Social Science

Cognitive Biases and Decision Making

1,902 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 used to describe the psychological phenomenon where individuals tend to conform to the fashion choices and trends of their peers or social group?

  1. Social Comparison Theory

  2. Conformity Bias

  3. Groupthink

  4. Fashion Diffusion
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Conformity Bias is a cognitive bias that leads individuals to adjust their beliefs, attitudes, and behaviors to match those of the group they belong to or identify with. In fashion psychology, this bias can manifest in the tendency to adopt fashion trends and styles that are popular within one's social circle.

Multiple choice

What is the term used to describe the psychological phenomenon where individuals tend to perceive others more attractive when they are wearing clothing that is congruent with their personality and self-concept?

  1. Congruence Effect

  2. Halo Effect

  3. Confirmation Bias

  4. Mere Exposure Effect
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Congruence Effect is a psychological phenomenon where individuals tend to perceive others more attractive when they are wearing clothing that is congruent with their personality and self-concept. This effect suggests that clothing choices can influence how others perceive and evaluate us.

Multiple choice

What is the term used to describe the psychological phenomenon where individuals tend to perceive others more favorably when they are wearing clothing that is similar to their own?

  1. Mere Exposure Effect

  2. Similarity-Attraction Effect

  3. Halo Effect

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

The Similarity-Attraction Effect is a psychological phenomenon where individuals tend to perceive others more favorably when they are wearing clothing that is similar to their own. This effect suggests that we are drawn to those who share similar fashion preferences and styles.

Multiple choice

What is the term for the tendency for people to perceive objects as being grouped together based on their proximity, similarity, and continuity?

  1. Gestalt psychology

  2. Perceptual organization

  3. Figure-ground perception

  4. Depth perception
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Perceptual organization is the term for the tendency for people to perceive objects as being grouped together based on their proximity, similarity, and continuity.

Multiple choice

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

  1. The confirmation bias

  2. The availability heuristic

  3. The anchoring bias

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

The confirmation bias, the availability heuristic, and the anchoring bias are all examples of cognitive biases. Cognitive biases are systematic errors in thinking that can lead to inaccurate judgments and decisions.

Multiple choice

What is the term for the tendency for people to conform to the opinions of the majority?

  1. Groupthink

  2. Social loafing

  3. Deindividuation

  4. Diffusion of responsibility
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Groupthink is the term for the tendency for people to conform to the opinions of the majority.

Multiple choice

What is the term for the tendency for people to underestimate the risks of environmental problems?

  1. Optimism bias

  2. Risk perception bias

  3. Illusion of control

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

Optimism bias, risk perception bias, and illusion of control are all terms for the tendency for people to underestimate the risks of environmental problems.

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.