Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. A manager who is helping a customer return some shoes they purchased last week is dealing with whattype of decision?
a. Non-programmed decision
b. Uncertainty
c. Bounded rationality
d. Programmed decision
Q. A solution to a problem that is arrived at through an unstructured process of decision making is calleda…………..
a. Bounded rationality
b. Non-programmed decision
c. Programmed decision
d. Uncertainty
Q. As a manager moves to higher positions in an organisation the ability to make ______ becomes ______important.
a. Non-programmed; more
b. Programmed; more
c. Non-programmed; less
d. Programmed; much more
Q. In Herbert Simon's theory, a manager who accepts the first satisfactory solution to a problem has made a ______ decision, while a manager who continues to search for the best possible solution is seeking to find a ______ decision
a. Maximising; satisficing
b. Minimising; maximizing
c. Satisficing; maximising
d. Maximising; minimizing
Q. The decision making model which emphasises that organisations contain diverse interest groups who will bargain about goals and alternative actions, often with incomplete information is known as the…………
a. Inspirational or garbage can model
b. Political model
c. Administrative or incremental model
d. Computational and rational model
Q. Which of the following is not among the reasons for complexity of decisions?
a. Individuals have different risk propensities.
b. There are many criteria for making choices.
c. Decisions have immediate, short-term impact.
d. Managers often share decisions.
Q. Max Weber, a German sociologist, showed particular concern for
a. social structures
b. flexible structures
c. bureaucratic structures
d. personalised structures
Q. In the context of decision making, which of the following best describes a heuristic?
a. A rule that a person relies upon to assess or categorise choices.
b. One of many personal learned rules that a person applies in the process of decision making.
c. A fixed set of internal rules that a person uses when making a decision.
d. An attitude that prefers to look at a question as a whole.
Q. The company announcement: SUCCESFUL SALE OF PLANT: 75 PER CENT OF 1,000 JOBS TO BE SAVED! The local newspaper headline: 250 JOBS TO GO AT PROCESSING PLANT What is illustrated here?
a. Availability heuristic
b. Judgemental bias
c. Overconfidence
d. Framing error
Q. The jackpot on a gaming machine has not 'dropped' for several weeks. Believing that the payout isimminent, a gambler feeds coins steadily to the machine. What does this behavior illustrate?
a. Escalation of commitment
b. A display of overconfidence
c. Decision making under uncertainty
d. Changing subjective probabilities
Q. Select the incorrect statement. Harrison and Pelletier argued that managers should learn to avoid ...
a. Treating decisions with uncertain outcomes as though they had predictable results
b. Treating non-programmed decisions as routine
c. Mixing routine and non-routine decisions.
d. Treating ad-hoc decisions as though they were everyday occurrences
Q. Which of the following is not an assumption of the classical decision model?
a. Problems are clearly defined.
b. Decision makers behave logically.
c. Evaluation criteria are drawn from objectives and the definition of the problem.
d. Choice is made once sufficient information on alternatives is available
Q. Which of the following was not given by Janis as a symptom of groupthink?
a. Pressure to conform
b. An awareness of vulnerability
c. Negative stereotypes of outside opponents
d. An illusion of unanimity
Q. Stoner and others have shown how groups can make decisions that are much less, or much more,cautious that any member would take alone. What are these changes called?
a. Diffusion of responsibility
b. Risky and cautious shift
c. Polarisation
d. Decision arrangement