Multiple Choice Quiz

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1		Bounded rationality is defined as the
			A)	degree of irrationality.
			B)	ratio of the cognitive capacities of a decision maker and the complexity of the problem.
			C)	limited reasoning capability of humans.
			D)	psychological tendency of humans to downplay bad news.
2		A partitioning approach captures mistakes by
			A)	the incompleteness of contracts.
			B)	type I versus type II errors.
			C)	(sub)sets consisting of more than one element.
			D)	exogenous shocks.
3		A Moore environment
			A)	consists of four cells.
			B)	consists of eight cells.
			C)	reflects a situation in which the costs of developing hardware decrease fast.
			D)	reflects a situation in which James Bond excels.
4		A transition rule specifies the next state of a cell by
			A)	the competition between neighboring cells.
			B)	a trade-off between the past and the future.
			C)	its fitness.
			D)	its current state and the local environment.
5		Self organization refers to the phenomenon that
			A)	local units interact without a leader.
			B)	people take their own responsibility when they are not directed by a boss.
			C)	computer simulations show surprisingly complex patterns.
			D)	computer simulations show a strong tendency towards segregation in populations.
6		The application of insights from evolutionary biology to problems of cognition is based on a simple idea:
			A)	form follows function.
			B)	nature is more important than nurture.
			C)	strategy follows structure.
			D)	investment provides commitment.
7		Population ecologists emphasize
			A)	cognition and adaptation processes.
			B)	interacting units in populations.
			C)	property rights and path dependence.
			D)	competition and selection.
8		An architecture is defined as
			A)	the structure of information in an organization.
			B)	a way to align conflicting interests in an organization.
			C)	a decision procedure that aggregates local decisions into an organizational decision.
			D)	the design of hardware for various software applications.
9		A type II error is
			A)	more important than a type I error.
			B)	more likely in organizations than in markets.
			C)	rejecting a good project.
			D)	accepting a bad project.
10		In comparison to a hierarchy, a polyarchy is relatively good at
			A)	preventing type I errors.
			B)	preventing type II errors.
			C)	mimicking a command economy.
			D)	limiting bureaucracy.