Question 1

Meg has exceeded her budget by at least $200 every month for the last three months. After recognizing that this is a problem, she decides to use the rational decision-making model to decide what to do. What should be the next step she should take, if she follows this model?

Accepted Answer

A)  determine what criteria she needs to take into account when making her decision 
B)  choose a method to cut her expenses 
C)  implement some other method of budgeting 
D)  come up with different ways that would either reduce her expenses or increase her income 
E)  evaluate different ways that she could use to either reduce her expenses or increase her income

Question 2

You are in your senior year and, unfortunately, your GPS is awful, you hate going to class, and your internship makes you want to purposely catch food poisoning just so you can miss work. During a visit with your academic advisor, they suggest you might want to change your major. Why do you not change your major?

Accepted Answer

The answer of You are in your senior year and,...

Question 3

David is of the opinion that people who drive SUVs are dangerous drivers. He often thinks that people driving SUVs are driving rashly, even when other observers can see nothing wrong with the behavior of the SUV drivers. What factor is affecting his perception in this case?

Accepted Answer

A)  his interests 
B)  his personality 
C)  his expectations 
D)  his motives 
E)  his attitude

Question 4

A common tendency related to the overconfidence bias is that as managers and employees become more knowledgeable about an issue, they become more likely to display overconfidence.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a component of the three-component model that is considered as the foundation for all creative work?

Accepted Answer

A)  expertise 
B)  creative thinking skills 
C)  intrinsic task motivation 
D)  intuition 
E)  analytical skills

Question 6

Which of the following is an example of a shortcut used in judging others?

Accepted Answer

A)  hindsight bias 
B)  confirmation bias 
C)  stereotyping 
D)  randomness error 
E)  availability bias

Question 7

What is escalation of commitment?

Accepted Answer

The answer of What is escalation of commitment?...

Question 8

________ is a highly complex and highly developed form of reasoning that is based on years of experience and learning.

Accepted Answer

A)  Contrast effect 
B)  Halo effect 
C)  Intuition 
D)  Selective perception 
E)  Emotional intelligence

Question 9

Which of the following statements is not an example of stereotyping?

Accepted Answer

A)  There is no need to offer child care to him; men aren't interested in child care. 
B)  Don't hire an older worker; they can't learn new skills. 
C)  She was good at her last job, so she will be good at this one. 
D)  She won't relocate for a promotion, since women don't relocate. 
E)  The new hire will be emotionally insensitive, since he is a man.

Question 10

Your boss never gives you the benefit of the doubt. When you arrived late from lunch, he assumed that you had simply taken too much time. He never considered that the elevators were not working that day and the fact that you had to walk up 10 flights of stairs. Your boss is guilty of ________.

Accepted Answer

A)  a self-serving bias 
B)  selective perception 
C)  the fundamental attribution error 
D)  inconsistency 
E)  stereotyping

Question 11

Arian dresses very nicely, has great hair, and a winning smile. According to the Halo Effect, which of the following are we most likely to ascribe to Arian?

Accepted Answer

A)  he is a good student 
B)  he gets a lot of dates 
C)  he is a nice person 
D)  he is highly narcissistic 
E)  he has low self-esteem

Question 12

It was Marisol's first day at work. At first she was very nervous, but when she was introduced to her cubicle neighbor, Hanna, she was reassured by Hanna's soothing smile. Marisol thought that a person with such a beautiful smile could not be bad, and that she would enjoy having her in such close proximity. Which of the following concepts best describes this example?

Accepted Answer

A)  contrast effect 
B)  fundamental attribution error 
C)  halo effect 
D)  selective perception 
E)  self-serving bias

Question 13

Which of the following is a component of creativity that encompasses certain personality characteristics of an individual such as the ability to use analogies?

Accepted Answer

A)  expertise 
B)  creative thinking skills 
C)  intrinsic task motivation 
D)  intuition 
E)  selective perception

Question 14

You are part of a group, making a decision about whether it is appropriate to discontinue research on a new drug. This new drug would save lives, but it is uncertain whether you can develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a small fortune on this drug. You have gathered so much information in preparation to making the decision that you are unable to sort the good information from the superfluous data. You just feel that this project has merit. What form of decision making are you using if you decide to continue the project because you feel that the project has merit?

Accepted Answer

A)  optimization 
B)  intuitive 
C)  rational 
D)  satisficing 
E)  bounded rationality

Question 15

Which of the following statements is true regarding the rational decision-making model?

Accepted Answer

A)  The rational decision-making model takes into consideration the limited information-processing capability of individuals. 
B)  Rational decision-making models involve constructing simplified models that extract the essential features from problems without capturing all their complexity. 
C)  The rational decision-making model involves satisficing; seek solutions that are satisfactory and sufficient. 
D)  The rational decision-making model assumes that an individual is able to identify all the relevant options in an unbiased manner. 
E)  The rational decision-making process is an unconscious one created from distilled experience.

Question 16

It is possible to reduce the number of lies that people tell within an organization without using punishments such as terminations.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following terms best describes the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others?

Accepted Answer

A)  fundamental attribution error 
B)  halo effect 
C)  selective perception 
D)  overconfidence 
E)  randomness error

Question 18

Martha submitted a formal complaint to OSHA about unsafe work conditions in her company's warehouse. Martha is a ________.

Accepted Answer

A)  utilitarian thinker 
B)  judge 
C)  creative thinker 
D)  whistle-blower 
E)  humanitarian

Question 19

Contrast the fundamental attribution error and the self-serving bias.

Accepted Answer

The answer of Contrast the fundamental attribution error and the...

Question 20

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

Accepted Answer

A)  ERG 
B)  Hierarchy of needs 
C)  Acquired needs 
D)  Attribution 
E)  Two factor

Exam 6: Perception and Individual Decision Making