Questions & Answers
Browse all 18 questions from the
The Science of Decisions study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
What is the term for the tendency to rely too heavily on the first piece of information offered when making a decision?
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A
Anchoring bias
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B
Loss aversion
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C
The bandwagon effect
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D
Confirmation bias
2
Which concept describes why people feel the pain of losing something more strongly than the joy of gaining the same thing?
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A
Choice paralysis
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B
Loss aversion
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C
Endowment effect
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D
Sunk cost fallacy
3
What is the name for the human tendency to follow the actions or beliefs of a larger group of people?
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A
Hindsight bias
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B
Availability heuristic
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C
The bandwagon effect
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D
Framing effect
4
When a person overvalues an object simply because they own it, this is known as:
-
A
The endowment effect
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B
The halo effect
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C
The scarcity principle
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D
Optimism bias
5
What is the term for the tendency to search for, interpret, and remember information that confirms your existing beliefs?
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A
Sunk cost fallacy
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B
Confirmation bias
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C
Availability heuristic
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D
Framing effect
6
The tendency to judge the probability of an event based on how easily examples come to mind is called:
-
A
Loss aversion
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B
Anchoring
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C
Availability heuristic
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D
Social proof
7
What is the 'Sunk Cost Fallacy'?
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A
Spending more because you already invested time or money
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B
Choosing the cheapest item
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C
Saving money for later
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D
Ignoring prices entirely
8
Which effect suggests that people react differently to a choice depending on whether it is presented as a loss or a gain?
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A
The decoy effect
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B
The framing effect
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C
The peak-end rule
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D
The paradox of choice
9
What is it called when having too many options makes it harder for a person to make a final decision?
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A
Choice overload
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B
The scarcity principle
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C
Mental accounting
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D
Reciprocity
10
What is the name of the principle where people place a higher value on items that are rare or in short supply?
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A
The bandwagon effect
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B
The scarcity principle
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C
The anchoring bias
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D
The halo effect
11
The tendency for people to believe that positive traits in one area (like being attractive) imply positive traits in others (like being smart) is known as:
-
A
The halo effect
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B
The contrast effect
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C
The framing effect
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D
The availability heuristic
12
What describes the tendency to overestimate one's own abilities or the likelihood of positive events?
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A
Optimism bias
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B
Negativity bias
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C
Hindsight bias
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D
Choice overload
13
What is the 'Peak-End Rule' in psychology?
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A
Judging an experience by its start and finish
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B
Judging an experience based on its most intense point and its end
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C
Making decisions only at the end of a week
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D
Choosing the first option presented
14
What is the phenomenon where people perceive a stimulus differently based on what it is compared to?
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A
The contrast effect
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B
The endowment effect
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C
The anchoring bias
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D
The bandwagon effect
15
What term describes the tendency to believe that an event was predictable after it has already occurred?
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A
Hindsight bias
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B
Confirmation bias
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C
Optimism bias
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D
Availability heuristic
16
What is 'Mental Accounting'?
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A
The habit of categorizing money into different 'buckets' based on where it came from
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B
Calculating interest rates
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C
Saving money in a bank
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D
The process of trading goods
17
The tendency to focus on information that is easily accessible in memory is an example of what?
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A
Heuristics
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B
Economic rationalism
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C
Barter systems
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D
Opportunity cost
18
Which bias explains why people often prefer the status quo (keeping things as they are) over making a change?
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A
Default bias
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B
Confirmation bias
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C
Hindsight bias
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D
Framing bias
