70) People’s behavior is based on their perception of what reality is, not on reality itself.
71) Our perception of a target is affected by the characteristics of the target and not by our
personality and past experiences.
72) The relationship of a target to its background influences our perception of that target.
73) According to the attribution theory, if a behavior scores high on consensus and
distinctiveness, we tend to consider it as an internally caused behavior.
74) In the attribution theory, “distinctiveness” refers to whether an individual displays different
behaviors in different situations.
75) When we make judgments about the behavior of other people, we tend to overestimate the
influence of external factors and underestimate the influence of internal or personal factors.
76) When we draw a general impression about an individual on the basis of a single
characteristic, such as intelligence, sociability, or appearance we are using a shortcut called the
contrast effect.
77) The halo effect occurs because it is impossible for us to assimilate everything we see.
78) When we judge someone on the basis of our perception of the group to which he or she
belongs, we are using the shortcut called stereotyping.
79) The rational decision-making model takes into consideration the fact that all the information
pertaining to the problem might not be available to the decision maker.
80) A common tendency related to the overconfidence bias is that as managers and employees
become more knowledgeable about an issue, they become more likely to display overconfidence.
81) We tend to accept at face value information that confirms our preconceived views, while we
are critical and skeptical of information that challenges these views.
82) An individual’s place in the interview schedule may affect the interviewer’s evaluation of the
applicant. This is an example of confirmation bias.
83) People who carefully gather and consider information consistent with the rational decision-
making model are more likely to engage in escalation of commitment than those who spend less
time thinking about their choices.
84) The first ethical yardstick is utilitarianism, in which decisions are made solely on the basis of
their outcomes, ideally to provide the greatest good for the greatest number.
85) A focus on utilitarianism promotes the rights of minorities.
86) Passive positive moods, such as calm, are more conducive to creativity than moods such as
happiness that encourage interaction with the world.
87) Those who spend extensive periods of time in other cultures generate more innovative
solutions to problems.
88) What factors that operate to shape and sometimes distort perception reside in the perceiver,
what factors reside in the target being perceived, and what factors reside in the context of the
situation in which the perception is made?
89) Discuss the attribution theory.
90) Contrast the fundamental attribution error and the self-serving bias.
91) Discuss four shortcuts used in judging others.
92) What is bounded rationality? How is it related to decision making?
93) What is escalation of commitment?
94) Discuss some of the errors in perceptual judgment made by interviewers in job interviews.
95) List and explain any four decision biases or errors.
96) Explain how stereotyping can cause problems for some managers when making ethical
decisions. Provide an example.
97) Explain the three components of creativity. Name two biases and examples of how they
would affect creativity.
98) When neither the perceiver nor the target has changed, which of the following factors
influences perception?
A) self-serving bias
B) stereotyping
C) satisficing
D) selective perception
E) situation
99) What are the three generally accepted constructs of decision making each of us employs to
make determinations?
A) rational decision making, bounded rationality, and intuition
B) escalation of commitment, risk aversion, and hindsight bias
C) utilitarianism, rights, and justice
D) expertise, creative-thinking skills, and intrinsic task motivation
E) distinctiveness, consensus, and consistency
100) The more optimistic the entrepreneurs, the less successful the performance of their new
ventures. Which of the following systematic biases and errors creep into their judgments?
A) hindsight bias
B) anchoring bias
C) confirmation bias
D) availability bias
E) overconfidence bias
101) Our tendency to believe we have some control over our world and our destiny and that we
can predict the outcome of random events is the ________.
A) overconfidence bias
B) randomness error
C) bounded rationality
D) intuitive decision making
E) selective perception
102) From the 1930s through the mid-1980s, General Motors consistently gave promotions and
bonuses to managers who kept a low profile and avoided controversy. This is an example of
which of the following organizational constraints?
A) performance evaluation
B) reward systems
C) formal regulations
D) system-imposed time constraints
E) historical precedents
103) People who carefully gather and consider information consistent with the rational decision-
making model are more likely to engage in which of the following decision-making errors?
A) escalation of commitment
B) randomness error
C) availability bias
D) performance evaluation
E) reward systems
104) One of the core problems that created the financial meltdown of 2008 was that large loans
were made to individuals who could not repay them, and the finance companies purchased these
bad debts without realizing who how poor the prospects of repayment were. Which of the
following decision making error was made by the lenders and borrowers?
A) hindsight bias
B) availability bias
C) overconfidence bias
D) confirmation bias
E) anchoring bias
105) Cultural differences in attribution tendencies mean the basic concepts of attribution and
blame completely differ across cultures.
106) It is easier to deal with an unmanageable number of stimuli if we use heuristics.
107) All organizations create rules and policies to program decisions and get individuals to act in
the intended manner.