Reference no: EM133381033

Questions

1. Among prospect theory's most important findings is that

A) decision making can become useful in producing predictions

B) it is most applicable to domestic policy

C) leaders are likely to take bigger risks to avoid losses than to achieve gains

D) recognition of the status quo leads to unpredictable behavior

2. The policies adopted by Nazi Germany under Adolf Hitler's leadership are perhaps best explained by

A) the organizational process model

B) the substantial effect of individual decision making

C) the role of groupthink

D) the bureaucratic politics model

3. Why is groupthink a problem?

A) It prevents the group of decision makers from debating all possible options

B) It forces compromise on most decisions

C) It always leads to bad decisions

D) It causes individual members of the group to lash out at each other

4. What does prospect theory imply about the risks of global warming?

A) Since there are no tangible victims of climate change, leaders will never be willing to take a political risk involving the environment

B) Leaders will continue to disregard global warming because the high costs are long-term rather than short-term

C) Leaders will advocate for any issue that will help garner votes during an election

D) If the high costs of global warming become clearer, leaders will be more likely to take risks to avoid them

5. What theory sees decision makers as "naïve scientists" actively working to understand the world accurately?

A) expected utility theory

B) attribution theory

C) cognitive dissonance theory

D) theory of bounded rationality