Question

When Helena says in the video that she has to make decisions as though she’s 25 because otherwise she’ll be "way too conservative and we’ll be dead in the water," she is describing a way of countering _________ .

a. the escalation of commitment
b. the status quo bias
c.initial impressions
d. risk propensity

Answer 1

The correct answer is b. the status quo bias .

Step-by-step explanation:

The status quo bias is an emotional bias; A preference for the current situation. The current status (or status quo) is taken as a reference point, and any change with respect to that point is perceived as a loss.

Cognitive biases, such as status quo bias, are well studied by behavioral economics, a discipline that combines psychology and economics and challenges standard economic theory, proposing that beings Humans are not rational agents in our decision making, but we have many biases that make us make irrational decisions.