
D) hindsight
E) anchoring

Accepted Answer

This bias is known as the hindsight bias, which involves the belief that one would have predicted an event's outcome after the fact. It is also known as the "I-knew-it-all-along" bias.

Question 10

________ refers to staying with a decision even when there is clear evidence it's wrong.
A) Escalation of commitment
B) Fundamental attribution error
C) Randomness error
D) Risk aversion
E) Availability bias

Accepted Answer

Escalation of commitment is the tendency to continue investing in a decision or course of action even when there is clear evidence that it's not working, often due to the fear of admitting failure or the sunk costs already involved.

Question 11

According to the concept of ________, decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number.
A) utilitarianism
B) selective perception
C) self-fulfilling prophecy
D) halo effect
E) contrast effect

Accepted Answer

The concept described is clearly that of utilitarianism, which prioritizes the outcome of decisions over all other factors.

Question 12

The perception of a target is unaffected by the perceiver's personality or past experiences.

Accepted Answer

The perception of a target can be influenced by the perceiver's personality or past experiences. People may interpret others' behavior differently based on their own biases, attitudes, and previous interactions with them. Therefore, perception is not solely determined by the target itself, but also by the perceiver's internal factors.

Question 13

Which of the following is a component of the three-component model of creativity?
A) expertise
B) logical thinking skills
C) extrinsic task motivation
D) intuition
E) analytical skills

Accepted Answer

Expertise is a component of the three-component model of creativity, which also includes creative thinking skills and intrinsic task motivation.

Question 14

Johanna Murray, a climate campaigner at The National Footprint Foundation, is known in her organization to be a campaigner of caliber and high performance. She has strong networks with the ministry of environment and allies with several environmental organizations in the country. Over the years, she has gained substantial knowledge on the issue of climate change. However, recently when she was asked by her manager to prepare a consolidated report on a conference she attended on climate change, it reflected major loopholes and limited information from the conference. Which of the following, if true, substantiates that Johanna had an anchoring bias?
A) Johanna was moved by the arguments put forth by the first speaker.
B) Johanna participated actively in the interactive session conducted at the end.
C) The speakers at the conference consisted of renowned environmental scientists and activists.
D) Johanna has attended several conferences where the panel consisted of eminent scientists.
E) Johanna was shocked by the startling facts shown during the concluding session.

Accepted Answer

Anchoring bias occurs when an individual relies too heavily on an initial piece of information (the "anchor") when making decisions. If Johanna was moved by the arguments put forth by the first speaker, it suggests she may have given undue weight to these initial arguments, potentially neglecting or underrepresenting subsequent information in her report.

Question 15

The ________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.
A) hindsight
B) overconfidence
C) anchoring
D) availability
E) self-serving

Accepted Answer

Anchoring bias refers to the tendency to rely too heavily on the first piece of information encountered (the "anchor") when making decisions or judgments. This can lead to errors in judgment if subsequent information is not adequately taken into account.

Question 16

Jeanne Edwards works as a campaign manager at Rainforest Alliance Trust, a forest protection organization in Indonesia. She is currently working on the Palm Oil Campaign which aims at establishing stringent laws against companies which aggravate deforestation to extract palm oil for commercial use. Her role is to establish allies with other forest protection organizations and companies which use eco-friendly products that set good examples for other companies to follow. Jeanne allied with Griffin and Powell, a large multinational company, which, unknown to Jeanne, also has strong ties with local logging groups in Jakarta. Which of the following, if true, would strengthen the argument that Jeanne had an availability bias while establishing an ally with the company?
A) Griffin and Powell ensures that all their CSR initiatives on forests are regularly and substantially publicized.
B) Jeanne has adequate experience in leading such campaigns.
C) Jeanne is well acquainted with various research techniques.
D) Jeanne has access to environmental records maintained by the Information Ministry.
E) Rainforest Alliance Trust has strong networks with local environmental research organizations.

Accepted Answer

The fact that Griffin and Powell's CSR initiatives on forests are regularly and substantially publicized may have influenced Jeanne's decision to ally with them, indicating an availability bias. This information suggests that Jeanne may have relied on easily accessible information rather than conducting a thorough investigation of the company's practices. Additionally, while the other options provide information about Jeanne's qualifications and resources, they do not directly relate to her decision-making process in establishing an ally.

Question 17

Individuals who report unethical practices by their employer to outsiders are known as ________.
A) change agents
B) boundary spanners
C) early adopters
D) whistle-blowers
E) free riders

Accepted Answer

Individuals who report unethical practices by their employer to outsiders are referred to as whistle-blowers, as they "blow the whistle" on the wrongdoings. A change agent is someone who brings about change within an organization, boundary spanners are employees who interact with people outside of the organization, early adopters are people who are quick to adopt new ideas or technologies, and free riders are individuals who take advantage of the contributions of others without contributing themselves.

Question 18

A manager doing performance appraisals gives more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier. This shows that the manager's perception is affected by a(n) ________ bias.
A) self-serving bias
B) availability
C) impact
D) distinction
E) hindsight

Accepted Answer

The bias being exhibited is the availability bias, where the manager is giving more weight to recent events because they are fresher in their memory and more easily accessible.

Question 19

The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments is known as a(n) ________ bias.
A) distinction
B) omission
C) impact
D) confirmation
E) anchoring

Accepted Answer

This bias is known as confirmation bias. It refers to the tendency for people to selectively seek out information that confirms their preexisting beliefs and to ignore or discount information that contradicts their beliefs.

Question 20

________ bias refers to the tendency for people to base their judgments on information that is easily accessible.
A) Anchoring
B) Availability
C) Overconfidence
D) Confirmation
E) Hindsight

Accepted Answer

Availability bias refers to the tendency for people to base their judgment on information that is easily accessible. This means if someone is readily able to recall certain information, they may rely on that information more heavily when making a decision or forming an opinion. For example, if someone has recently seen news reports about shark attacks, they may overestimate the likelihood of a shark attack happening to them.

Quiz 6: Perception and Individual Decision Making

Which of the following is true of intuitive decision making?

The three-component model of creativity proposes that individual creativity essentially requires expertise, creative thinking skills, and ________.

According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an internally caused behavior.

Attribution theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.

Which of the following types of biases is most likely to play a significant role during a negotiation?

An individual's perception of reality can be substantially different from objective reality.

People's behavior is based on their perception of what reality is, not on reality itself.

The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome is known as a(n) ________ bias.

________ refers to staying with a decision even when there is clear evidence it's wrong.

According to the concept of ________, decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number.

The perception of a target is unaffected by the perceiver's personality or past experiences.

Which of the following is a component of the three-component model of creativity?

The ________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.

Individuals who report unethical practices by their employer to outsiders are known as ________.

A manager doing performance appraisals gives more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier. This shows that the manager's perception is affected by a(n) ________ bias.

The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments is known as a(n) ________ bias.

________ bias refers to the tendency for people to base their judgments on information that is easily accessible.