You are part of a group, making a decision about whether it is appropriate to discontinue
research on a new drug. This new drug would save lives, but it is uncertain whether you can
develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a
small fortune on this drug. You have gathered so much information in preparation to making the
decision that you are unable to sort the good information from the superfluous data. You just feel
that this project has merit.
44) What form of decision making are you using if you decide to continue the project because
you feel that the project has merit?
A) optimization
B) intuitive
C) rational
D) satisficing
E) bounded rationality
45) Which of the following is an example of a shortcut used in judging others?
A) hindsight bias
B) confirmation bias
C) stereotyping
D) randomness error
E) availability bias
46) The ________ bias can explain why managers doing performance appraisals give more
weight to recent employee behaviors than to behaviors of 6 or 9 months earlier.
A) self-serving
B) availability
C) distinction
D) confirmation
E) hindsight
47) We tend to accept at face value information that is consistent with our preconceived views,
while we are critical and skeptical of information that challenges these views. This represents the
________ bias.
A) distinction
B) impact
C) hindsight
D) confirmation
E) self-serving
48) The ________ bias is typically associated with negotiation.
A) confirmation
B) distinction
C) anchoring
D) hindsight
E) availability
49) While negotiating salary with your prospective employer, if you suggest an initial target
salary of $55,000, your employer will consider $50,000 to $60,000 a reasonable range for
negotiation, but if you mention $55,650, your employer is more likely to consider $55,000 to
$56,000 the range of likely values for negotiation. In this example your employer is exhibiting
the ________ bias.
A) availability
B) anchoring
C) hindsight
D) confirmation
E) impact
50) In a study conducted by Amos Tversky and Daniel Kahneman, the two showed that when
asked to guess the percentage of African nations which are members of the United Nations,
people who were first asked “Was it more or less than 10%?” guessed lower values (25% on
average) than those who had been asked if it was more or less than 65% (45% on average). This
example best represents the ________
A) anchoring bias
B) contrast effect
C) confirmation bias
D) availability bias
E) hindsight bias
51) ________ refers to staying with a decision even when there is clear evidence it’s wrong.
A) Escalation of commitment
B) Hindsight bias
C) Satisficing
D) Selective perception
E) Availability bias
52) Which of the following types of biases in decision making represents the tendency of
decision makers to prefer a sure thing?
A) hindsight bias
B) bounded rationality
C) escalation of commitment
D) selective perception
E) risk aversion
53) Tom knows that the title insurance company made a mistake on his property title. Because of
their mistake, his neighbor now has access to an easement road through the 25 acres located at
the back of his property. He can’t use the acreage for pasture, because his neighbor insists that
the gates remain open. The title company has offered a $40,000 settlement. Tom has decided to
take the settlement rather than possibly lose in court if he were to sue the title company for more
money. Tom’s decision is based on ________.
A) hindsight bias
B) availability bias
C) risk aversion
D) randomness error
E) escalation of commitment
54) Which of the following statements is true regarding the hindsight bias?
A) It indicates a tendency to fixate on initial information and fail to adequately adjust for
subsequent information.
B) It indicates that we seek out information that reaffirms our past choices, and we discount
information that contradicts them.
C) It indicates our tendency to base judgments on information readily available.
D) It indicates our tendency to believe falsely, after the outcome is known, that we would have
accurately predicted it.
E) It indicates our tendency to draw a general impression about an individual on the basis of a
single characteristic, such as intelligence.
55) For many people, a 50–50 flip of a coin for $100 might not be worth as much as a sure
promise of $50, even though the gamble is mathematically worth twice as much as the sure
thing. This is an example of ________.
A) selective perception
B) self-serving bias
C) risk aversion
D) availability bias
E) confirmation bias
56) “A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an
equitable distribution of benefits and costs.”
Which of the following statements is true regarding this criterion?
A) Union members typically oppose this view.
B) It justifies paying people based on their performance.
C) It promotes risk taking and innovation.
D) It increases productivity.
E) It protects the interests of the underrepresented and less powerful.
57) In the ethical yardstick of ________, decisions are made solely on the basis of their
outcomes, ideally to provide the greatest good for the greatest number.
A) utilitarianism
B) self-serving bias
C) bounded rationality
D) selective perception
E) anchoring bias
58) Which of the following statements is true regarding utilitarianism?
A) It protects the interests of the underrepresented and less powerful.
B) It reduces productivity and efficiency.
C) It promotes decision making that is consistent with fundamental liberties and privileges, as set
forth in documents such as the Bill of Rights.
D) The utilitarianism view dominates business decision making.
E) It imposes and enforces rules fairly and impartially.
59) The three criteria for making ethical decisions are ________.
A) utilitarianism, creativity, and rights
B) historical precedents, rights, and utilitarianism
C) rewards, regulations, and time orientation
D) utilitarianism, rights, and justice
E) historical precedents, reward, and justice
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Copyright © 2014 Pearson Education, Inc.
You are the manager of a development group in a large computer software company. You have
decided that it is important for your group to understand the many ways that ethical decisions can
be made and you are designing a training program on the subject of ethics.
60) If you wish to emphasize the importance of making decisions consistent with fundamental
liberties and privileges, the focus of your teaching will be on ________.
A) utilitarianism
B) justice
C) rights
D) privilege
E) service
61) Martha submitted a formal complaint to OSHA about unsafe work conditions in her
company’s warehouse. Martha is a ________.
A) utilitarian thinker
B) judge
C) creative thinker
D) whistle-blower
E) humanitarian
62) Which of the following traits does a decision maker need to have if they are to fully appraise
a problem and even see problems that others are not aware of?
A) creativity
B) rationality
C) conceptual style
D) intuition
E) individuality
63) The three-component model of creativity proposes that individual creativity essentially
requires expertise, creative thinking skills, and ________.
A) external locus of control
B) intrinsic task motivation
C) emotional intelligence
D) positivity offset
E) selective perception
64) Which of the following is a component of the three-component model that is considered as
the foundation for all creative work?
A) expertise
B) creative thinking skills
C) intrinsic task motivation
D) intuition
E) analytical skills
65) Gene is regarded by his peers as an extremely creative designer of watercraft. He attributes
much of his success to his family: he was raised by a traditional boat builder and from a very
early age was surrounded by boats and the people who made them. To what element of the three-
component model of creativity does Gene attribute his success?
A) intuitiveness
B) external locus of control
C) task motivation
D) expertise
E) creative thinking skills
66) Which of the following is a component of the three-component model of creativity that
encompasses certain personality characteristics of an individual such as the ability to use
analogies?
A) expertise
B) creative thinking skills
C) intrinsic task motivation
D) intuition
E) selective perception
67) With reference to the three-component model of creativity, which of the following
components turns creative potential into actual creative ideas?
A) expertise
B) creative thinking skills
C) intrinsic task motivation
D) intuition
E) emotional intelligence
68) Which of the following statements is true regarding creativity?
A) Avoidance-oriented negative moods such as fear and anxiety increase creativity.
B) People who score high on openness to experience are less likely to be creative.
C) Creative people tend to have external locus of control.
D) Passive negative moods such as sadness decrease creativity.
E) Having “weak ties” to creative people facilitates creativity.
69) Our perception of reality can be substantially different from objective reality.