Cognitive Biases Quiz

According to the document, what is the 'Framing effect'?. A cognitive bias where people's choices differ based on how the same information is presented. A logical process of decision-making based on facts. A method to improve memory. A way to predict future outcomes.

What is the key factor in the experiment involving candidates A and B?. Intelligence and morality are equally important. Intelligence is more important than morality. Morality is more important than intelligence. Both are irrelevant.

In the experiment with candidates A and B, how did framing affect the choices in the tables?. The best option was always chosen. Choices changed depending on the presentation of information in the tables. Candidate B was always chosen. The choices remained consistent across both tables.

In the lottery ticket example, what is the scenario and its effect on the decision-making process?. Decisions are based on the cost of a lottery ticket that did not win, and this influences behavior. The lottery ticket is irrelevant to the decision making. Decisions always favor risk. The outcome is based on the expectation of winning.

What is the key point made in the gas station example, about discounts and surcharges?. People are more willing to forgo a discount than pay a surcharge. Discounts and surcharges are perceived the same way. Surcharges are preferred over discounts. Neither is relevant.

How does framing affect decisions in the medical example (surgery vs. radiation)?. Framing has no impact on the choices of physicians. Surgery is always favored regardless of how the information is presented. Choices changed significantly based on whether survival or mortality rates were presented. All physicians made the same choice.

In the tax code experiment, what proposition was being tested related to child exemptions?. Whether child exemptions should be larger for the rich than the poor. Whether child exemptions should be smaller for the rich than the poor. Whether child exemptions are necessary. How child exemptions affect tax collection.

In the experiment about the tax code, what was the general result regarding child exemptions?. The idea of favoring the rich was completely unacceptable. There was no consensus. The rich should pay more. The poor should pay more.

How did framing impact the responses in the example comparing families in the childless case?. People favored the rich. People favored the poor. There was no discernible pattern. It had no effect.

What causes the framing effect in organ donation rates?. The format of the critical question. Individual's age. Health status. Political affiliation.

How does mental accounting affect financial decisions, according to the document?. It leads to logical and rational financial decisions. It leads to treating money in different ways depending on its source and use. It promotes consistent spending habits. It eliminates emotional biases in financial decisions.

In the movie ticket example, what is the main outcome of losing the ticket?. People would still purchase a ticket, because the other ticket was lost. People may be less willing to purchase a ticket because of the sunk cost. People were more willing to purchase the ticket because they had a general spending budget. People were unaffected.

In the movie ticket example, how does the mental accounting explain different responses in two scenarios?. Lost money attributed to the same 'movie budget' makes buying another ticket seem expensive. Lost money attributed to the general spending budget makes buying a ticket seem normal. Mental accounting doesn't affect decision making. The scenarios are identical in the perspective of mental accounting.

What is the central concept demonstrated by the Thailand vacation example?. Framing effect. Mental accounting. Money illusion effect. Status quo effect.

In the trips to Italy and Spain examples, the primary cognitive bias being illustrated is... Framing effect. Mental accounting. Money illusion effect. Loss aversion.

What is the basis for the statement, "People don't see the difference between..."?. Framing effect. Mental accounting. Money illusion effect. The status quo effect.

According to the document, what is the 'status quo effect'?. People's tendency to prefer to do nothing or stick to a decision made earlier. The preference for a new and different situation. The tendency to abandon an old project. The tendency to make changes to improve outcomes.

Which of the following is NOT listed as a potential cause of the status-quo effect?. Transition costs. Uncertainty in a decision situation. Cognitive biases such as loss aversion. The absence of choices.

What does the 'halo effect' describe?. Transferring the first impression to other features of that person. The preference for things to remain the same. The act of mental categorization. When an action is taken by others.

What is the key element of the 'sunk cost effect'?. Increasing the willingness to continue a project after money, effort or time has been spent. The willingness to abandon a useless project. The individual does not care what they are losing. The individual cares about all the costs they have.

According to the document, the 'sunk cost effect' is most closely related to... Mental accounting. Framing effect. Reciprocity effect. Loss aversion.

In the context of the capital market example, how do investors exhibit the 'sunk cost effect'?. Selling shares as soon as they start falling in price. Holding onto falling stocks for too long. Buying more stocks when the prices are falling. Ignoring the stock market.

What are the two main dimensions of the sunk cost effect?. Size and Time. Wealth and Poverty. Income and Expenses. Risk and Reward.

What is the 'Reciprocity effect'?. Individuals are more willing to take specific actions if they have benefited from the actions of others in the future. Individuals are less willing to take specific actions if they have benefited from the actions of others. Individuals do not care about the actions of others. Individuals are only willing to help themselves.

In the Thailand example, the price for a holiday is... The total price is 5,000 PLN. The price is 5,000 PLN per person. The price is 5,000 in the lottery. There is no price mentioned.