Social Science

Cognitive Biases and Decision Making

1,880 Questions

Explore a curated set of questions on cognitive biases, decision making, and behavioral economics. These concepts evaluate how social norms, emotions, and heuristics influence human judgment and group behavior. Master these topics to build a strong foundation for psychology and social science exams.

Behavioral economicsSocial group influencesEmotional decision makingConfirmation bias

Cognitive Biases and Decision Making Questions

Multiple choice

What is the term for the tendency to spend more money when using a credit card compared to cash?

  1. Credit card effect

  2. Plastic effect

  3. Cashless effect

  4. Digital payment effect
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The credit card effect refers to the tendency for consumers to spend more money when using a credit card compared to cash, due to psychological factors such as reduced perceived pain of payment.

Multiple choice

Which cognitive bias leads individuals to overestimate the likelihood of positive events and underestimate the likelihood of negative events?

  1. Optimism bias

  2. Confirmation bias

  3. Hindsight bias

  4. Framing bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Optimism bias refers to the tendency for individuals to overestimate the likelihood of positive events and underestimate the likelihood of negative events, which can influence financial decision-making.

Multiple choice

What is the term for the tendency to continue investing in a losing stock or asset, hoping to recover the initial investment?

  1. Sunk cost fallacy

  2. Confirmation bias

  3. Hindsight bias

  4. Framing bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The sunk cost fallacy refers to the tendency for individuals to continue investing in a losing stock or asset, hoping to recover the initial investment, despite evidence suggesting that the investment is unlikely to recover.

Multiple choice

What is the term for the tendency to spend more money when presented with a variety of choices?

  1. Variety effect

  2. Choice overload effect

  3. Paradox of choice

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The variety effect, choice overload effect, and paradox of choice all refer to the tendency for consumers to spend more money when presented with a greater variety of choices.

Multiple choice

What is the term for the tendency to delay saving for retirement or other long-term goals due to the perceived distance of those goals?

  1. Hyperbolic discounting

  2. Present bias

  3. Temporal discounting

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Hyperbolic discounting, present bias, and temporal discounting all refer to the tendency to delay saving for retirement or other long-term goals due to the perceived distance of those goals.

Multiple choice

What is the term for the tendency to overestimate the benefits and underestimate the costs of a financial product or service?

  1. Framing bias

  2. Confirmation bias

  3. Optimism bias

  4. Hindsight bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Framing bias refers to the tendency to overestimate the benefits and underestimate the costs of a financial product or service, depending on how the information is presented.

Multiple choice

What is the term for the tendency to sell an investment too early after a loss, locking in the loss, and to hold onto an investment too long after a gain, missing out on potential profits?

  1. Disposition effect

  2. Confirmation bias

  3. Hindsight bias

  4. Framing bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The disposition effect refers to the tendency to sell an investment too early after a loss, locking in the loss, and to hold onto an investment too long after a gain, missing out on potential profits.

Multiple choice

What is the term for the tendency to attribute financial success to personal skill and financial failure to external factors?

  1. Self-attribution bias

  2. Confirmation bias

  3. Hindsight bias

  4. Framing bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Self-attribution bias refers to the tendency to attribute financial success to personal skill and financial failure to external factors, such as bad luck or market conditions.

Multiple choice

What is the term for the tendency to perceive and interpret information in a way that confirms existing beliefs and expectations about gender?

  1. Confirmation Bias

  2. Gender Bias

  3. Stereotype Threat

  4. Gender Identity Disorder
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Confirmation Bias refers to the tendency to seek out and interpret information in a way that confirms existing beliefs and expectations, including those related to gender.

Multiple choice

What is the term for the tendency to experience anxiety or underperform in situations where one's gender identity or expression is threatened?

  1. Confirmation Bias

  2. Gender Bias

  3. Stereotype Threat

  4. Gender Identity Disorder
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Stereotype Threat refers to the anxiety or underperformance experienced by individuals when they are aware of negative stereotypes associated with their gender or other social group.

Multiple choice

What is the term for the phenomenon in which consumers become desensitized to privacy risks over time?

  1. Privacy fatigue

  2. Privacy apathy

  3. Privacy indifference

  4. Privacy numbness
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Privacy fatigue is the term for the phenomenon in which consumers become desensitized to privacy risks over time.

Multiple choice

What is the term for the phenomenon in which the perception of color is influenced by the cultural and linguistic context?

  1. Color symbolism

  2. Color association

  3. Color categorization

  4. Color universals
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Color symbolism is the phenomenon in which the perception of color is influenced by the cultural and linguistic context. Different cultures and languages may associate different meanings and symbols with different colors.

Multiple choice

What is the term for the phenomenon in which the perception of color is influenced by the expectations and beliefs of the observer?

  1. Color constancy

  2. Color contrast

  3. Color symbolism

  4. Color expectation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Color expectation is the phenomenon in which the perception of color is influenced by the expectations and beliefs of the observer. For example, a person who expects to see a red object may be more likely to perceive an object as red, even if it is actually a different color.

Multiple choice

What is the term used to describe the phenomenon where the relationship between two variables changes depending on the level of aggregation of the data?

  1. Simpson's paradox

  2. Ecological fallacy

  3. Confounding

  4. Bias
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simpson's paradox refers to the phenomenon where the relationship between two variables changes depending on the level of aggregation of the data. For example, a positive association between two variables at the individual level may become a negative association at the aggregate level.

Multiple choice

What is the term for the unconscious bias that leads individuals to perceive and interpret information in a way that confirms their existing beliefs and expectations?

  1. Confirmation bias

  2. Gender bias

  3. Stereotype bias

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Confirmation bias is the unconscious bias that leads individuals to perceive and interpret information in a way that confirms their existing beliefs and expectations. This bias can influence how individuals interpret gendered language and can contribute to the perpetuation of gender stereotypes.