Quiz on Heuristics and Decision Making

What are heuristics?

• Detailed logical reasoning processes

• Statistical models for predictions

• Complex algorithms for analysis

• Mental shortcuts for decision-making

Who is a pioneer in psychology and behavioral economics mentioned in the text?

• Herbert Simon

• Gerd Gigerenzer

• Daniel Kahneman

• Blaise Pascal

What does the term 'satisficing' refer to?

• Choosing the best option available

• Maximizing all possible outcomes

• Ignoring all available information

• Settling for a good enough option

Which system is described as fast and error-prone?

• Heuristics

• Cognitive Biases

• System 2

• System 1

What is the main purpose of nudging?

• To influence choices without coercion

• To eliminate all options

• To force decisions through regulations

• To provide financial incentives

What is the recognition heuristic?

• Choosing based on familiarity

• Selecting the most expensive option

• Using complex statistical analysis

• Ignoring all previous knowledge

What does 'bounded rationality' describe?

• Limitations in human decision-making

• Perfect decision-making capabilities

• The ability to predict future outcomes

• The use of complex algorithms

Which of the following is NOT a problem addressed by heuristics?

• Memory retention for future use

• Excessive time for decision-making

• Lack of meaning

• Information overload

What is the '1/N rule' in decision-making?

• A strategy for equal allocation

• A heuristic for maximizing profits

• A method for complex analysis

• A rule for ignoring all data

Which of the following is an example of a cognitive bias?

• Loss aversion

• Satisficing

• Heuristic simplification

• Fast decision-making