MCQS:
1: Century 21’s price tags show “compare at” price and the much lower store price. Which bias does this leverage to increase profits?
a) Stereotyping
b) Overconfidence
c) Availability
d) Anchoring
2: What’s the difference between System 1 and System 2 thinking?
a) Heuristics vs. Rules of Thumb
b) Irrational vs. rational
c) Thinking fast vs. slow
d) Individual vs. Group
3: Which bias is represented in this cartoon?
a) Confirmation
b) Political
c) Anchoring
d) Red herring
4: What is one way to reduce the effects of noise in decision-making?
a) Make decisions in a group
b) Use a computer algorithm
c) Use the default heuristic
d) Use system 2, not system 1
5:Why can groupthink cause bad decisions
a) It limits creativity and constructive criticism
b) It creates consensus too slowly
c) It gives authority less power
d) It is a form of mind-control
6: Your company is considering a choice between hiring 10 workers or purchasing 3 robots. The workers and robots will then be able to be trained for different purposes. It’s uncertain how productive the workers and robots will be because that will depend on future market conditions. This choice can be best analyzed with:
a) Decision Matrix
b) Decision Tree
c) Pro/Con List
d) Intuition
7: The Russian prime minister, in response to accusation of meddling in European elections said, “Suspecting someone of an event that has not yet happened is a bunch of paranoid nonsense.” What kind of fallacy is this?
a) Slippery slope
b) Red herring
c) Ad hominem
d) Straw man
8: What is economics?
a) Study of production, distribution and consumption
b) Study of how to save money
c) Study of investing and borrowing
d) Study of the financial decisions of consumers and firms
9: Which is not one step in using the Ben Franklin method to make a decision?
a) Consider the interests of stakeholders.
b) Cross out pros that are equally important as certain cons.
c) Create a list of pros and cons.
d) Estimate the probability of outcomes.
10: What is correlation?
a) A statistical measure of risk.
b) A philosophical concept about how the world works.
c) The slope of the line created by a regression.
d) A statistical measure of the tendency for two values or variables to change together, in either the same or opposite way.
