ECONOMICS (CBSE/UGC NET)

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ECONOMICS

DECISION MAKING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If I meet two students from your school and they are brilliant psychology students, I may then conclude that your school must have an amazing psychology program. This conclusion follows a simple “rule of thumb” or a mental short-cut called a
A
stereotype
B
participant bias
C
matching bias
D
heuristic
Explanation: 

Detailed explanation-1: -Which of the following statements is true about thinking, decision making and problem solving? Decision making is a part of problem solving-and both decision making and problem solving are examples of thinking.

Detailed explanation-2: -In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rational or irrational.

Detailed explanation-3: -When making a decision in such a situation, people tend to employ two different decision-making strategies: the availability heuristic and the representativeness heuristic. Remember, a heuristic is a rule-of-thumb mental short-cut that allows people to make decisions and judgments quickly.

Detailed explanation-4: -There are two systems models of thinking: system 1-intuitive, automatic, quick and requiring limited effort, influenced by biases. system 2-rational, goal directed, requires intentional effort and time, analyses/controls for biases.

There is 1 question to complete.
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