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Read the paragraph and answer the questions that follow.

Are people ___ (i) ___ or even typically, guided by reason, rather than, say, by passion or impulse ? If the norms of rational behaviour are not followed by people in their actual behaviour, how can we seek the same answer to two rather different questions : what would be rational for a person to do ? And what would the person actually do ? Shouldn't the economists who make such double use of maximisation - whether through explicit reasoning ___ (ii) ___ by implicit presumption - be invited to apply their minds to this ?

A number of economists have indeed paid attention to systematic departures from rationality in actual choices made by people. One argument that has been invoked, in a line of reasoning proposed by Herbert Simon, goes by the name of bounded rationality. It concerns the possibility that people may not, in all cases, look for fully ___ (iii) ___ choices because of their inability to be sufficiently focussed. There is considerable evidence, powerfully presented, for example, ___ (iv) ___ Kahneman, Slovic and Tversky, that people may fail to understand adequately the nature of the uncertainty.

Pick the most appropriate word to fill (iii) in the given passage :

Solution

Correct Option: 1
OptionExplanation
Option 1: rational✔️ Correct – adjective describing the type of choices (logical or reasoned choices).
Option 2: rationale❌ Noun – means "reason" or "justification", not suitable before "choices".
Option 3: rationally❌ Adverb – can't be used to describe a noun like "choices".
Option 4: rationality❌ Noun – refers to the state of being rational; doesn’t fit before "choices".

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