Question 1

Our perception of reality can be substantially different from objective reality.

Accepted Answer

A) True 
 B)False  True

Question 2

The relationship of a target to its background influences our perception of that target.

Accepted Answer

A) True 
 B)False  True

Question 3

For many people, a 50-50 flip of a coin for $100 might not be worth as much as a sure promise of $50, even though the gamble is mathematically worth twice as much as the sure thing. This is an example of ________.

Accepted Answer

A)   selective perception
B)   self-serving bias
C)   risk aversion
D)   availability bias
E)   confirmation bias C

Question 4

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)   bandwagon effect
C)   selective perception
D)   emotional dissonance
E)   framing effect

Question 5

A focus on utilitarianism promotes the rights of minorities.

Accepted Answer

A) True 
 B)False

Question 6

The group later learns that the drug will be very expensive to manufacture, but the group decides to continue the project so that all the resources already spent on it will not have been wasted. This is an example of ________.

Accepted Answer

A)   availability bias
B)   hindsight bias
C)   escalation of commitment
D)   satisficing
E)   fundamental attribution error

Question 7

What is escalation of commitment?

Accepted Answer

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

Question 8

With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations?

Accepted Answer

A)   continuity
B)   integrity
C)   stability
D)   flexibility
E)   distinctiveness

Question 9

Which decision criterion will you teach if you want to teach the decision criterion that currently dominates business decision-making?

Accepted Answer

A)   utilitarianism
B)   justice
C)   rights
D)   historical precedent
E)   selective perception

Question 10

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 11

We tend to accept at face value information that is consistent with our preconceived views, while we are critical and skeptical of information that challenges these views. This represents the ________ bias.

Accepted Answer

A)   distinction
B)   impact
C)   hindsight
D)   confirmation
E)   self-serving

Question 12

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 13

Your boss never gives you the benefit of 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 14

What is the first step in the rational decision-making model?

Accepted Answer

A)   developing alternatives
B)   defining the problem
C)   identifying the decision criteria
D)   weighing the decision criteria
E)   collecting relevant data

Question 15

Attribution theory uses three factors to determine if a person's behavior is caused internally or externally. One of these three factors is consensus. It indicates if ________.

Accepted Answer

A)   the person has high propensity to defer to others
B)   the individual displays different behaviors in different situations
C)   everyone who faces a similar situation responds in the same way
D)   the individual responds the same way over time
E)   the person scores high on conscientiousness

Question 16

Which of the following terms best represents the tendency of people to base their judgments on information that they can easily obtain?

Accepted Answer

A)   representative bias
B)   availability bias
C)   confirmation bias
D)   anchoring bias
E)   escalation of commitment

Question 17

When we judge someone on the basis of our perception of the group to which he/she belongs, it is called ________.

Accepted Answer

A)   confirmation bias
B)   stereotyping
C)   framing effect
D)   distinction bias
E)   bandwagon effect

Question 18

Which of the following statements is true regarding a contrast effect?

Accepted Answer

A)   Our tendency to attribute our success to internal factors and blame our failure on external factors is called the contrast effect.
B)   The contrast effect states that we tend to judge someone on the basis of our perception of the group to which he or she belongs.
C)   A person appears more appealing than normal when compared with a person of less appeal due to the contrast effect.
D)   If we think that women won't relocate for a promotion, we are using a shortcut to judge all women and it is called the contrast effect.
E)   The contrast effect indicates a tendency to fixate on initial information and fail to adequately adjust for subsequent information.

Question 19

Whenever Jane is successful she takes full credit for her success, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of the ________.

Accepted Answer

A)   fundamental attribution error
B)   attribution bias
C)   confirmation bias
D)   distinction bias
E)   self-serving bias

Question 20

Rational decision-making is an unconscious process created from distilled experience.

Accepted Answer

A) True 
 B)False

Exam 5: Perception and Individual Decision Making

Our perception of reality can be substantially different from objective reality.

The relationship of a target to its background influences our perception of that target.

For many people, a 50-50 flip of a coin for $100 might not be worth as much as a sure promise of $50, even though the gamble is mathematically worth twice as much as the sure thing. This is an example of ________.

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?

A focus on utilitarianism promotes the rights of minorities.

The group later learns that the drug will be very expensive to manufacture, but the group decides to continue the project so that all the resources already spent on it will not have been wasted. This is an example of ________.

What is escalation of commitment?

With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations?

Which decision criterion will you teach if you want to teach the decision criterion that currently dominates business decision-making?

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.

We tend to accept at face value information that is consistent with our preconceived views, while we are critical and skeptical of information that challenges these views. This represents the ________ bias.

What form of decision making are you using if you decide to continue the project because you feel that the project has merit?

Your boss never gives you the benefit of 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 ________.

What is the first step in the rational decision-making model?

Attribution theory uses three factors to determine if a person's behavior is caused internally or externally. One of these three factors is consensus. It indicates if ________.

Which of the following terms best represents the tendency of people to base their judgments on information that they can easily obtain?

When we judge someone on the basis of our perception of the group to which he/she belongs, it is called ________.

Which of the following statements is true regarding a contrast effect?

Whenever Jane is successful she takes full credit for her success, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of the ________.

Rational decision-making is an unconscious process created from distilled experience.