The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question. Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura. Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions…. It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—“preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can’t afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference. Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines…. This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli. Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller’s account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.
The author critiques Schiller’s approach to behavioural economics for
linking emotions and rational behaviour without considering the mediation of social institutions.
The last paragraph says Shiller connects perceptions of narratives to changes in behaviour and then to social outcomes.
The author's criticism is that this cycle was once mediated by institutions such as political parties, lobby groups and media, yet institutions have been stripped from Shiller's account, leaving only a bare dynamic of emotions and economics without politics.
So the critique is that Shiller links emotions and behaviour without considering the mediation of social institutions.
Hence, linking emotions and rational behaviour without considering the mediation of social institutions.
Similar Questions
Zombie cells may contribute to age-related chronic inflammation: this finding could help scientists understand more about the aging process and why the immune system becomes less effective as we get older. Zombie or “senescent” cells are damaged cells that can no longer divide and grow like normal cells. Scientists think that these cells can contribute to chronic health problems when they accumulate in the body. In younger people, the immune system is more effective at clearing senescent cells from the body through a process called apoptosis, but as we age this process becomes less efficient. As a result, there is an accumulation of senescent cells in different organs in the body, either through increased production or reduced clearance by the immune system. The zombie cells continue to use energy though they do not divide, and often secrete chemicals that cause inflammation, which if persistent for longer periods of time can damage healthy cells leading to chronic diseases.
Identify the odd sentence out and key in the number of that sentence as your answer.
The last paragraph of the passage refers to “middle-class, white, professional men”. Which one of the following qualities best describes the connection among them?
Study the following sets of concepts and identify the set that is conceptually closest to the concerns and arguments of the passage.
According to the passage, who or what was an “alienist”?
“Conversely, when a defendant struck officials as unlike themselves, whether by dint of disease, gender, confession, or race, the precariousness of judgments about mental state was exposed.” Which one of the following best describes the use of the word “confession” in this sentence?
According to the incentive or moral hazard argument, which one of the designs below is most consistent with the claim that some inequality can raise growth?
Which one of the options below best summarises the passage?
The primary function of the three-part case for a positive income inequality–economic growth link in the first half of the passage is to show that:
The passage refers to "democratization". Choose the one option below that comes closest to the opposite of this process.
Important Questions from Non Grammar
- In formulating Principle VI (a), the ILC clarified the term "waging of a war of aggression" because:
- The author attributes the growing public frustration with the UN primarily to which pair of continuous failures?
- A primary point of divergence between the US Conservative position and the Secretary-General's Conservative position on security matters, according to the summary is:
- According to the critique's conclusion, the immediate, insurmountable barrier preventing the implementation of any reform, major or minor, is:
- The Secretary-General's 'Agenda for Peace' proposed a specific military capability intended to address the gap between traditional peace-keeping and full military action. This proposed unit was explicitly characterized by the summary as being:
