Ch. 13 Decision Making Flashcards
1
Q
People that make their choices so as to maximize something of value, whatever that something may be
A
Economics Theory
2
Q
The ease of bringing an example to mind is a means of estimating the probability of occurrence (likelihood)
A
Availability Heuristic
3
Q
The memory of how we acted previously changes when we learn the outcome of an event
A
Hindsight Bias
4
Q
Tendency to seek and find information that confirms an initial hypothesis
A
Confirmation Bias
5
Q
The decision to continue to invest in something simply because on has invested in it before and ones hopes to recover ones investment.
A
Sunk Cost Fallacy
6
Q
The way that questions are framed influences your decisions. (400 people will die, 200 people will be saved)
A
Framing effects
