Question 1

Error management theory suggests that, when it comes to dating and mating members of the opposite sex, men will be more prone to ____ than women.

Accepted Answer

The answer of Error management theory suggests that, when it...

Question 2

The so-called "certainty effect" in decision-making refers to tendency for people to give greater weight to ____ than to ____.

Accepted Answer

The certainty effect refers to the tendency for people to give greater weight to definite outcomes than to probabilities. This means that people are more likely to choose a certain outcome over a probabilistic outcome, even if the probabilistic outcome has a higher expected value.

Question 3

The tendency for people to place greater weight on the present over the future in decision-making is known as ____.

Accepted Answer

Temporal discounting refers to the tendency for people to prioritize immediate rewards over long-term benefits. This can lead to impulsive decision-making and difficulty in delaying gratification. The other options (certainty effect, reactance, now-or-never effect) do not relate specifically to the prioritization of the present over the future in decision-making.

Question 4

Mark is comparing two jobs. One pays $70,000 per year, but will be very stressful. The other pays $60,000, but will be less stressful. According to research presented in your text on Money Matters , Mark will ____.

Accepted Answer

The answer of Mark is comparing two jobs. One pays...

Question 5

When you are deciding between two apartments, assuming you can afford both of them and they are both adequate for your needs, what feature should you pay most attention to if you want to maximize your satisfaction with the apartment a year after you have moved in?

Accepted Answer

Neighborhood quality is the factor that will have the greatest impact on your overall satisfaction with the apartment a year after you have moved in. A pleasant and convenient neighborhood with lots of things to do will make you happier in the long run than a cheaper or larger apartment in a less desirable location.

Question 6

Recent research has demonstrated that men and women perceive certain behaviors differently: Men are more likely than women to assume that an innocent smile is a sign of flirtation, while women are more likely than men to assume that blatant flirtation is merely a sign of friendliness. These research findings are most consistent with ____.

Accepted Answer

Error management theory suggests that in situations where the cost of making an error is high (such as missing a potential mate), individuals may make biased judgments to reduce the likelihood of errors. In this case, men may perceive an innocent smile as flirtation to avoid the error of missing a potential mate, while women may perceive blatant flirtation as friendliness to avoid the error of misinterpreting a situation and potentially damaging a friendship. This explanation is consistent with the research findings described in the question.

Question 7

What is temporal discounting?

Accepted Answer

Temporal discounting refers to the tendency for people to prioritize immediate rewards over longer-term rewards, which can lead to choosing options that provide immediate gratification over options that have greater long-term benefits.

Question 8

As discussed in the text, when purchasing a car, people end up paying a bit more attention than intended to choices such as color and engine size, and a bit less attention than intended on information such as the chances of fatalities should there be an accident with the car. This pattern can be taken as evidence for ____.

Accepted Answer

The answer of As discussed in the text, when purchasing...

Question 9

According to error management theory, when it comes to making decisions about dating members of the opposite sex, men will be relatively more prone to ____, while women will be relatively more prone to ____.

Accepted Answer

Error management theory suggests that men are more prone to temporal discounting, meaning they prioritize immediate rewards over long-term consequences, while women are more prone to risk aversion, meaning they are more cautious and avoid risky decisions. Therefore, option B is the correct choice.

Question 10

Suppose that Sergej has just asked Georgia whether she would like to study with him for an upcoming English exam. Georgia is struggling in the class, and she knows that Sergej is an excellent English student, so she enthusiastically agrees. Meanwhile, Sergej interprets her enthusiasm as a sign that she might have a crush on him, and he therefore suggests that the two of them grab a bite to eat together before studying; "Georgia is very attractive," he thinks to himself, "so why not?" Georgia, meanwhile, who is completely clueless about what is on Sergej's mind, muses to herself, "well, that is so nice of him to think that I might be hungry; what a nice study partner!" The fact that Sergej and Georgia interpret things so differently here is most consistent with ____.

