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Decision-Making Biases and Heuristics

Description: **Decision-Making Biases and Heuristics Quiz:** Test your understanding of cognitive biases that influence decision-making.
Number of Questions: 15
Created by:
Tags: decision-making cognitive biases heuristics behavioral economics
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Which cognitive bias leads individuals to place more importance on information that is presented first?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Anchoring Bias


Correct Option: D
Explanation:

Anchoring Bias refers to the tendency to rely heavily on the first piece of information encountered when making subsequent judgments.

The tendency to seek information that confirms existing beliefs and disregard information that contradicts them is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Hindsight Bias


Correct Option: A
Explanation:

Confirmation Bias is the tendency to seek and interpret information in a way that supports one's existing beliefs.

Which heuristic involves making judgments based on the ease with which information comes to mind?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Representativeness Heuristic


Correct Option: C
Explanation:

Availability Heuristic refers to the tendency to judge the likelihood of an event based on how easily examples of that event come to mind.

The tendency to judge the likelihood of an event based on its similarity to a prototype or stereotype is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Representativeness Heuristic


Correct Option: D
Explanation:

Representativeness Heuristic is the tendency to judge the likelihood of an event based on how similar it is to a prototype or stereotype.

Which bias leads individuals to believe that they are less likely to experience negative events than others?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Optimism Bias


Correct Option: D
Explanation:

Optimism Bias refers to the tendency to believe that one is less likely to experience negative events than others.

The tendency to make decisions based on emotions rather than rational analysis is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Affect Heuristic

  4. Hindsight Bias


Correct Option: C
Explanation:

Affect Heuristic refers to the tendency to make decisions based on emotions rather than rational analysis.

Which bias leads individuals to overestimate the likelihood of rare events that receive a lot of media attention?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Illusion of Control Bias


Correct Option: C
Explanation:

Availability Heuristic can lead individuals to overestimate the likelihood of rare events that receive a lot of media attention.

The tendency to believe that one has more control over events than one actually does is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Illusion of Control Bias


Correct Option: D
Explanation:

Illusion of Control Bias refers to the tendency to believe that one has more control over events than one actually does.

Which bias leads individuals to believe that they are better than average at various tasks?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Self-Serving Bias


Correct Option: D
Explanation:

Self-Serving Bias refers to the tendency to attribute positive outcomes to internal factors and negative outcomes to external factors.

The tendency to remember information that is consistent with one's beliefs and forget information that contradicts them is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Hindsight Bias


Correct Option: A
Explanation:

Confirmation Bias can lead individuals to remember information that is consistent with their beliefs and forget information that contradicts them.

Which bias leads individuals to believe that they could have predicted an outcome after it has already occurred?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Hindsight Bias


Correct Option: D
Explanation:

Hindsight Bias refers to the tendency to believe that one could have predicted an outcome after it has already occurred.

The tendency to make decisions based on the way information is presented, rather than the actual content of the information, is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Representativeness Heuristic


Correct Option: B
Explanation:

Framing Effect refers to the tendency to make decisions based on the way information is presented, rather than the actual content of the information.

Which bias leads individuals to believe that something is more likely to happen simply because it has happened before?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Illusion of Control Bias


Correct Option: D
Explanation:

Illusion of Control Bias can lead individuals to believe that something is more likely to happen simply because it has happened before.

The tendency to make decisions based on the first piece of information encountered, rather than considering all available information, is known as:

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Anchoring Bias


Correct Option: D
Explanation:

Anchoring Bias refers to the tendency to make decisions based on the first piece of information encountered, rather than considering all available information.

Which bias leads individuals to believe that they are less likely to experience negative events than others, even when the evidence suggests otherwise?

  1. Confirmation Bias

  2. Framing Effect

  3. Availability Heuristic

  4. Optimism Bias


Correct Option: D
Explanation:

Optimism Bias refers to the tendency to believe that one is less likely to experience negative events than others, even when the evidence suggests otherwise.

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