Question

Which of the following statements is true regarding the effects of moods and emotions on decision making?

a. Moods and emotions have no direct influence on decision making.
b. People in good moods are less likely than others to use heuristics to make decisions.
c. Positive emotions tend to diminish problem-solving skills and analytical skills.
d. People with positive emotions are slower at processing information than depressed people.
e. Depressed people tend to weigh all possible options rather than the most likely ones.

Answer 1

The true statement about the impact of moods and emotions on decision making is that people in good moods are less likely to rely on heuristics. Emotions play a significant role in decision-making processes, as observed in behavioral economics, which accounts for how mental states shape our decisions.

Step-by-step explanation:

The statement that is true regarding the effects of moods and emotions on decision making is that people in good moods are less likely than others to use heuristics to make decisions.

Emotions and moods do exert a significant influence on decision-making processes. According to behavioral economists, people in a positive state of mind, generated by good moods or emotions, tend to use more cognitive resources and rely less on heuristics, which are mental shortcuts or rules of thumb. Conversely, people in negative emotional states or experiencing depression might dwell on problems longer and weigh more options, often in a more pessimistic light.

Integrating insights from psychology into economics, behavioral economics seeks to understand how emotions and moods can lead to decisions that appear irrational, highlighting that feelings can significantly influence behavior and decision-making.