48) Which of the following statements is true regarding a contrast effect?
A) It attributes success to internal factors and blames failure on external factors.
B) It involves judging a person on the basis of perception of the group to which he or she
belongs.
C) It involves evaluation of a person’s characteristics based on comparison with another person.
D) It indicates a tendency to draw a general conclusion about a person on the basis of one
feature.
E) It indicates a tendency to fixate on initial information and fail to accept subsequent data.
49) Jessica recently joined a new company and was first introduced to Michelle, her cubicle
neighbor. Michelle came across as amiable and cheerful. During lunch she met another
colleague, Carrie, who did not come across as friendly as Michelle. In this situation, Jessica’s
interpretation of Carrie’s personality is most likely to be affected by ________.
A) confirmation bias
B) contrast effect
C) fundamental attribution error
D) self-serving bias
E) bandwagon effect
50) Judging someone on the basis of one’s perception of the group to which the person belongs is
called ________.
A) confirmation bias
B) stereotyping
C) framing effect
D) self-serving bias
E) bandwagon effect
51) Which of the following is a shortcut used in judging others by making generalizations?
A) hindsight bias
B) randomness error
C) stereotyping
D) illusory superiority
E) telescoping effect
52) Rose Buffay needs to give a presentation to the board of directors of her organization next
week. She knows that her presentation will play an important role in her performance appraisal
in the next quarter. However, she knows that two of her colleagues, John Roy and Keith
Mathews, will also be giving a presentation on the same issue. She is nervous because she
believes that men have a better flair for giving presentations. Buffay’s perception of Roy and
Mathews is most likely characterized by ________.
A) halo effect
B) contrast effect
C) hindsight bias
D) stereotyping
E) confirmation bias
53) A manager believes that he should not hire older workers because they can’t learn new skills.
This belief is an example of ________.
A) anchoring bias
B) fundamental attribution error
C) confirmation bias
D) self-serving bias
E) stereotyping
54) Which of the following terms refers to choices made from among two or more alternatives?
A) inquiry
B) decision
C) perception
D) intuition
E) rationalization
55) Which of the following terms refers to a situation in which a person inaccurately perceives
another person and the resulting expectations cause the other person to behave in ways consistent
with the original perception?
A) confirmation bias
B) self-fulfilling prophecy
C) attribution theory
D) contrast effect
E) bandwagon effect
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56) Sarah Covington, a sales manager at Synergy Corporation Bank, often keeps low
expectations of her team. She feels that they are underqualified for their job and do not have
substantial experience to sell a large number of accounts. Covington’s team does not feel
motivated enough and invariably underperforms and misses targets on a regular basis. Which of
the following concepts best explains Covington’s team’s poor performance?
A) hindsight bias
B) self-fulfilling prophecy
C) confirmation bias
D) contrast effect
E) bandwagon effect
57) Attribution theory tries to explain the ways in which we judge people differently, depending
on the meaning we attribute to a given behavior.
58) According to attribution theory, if a behavior scores high on consensus and distinctiveness,
we tend to consider it as an internally caused behavior.
59) A candidate is likely to receive a more favorable evaluation if preceded by mediocre
applicants and a less favorable evaluation if preceded by strong applicants. This is an example of
the halo effect.
60) Stereotyping helps individuals make quick decisions through generalizations.
61) According to attribution theory, the more consistent a behavior, the more we are inclined to
attribute it to external causes.
62) The tendency to draw a general impression about an individual on the basis of a single
characteristic is known as the contrast effect.
63) The tendency for individuals to attribute their own successes to internal factors and put the
blame for failures on external factors is known as confirmation bias.
64) The tendency to underestimate the influence of external factors and overestimate the
influence of internal factors when making judgments about the behavior of others is known as
the randomness error.
65) What is selective perception?
66) Discuss attribution theory.
67) Compare the fundamental attribution error and self-serving bias.
68) Victoria Hastings works as a sales manager at a bank and her behavior is characterized by
the fundamental attribution error and halo effect. Explain with the help of an example what
Hastings’ behavior is most likely to be toward her team in such a situation.
69) A(n) ________ refers to a discrepancy between the current state of affairs and some desired
state.
A) problem
B) decision
C) instinct
D) intuition
E) perception
70) In an interview, information elicited early from an interviewee carries greater weight than
information elicited later.
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71) Explain the relationship between decision making and perception.
72) A manager doing performance appraisals gives more weight to recent employee behaviors
than to behaviors of six or nine months earlier. This shows that the manager’s perception is
affected by ________ bias.
A) self-serving
B) availability
C) impact
D) distinction
E) hindsight
73) ________ refers to staying with a decision even when there is clear evidence it’s wrong.
A) Escalation of commitment
B) Fundamental attribution error
C) Randomness error
D) Risk aversion
E) Availability bias
74) The tendency to believe falsely, after an outcome of an event is actually known, that one
would have accurately predicted that outcome is known as ________ bias.
A) self-serving
B) confirmation
C) impact
D) hindsight
E) anchoring
75) Which of the following is a decision-making model that describes how individuals should
behave in order to maximize some outcome?
A) rational decision-making model
B) flexible decision-making model
C) distributive decision-making model
D) associative decision-making model
E) integrative decision-making model
76) Which of the following statements is true regarding the rational decision-making model?
A) It takes into consideration the limited information-processing capability of individuals.
B) It involves constructing simplified models without capturing all their complexity.
C) It deals with satisficing decisions by seeking solutions that are satisfactory and sufficient.
D) It assumes that an individual is able to identify all relevant options in an unbiased manner.
E) It is an unconscious decision-making process created from distilled experience.
77) What is the first step in the rational decision-making model?
A) developing alternatives
B) defining the problem
C) identifying the decision criteria
D) weighing the decision criteria
E) evaluating the alternatives
78) Anne Warner, a climate campaigner at an environmental organization, is in charge of
implementing a campaign activity where she needs to increase the use of renewable energy in the
villages of Vietnam. For her project, she uses the rational decision-making model to implement
activities. She has just completed identifying an appropriate criteria for decision making and has
allocated weights to the criteria. Which of the following is Warner most likely to undertake next
according to the model?
A) develop options of wind, solar, and hydro energy
B) analyze the problems of the project
C) determine goals of the project
D) select hydro energy as the best option
E) weigh advantages between solar and wind energy
79) With reference to decision making, which of the following does satisficing involve?
A) weighing each criteria before making a decision
B) seeking solutions that are satisfactory and sufficient
C) scrutinizing and evaluating each alternative in detail
D) selecting the best option with the highest utility
E) finding optimal solutions to problems
80) Emily Boyce, a project manager at an insurance firm, regularly satisfices while making
decisions. She often comes across complicated problems which would take a long time to
resolve. Due to the pressing deadlines, she often meets project goals by satisficing a large
number of her decisions. Which of the following is Boyce most likely to do?
A) seek complete information while making decisions
B) search for solutions that are reasonable
C) identify all possible options to solutions
D) analyze each alternative in an unbiased manner
E) choose the optimal solution to each problem