Global Decision-Making Psychology

What is the term used to describe the cognitive bias where individuals rely heavily on the first piece of information they hear when making decisions?

• Anchoring bias

• Confirmation bias

• Availability heuristic

• Hindsight bias

Which theory in decision-making suggests that people make decisions based on the potential value of losses and gains rather than the final outcome?

• Prospect theory

• Rational choice theory

• Expected utility theory

• Game theory

In a global context, what is the effect called when people from different cultures perceive and decide differently due to cultural conditioning?

• Cultural relativism

• Ethnocentrism

• Cultural cognition

• Cross-cultural negotiation

What psychological barrier can often explain why people in organizations resist adopting new technologies or methods, even when they are shown to be superior?

• Status quo bias

• Loss aversion

• The endowment effect

• The sunk cost fallacy

Which of the following is NOT a common heuristic used in decision-making?

• Representativeness heuristic

• Simulation heuristic

• Deductive reasoning

• Affect heuristic

What is the phenomenon called when groups make decisions that are more extreme than the initial inclination of its members?

• Group polarization

• Social loafing

• Groupthink

• The bystander effect

Which bias describes the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses?

• Confirmation bias

• Cognitive dissonance

• Anchoring bias

• Availability heuristic

In decision-making, what is the term for a reduced ability to make decisions due to an overload of information?

• Analysis paralysis

• Cognitive overload

• Decision fatigue

• Information bias

Which of the following best describes the 'sunk cost fallacy'?

• Ignoring sunk costs and focusing on marginal costs

• Continuing a doomed project due to the significant resources already committed

• Evaluating costs and benefits at each stage of a project

• Reducing further losses by investing more resources

What is the term used to describe the decision-making error where individuals overestimate their ability to predict the outcome of an event?

• Overconfidence bias

• Optimism bias

• Hindsight bias

• Gambler’s fallacy