Accepted Answer

The fact that Sergej and Georgia interpret the situation differently can be explained by error management theory, which suggests that our cognitive biases and errors in judgment are adaptive in that they help us make decisions that are most likely to lead to successful outcomes, given the constraints of our environment. In this case, Sergej's belief that Georgia might have a crush on him may be an error in judgment, but it is one that is adaptive in that it could lead him to pursue a romantic relationship with her, which could be beneficial in the long run if things work out. Similarly, Georgia's interpretation of Sergej's invitation to get food as a kind gesture rather than a romantic advance may be an error in judgment, but it is one that is adaptive in that it allows her to maintain a positive relationship with Sergej as a study partner.

Question 11

According to ____ theory, when it comes to dating and mating members of the opposite sex, men will take advantage of every opportunity to pass along their genes.

Accepted Answer

The theory that suggests men will take advantage of opportunities to pass along their genes is known as error management theory. This theory suggests that men have evolved to take risks when it comes to dating and mating in order to increase their chances of passing on their genes. Therefore, error management theory is the best fit for this question.

Question 12

Participants in a study of decision making considered two different ways of resolving a dispute with a neighbor. In one solution, the participant received $600 and the neighbor received $800. In the other solution, the participant and the neighbor each got $500.  When participants compared the two possible solutions, which option did they prefer?

Accepted Answer

The answer of Participants in a study of decision making...

Question 13

When people are making choices between two options that differ both qualitatively and quantitatively, they tend to focus on ____.

Accepted Answer

The answer of When people are making choices between two...

Question 14

MOST people show a tendency ____ when making decisions that require tradeoffs.

Accepted Answer

This tendency is known as loss aversion, and has been well documented in behavioral economics research. People tend to feel the pain of a loss more strongly than the pleasure of a gain, and therefore are more likely to be risk averse when faced with a decision that could result in a loss.

Question 15

The tendency to give more weight to possible losses than to possible gains when making decisions that require trade-offs is known as ____.

Accepted Answer

The tendency to give more weight to losses than gains is known as risk aversion. It is a common phenomenon in human decision-making and can have significant effects on behavior in situations where trade-offs need to be made between risk and reward. The certainty effect refers to the preference for certain outcomes over uncertain outcomes, temporal discounting refers to the tendency to give more weight to immediate rewards than to future rewards, and the status quo bias refers to the preference for maintaining the current situation or decision.

Question 16

Research shows that when making decisions, MOST people are more interested in ____ as opposed to ____.

Accepted Answer

This is known as loss aversion, where people are more likely to be motivated by the fear of losing something rather than the possibility of gaining something. It is a widely studied phenomenon in behavioral economics and psychology.

Question 17

Even though she is not in desperate need of boots, Ellen says that she would rather buy a pair of boots today (for $200)rather than wait two weeks, when they will be on sale for half the price. Ellen's decision most likely involves ____.

Accepted Answer

Ellen's decision involves temporal discounting because she is prioritizing immediate satisfaction (buying the boots today) over long-term savings (waiting two weeks for the sale).

Question 18

People tend to say that they would prefer to have $1000 today rather than $1200 two weeks from now-even though, logically, they would be better off with the $1200 in two weeks. The phenomena underlying this tendency is known as ____.

Accepted Answer

This tendency is known as temporal discounting, which refers to the tendency to value immediate rewards more highly than delayed rewards, even if the delayed rewards are objectively larger. The fact that people would choose $1000 today rather than $1200 in two weeks is an example of temporal discounting- they are discounting the value of the $1200 in the future because it is not immediately available.

Question 19

Many people do not invest in 401K plans or other retirement plans-even though they are not broke, and could afford to put money aside. One explanation for this is the fact that people tend to engage in ____ when making decisions about how to manage their money.

Accepted Answer

The answer of Many people do not invest in 401K...

Question 20

Participants in a study of decision making were asked to rate a particular financial solution for solving a dispute with a neighbor. Half of the participants rated the favorability of a solution in which they would receive $600 and their neighbor would receive $800; the other half of participants rated a solution in which each received $500. Which option was most favorably rated?

Accepted Answer