Question

Based on the studies of human decision making, which of the following statements is correct?

Most people are not bothered by perceived unfairness as long as they receive some compensation, even if the amount is very small.

Most people are very willing to change their minds.

Many people’s preferences are inconsistent over time.

All of the above are correct.

Answer 1

Answer- The correct answer is All of the above are correct. Decision making refers to a process where humans select one option or one alternative among the other alternatives available. Such an alternative is chosen based on some analysis of benefits and cost or risks. It is also based on how one alternative can add more value or be more satisfying in fulfilling the demand. Human decision can often change when they have more information available about a certain matter with which they are dealing. Many people who work in mines or jungles, forests or any danger area receive some payment for working there. But the amount received is usually small as compared to the risk undertaken. Humans go for such decisions as they consider the additional income as an important part of total income that would uplift their living standards. Also people change often change their minds once they have made a decision as at that point of time there might be some additional information available which makes they re-analyse or if they feel that previous analysis was incorrect. Many people prefer change and hence don’t consider the fact of the decision taken before.