IBPS PO General Awareness: Decision Making questions with solutions

Q1. A decision to enter a new market, despite being profitable in the current market, is an example of which type of decision?

1. Creative decision
2. Opportunity decisions
3. Active decision
4. Passive decision

Answer: Opportunity decisions

An opportunity decision is made when a person or firm chooses to pursue a new favorable possibility, such as entering a new market. It is not merely a response to a problem, so it is different from passive or corrective decisions.

Q2. Which of the following models of decision-making follows a rule of thumb?

1. Economic man model
2. Administrative man model
3. Garbage can model
4. Retrospective man model

Answer: Administrative man model

The administrative man model, proposed by Herbert Simon, assumes bounded rationality and uses heuristics or rules of thumb to make decisions. Unlike the economic man model, it does not assume perfect information or optimal choice.

Q3. Identify the type of decision where the decision is difficult to make and the outcome certainty is low.

1. Judgmental Decisions
2. Mechanistic Decisions
3. Adaptive Decisions
4. Analytical Decisions

Answer: Adaptive Decisions

Adaptive decisions are made in uncertain and changing conditions, where the outcome is not highly certain. Mechanistic decisions are routine and analytical decisions are more structured. Hence, adaptive decisions fit best.

Q4. Direction: In the question below, a statement is followed by two courses of action numbered I and II. Assume everything in the statement to be true and decide which of the suggested courses of action logically follows. The Cabinet has declared human-wildlife conflict a state-specific disaster. The decision comes in the wake of increasing deaths, injuries, and crop and property loss caused by recurrent wildlife incursions into human habitations abutting forests in the state. I. The Cabinet should create a committee to alleviate the threat of wildlife to humans, especially plantation and tribal communities. II. The government should form neighborhood watch groups to increase grassroots vigilance in localities plagued by wildlife ingress.

1. Only I follow.
2. Only II follows.
3. Both I and II follow.
4. Either I or II follows.

Answer: Both I and II follow.

The statement describes a serious recurring problem affecting people and property, so both preventive coordination and local vigilance are sensible responses. A committee can help plan mitigation measures, and neighborhood watch groups can improve early warning and awareness. Hence, both courses of action follow.