BA 300 - Austin – Final Exam Questions And
Answers
Ethics The principles norms and standards of conduct governing an individual or group.
Cognitive Bias - Confirmation Trap When gathering facts we tend to stop looking for
information once we reached an answer that supports what we think is true or right. Think about
all the consequences, do not reduce them. Think about the consequences for yourself and for
others.
Cognitive Bias - Consequences as Risk - Illusion of Optimism People tend to overestimate
the likelihood of good future events and underestimate the bad. Ex) All newlyweds think their
love will be ever lasting when the fact is that about half of marriages end in divorce. Or Banks
before the market crash.
Cognitive Bias - Consequences as Risk - Illusion of Control People generally believe that
they are less susceptible to risk than others. They believe that they have everything under control,
and therefore may ignore risks which leads to ignoring the consequences of those risks.
, BA 300 - Austin – Final Exam Questions And
Answers
Cognitive Bias - Escalation of Commitment Sticking with a bad decision over a long
period of time because of a feeling or need to stick with it. Take a step back and make a rational
decision.
Cognitive Bias - Illusion of Superiority or Morality People tend to believe that they are
more ethical than the average person. Ex) Doctors taking gifts from sales people. Banks lending
bad loans because they are sure they are contributing to the American dream.
Implicit Association Test (IAT) A test that revealed most people tend to prefer young over
old, straight over gay, able over disabled and white over black (race IAT).
Moral Disengagement Moral Justification - unethical behavior becomes okay because it
contributes to some socially valued outcome
Advantageous Comparison - people compare their own behavior to one that is more wrong
therefore justifying theirs
Displacement of Responsibility - my boss made me do it
Diffusion of Responsibility - it's not my job or my team made the decision
Answers
Ethics The principles norms and standards of conduct governing an individual or group.
Cognitive Bias - Confirmation Trap When gathering facts we tend to stop looking for
information once we reached an answer that supports what we think is true or right. Think about
all the consequences, do not reduce them. Think about the consequences for yourself and for
others.
Cognitive Bias - Consequences as Risk - Illusion of Optimism People tend to overestimate
the likelihood of good future events and underestimate the bad. Ex) All newlyweds think their
love will be ever lasting when the fact is that about half of marriages end in divorce. Or Banks
before the market crash.
Cognitive Bias - Consequences as Risk - Illusion of Control People generally believe that
they are less susceptible to risk than others. They believe that they have everything under control,
and therefore may ignore risks which leads to ignoring the consequences of those risks.
, BA 300 - Austin – Final Exam Questions And
Answers
Cognitive Bias - Escalation of Commitment Sticking with a bad decision over a long
period of time because of a feeling or need to stick with it. Take a step back and make a rational
decision.
Cognitive Bias - Illusion of Superiority or Morality People tend to believe that they are
more ethical than the average person. Ex) Doctors taking gifts from sales people. Banks lending
bad loans because they are sure they are contributing to the American dream.
Implicit Association Test (IAT) A test that revealed most people tend to prefer young over
old, straight over gay, able over disabled and white over black (race IAT).
Moral Disengagement Moral Justification - unethical behavior becomes okay because it
contributes to some socially valued outcome
Advantageous Comparison - people compare their own behavior to one that is more wrong
therefore justifying theirs
Displacement of Responsibility - my boss made me do it
Diffusion of Responsibility - it's not my job or my team made the decision
