Question

Which of the following statements would be the closest to the arguments in the passage?

• A. Individuals are more rational than firms.
• B. Firms are rational.
• C. Firms are more rational than individuals.
• D. Firms are, most of the times, more rational than individuals.
• E. Market behavior of psychophysical goods would be the same as that of physical goods.
• A. To prove that molecules are elastic.
• B. To highlight that we should not compare apples and oranges.
• C. To hint that only very good students Physics taught by Rutherford.
• D. To equate beer with little hard elastic balls.
• J. To state that Mechanics is more amenable to application of statistics than gasses.
• A. 1 and 2
• B. 2 and 3
• C. 1 and 3
• D. 1, 2 and 3
• O. None of these

Answer 1

The Correct Option is D

Step 1: Recall key passage point.
The passage explains the assumption of rationality in markets and notes that much beer is bought by individuals rather than firms. It highlights that firms can be expected to be more rational than individuals. This is central to the argument.
Step 2: Eliminate wrong options.
(A) “Individuals are more rational than firms.” — directly opposite to the passage claim.
(B) “Firms are rational.” — too simplistic; does not capture the comparison with individuals.
(C) “Firms are more rational than individuals.” — close, but absolute. The passage implies “most of the time” or “generally,” not universally. Partially correct, but incomplete.
(E) “Market behavior of psychophysical goods would be the same as that of physical goods.” — not supported; the passage contrasts them via advertising influence.
Step 3: Best match.
(D) “Firms are, most of the times, more rational than individuals.” — This carefully reflects the nuance in the passage: firms usually behave more rationally than individual consumers.
\[ \boxed{\text{Firms are, most of the times, more rational than individuals.}} \]

Answer 2

Step 1: Recall the reference to Rutherford.
The passage refers to Rutherford training students to disprove assumptions about molecules being “hard elastic balls,” but notes this does not undermine statistical mechanics because the deviations are small and not systematic.
Step 2: Interpret the purpose.
The author uses Rutherford’s example to show that just because assumptions can be disproved in detail, it does not invalidate the broader framework (statistical mechanics for gases, rationality for markets). This is essentially about avoiding false comparisons or mismatched standards.
Step 3: Eliminate distractors.
(A) Wrong — the author does not aim to prove elasticity of molecules.
(C) Wrong — not about Rutherford’s students.
(D) Wrong — beer is not equated to elastic balls; analogy is about modeling assumptions.
(E) Wrong — the passage never claims mechanics is more statistical than gases.
Step 4: Correct option.
(B) fits best: The author highlights that disproof of simplifying assumptions does not necessarily invalidate the explanatory model, i.e., avoid comparing apples and oranges.
\[ \boxed{\text{To highlight that we should not compare apples and oranges.}} \]

Answer 3

Step 1: Recall the passage definition.
The passage referred to “psychophysically identical goods such as beer,” where the perception of the good is influenced by advertising and psychological factors, not just its physical properties.
Step 2: Compare with given options.
- (1) Concrete — purely physical, not subject to psychophysical advertising effects.
- (2) Car — while cars are advertised, in the passage the example was of identical goods (like beers), not complex differentiated products like cars.
- (3) Mobile Phone — also differentiated by physical features, not identical goods altered only by perception/advertising.
Step 3: Conclusion.
Since none of the given items match the author’s idea of psychophysical goods (which are identical in nature but valued differently due to psychological/advertising effects), the correct choice is:
\[ \boxed{\text{None of these}} \]