Test Bank For Judgment in Managerial Decision Making 8th Edition by Max H. Bazerman

Multiple choice

1. According to the “multiple-selves” theory, if an online DVD rental service could offer same-day deliveries, so that people who order a movie receive it the same day, what change is likely to happen to the rental profile?

1. More documentaries and art films will be rented and less comedies and action movies.
2. More comedies and action movies will be rented and less documentaries and art films.
3. More documentaries and art films will be rented, but less will actually be watched.
4. More comedies and action movies will be rented, but less will actually be watched.

Ans: b

Response: p. 108

1. Self-serving reasoning causes people to pay less critical attention when assessing:
   1. Favorable information.
   2. Ambiguous information.
   3. Probabilities.
   4. Threatening information to their sense of self.

Ans: a

Response: p. 113

1. Which emotion may decrease the endowment effect, causing an owner of a good to lower his or her selling price?
   1. Anger.
   2. Disgust.
   3. Happiness.
   4. Fear.

Ans: b.

Response: p. 115

1. A senator wants to pass a bill to implement a substantial increase in the tax on gasoline. Which feature is most likely to help the bill’s chances of being passed?
   1. To frame the bill in terms of potential gains, instead of potential losses.
   2. To emphasize that people today do not do enough to reduce gas consumption, so as to tap other senators’ self-worth.
   3. To propose that the bill would come into effect in the future, not immediately.
   4. To emphasize the fairness of the bill, so as to tap other’s senator’s fairness perceptions.

Ans: c

Response: p. 108

1. Which of the following helps promote more rational decision-making?
   1. Standards of comparison
   2. Focus on salient attributes
   3. The “multiple-selves” approach
   4. Positive, rather than negative affect

Ans: a

Response: p. 107

True/False

1. Cognitive neuroscience research has refuted the “multiple-selves” theory, finding that both short-term and long-term gratifications activate the same regions in the brain.

Ans: False.

Response: p. 106

1. Relative to the present time period, people tend to view all gains and losses in the future to be worth less than they would be in the present.

Ans: True.

Response: p. 108

1. People’s assessments of fair allocation of resources are influenced primarily by the importance of attributes affecting what is fair.

Ans: False.

Response: p. 112

Fill-in-the-Blank

1. A rational decision maker would discount the future using ___________ discounting.

Ans: exponential.

Response: p. 107

1. __________ is a negative emotion that shares many features with happiness, such as increased confidence and decreased sensitivity to risk.

Ans: anger.

Response: p. 114