JIPMAT 2024
VA
Grammar
Easy
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 (ii) in the given passage :
Pick the most appropriate word to fill (ii) in the given passage :
Correct Option: 2
- methodological - Incorrect. "Methodological"relates to the methods used in research or systematic ways of doing something. While relevant to research settings, it doesn't directly address the nature of how people perceive or understand uncertainty.
- cognitive - Correct. "Cognitive"refers to the mental processes involved in acquiring knowledge and understanding through thought, experience, and the senses. It is the best fit here, as Kahneman, Slovic, and Tversky's research often focuses on cognitive biases and processes affecting decision-making and the understanding of uncertainty.
- behavioral - Incorrect. While their research does involve behavioral economics, "behavioral"emphasizes actions more than the mental processing or understanding of those actions. It’s not the best fit for discussing the understanding of the nature of uncertainty.
- theoretical - Incorrect. "Theoretical"pertains to a theory or theories, which is more about abstract concepts and less about the practical cognitive processes involved in understanding uncertainty.
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