How to Make Tough Decisions: Crash Course Business - Soft Skills

The video explores decision-making processes, highlighting psychological phenomena like the sunk cost fallacy, loss aversion, and anchoring. It emphasizes understanding opportunity costs and provides strategies for effective decision-making, such as using pros and cons lists and weighted scorecards. The video also discusses risk, loss aversion, and ethical considerations, using the Enron scandal as a case study. It concludes by addressing the sunk cost fallacy, planning fallacy, and the importance of learning from past decisions.

What is the main focus of the introduction section?

• The importance of setting goals

• The benefits of adult decision-making

• How to invest money wisely

• The impact of psychological phenomena on decision-making

What does the concept of opportunity cost imply?

• Opportunity costs are irrelevant in decision-making

• All opportunities have the same value

• Every decision is free of cost

• Choosing one option means giving up another

Which strategy is NOT mentioned for effective decision-making?

• Seeking advice from others

• Making a list of pros and cons

• Creating a weighted scorecard

• Flipping a coin

What is confirmation bias?

• The tendency to seek out new information

• The tendency to ignore evidence that contradicts our beliefs

• The tendency to make decisions quickly

• The tendency to overestimate opportunity costs

How does loss aversion affect decision-making?

• It makes losses feel more significant than gains

• It makes us more likely to take risks

• It makes us focus on potential gains

• It encourages us to ignore opportunity costs

What is motivated blindness?

• Avoiding difficult decisions

• Ignoring unethical behavior because it benefits us

• Being unaware of our own biases

• Making decisions based on emotions

What is the sunk cost fallacy?

• The tendency to underestimate the time needed for a task

• The belief that opportunity costs are irrelevant

• The belief that past investments justify continued investment

• The idea that all costs are recoverable

What is the planning fallacy?

• Underestimating the time required to complete a task

• Overestimating the costs of a decision

• Overestimating the benefits of a decision

• Ignoring the potential for failure

Why is it important to consider ethical implications in decision-making?

• To ensure decisions are made quickly

• To avoid motivated blindness

• To increase financial gains

• To reduce opportunity costs

What should you focus on when learning from past decisions?

• The outcome of the decision

• The steps taken and research done

• The opinions of others

• The time taken to make the decision