Comprehension
Comprehension: 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.
Question: 1
We can infer from the passage that the term '‘homo economicus” refers to someone who
We can infer from the passage that the term '‘homo economicus” refers to someone who
Updated On: Nov 29, 2024
- believes in borrowing and collaborating with other disciplines in their work.
- maximises their opportunities based on nonmarket choices.
- makes rational decisions based on their own preferences.
- is not influenced by the preferences and choices of others.
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The Correct Option is C
Solution and Explanation
The term ”homo economicus” refers to an economic model of rational behavior. It describes an individual who always makes decisions by considering the utility of their actions and maximizing their personal benefit, often making decisions based solely on their preferences.
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Question: 2
“Times have changed for the once almighty discipline.” We can infer from this statement and the associated paragraph that the author is being
“Times have changed for the once almighty discipline.” We can infer from this statement and the associated paragraph that the author is being
Updated On: Nov 29, 2024
- sarcastic about how economists, who earlier shunned other disciplines, are now beginning to incorporate them in their analyses.
- critical of economists’ openly borrowing and collaborating across disciplines to explain how humans make decisions.
- disparaging of economists’ inability to precisely predict market behaviour, and are now borrowing from other disciplines to remedy this.
- judgemental about the ability of economic tools to accurately manage crises leading to the downfall of this lofty science.
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The Correct Option is A
Solution and Explanation
The author uses the phrase ”times have changed” sarcastically, referring to how economists, once closed off from other disciplines, are now becoming more open by incorporating ideas from fields such as psychology and history. The tone suggests a shift in the discipline, with economists now more willing to collaborate and learn from other perspectives.
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Question: 3
In the first paragraph the author is making the point that economists like Becker
In the first paragraph the author is making the point that economists like Becker
Updated On: Nov 29, 2024
- benefitted from the application of their principles and concepts to non-economic phenomena.
- used economics to analyse non-market behaviour, without incorporating perspectives from other areas of inquiry.
- tended to guard their discipline from poaching by academics from other subject areas.
- had begun to borrow concepts from other disciplines but were averse to the latter applying economic principles.
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The Correct Option is B
Solution and Explanation
The author points out that Becker applied economic methods to non-market phenomena, such as crime and domesticity, but did not borrow from other disciplines like anthropology or history. This indicates that Becker’s work was one-sided and did not integrate interdisciplinary perspectives.
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Question: 4
The author critiques Schiller’s approach to behavioural economics for
The author critiques Schiller’s approach to behavioural economics for
Updated On: Nov 29, 2024
- linking emotions and rational behaviour without considering the mediation of social institutions.
- denigrating the role of institutions while creating a link between behavioural economics and perceptions.
- relying excessively on storytelling as the main influence on the formation of perceptions.
- ignoring the marginal role that media and politics play in influencing people’s behaviour.
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The Correct Option is A
Solution and Explanation
The author critiques Schiller for ignoring the role of institutions in mediating the link between perceptions and behavior. Schiller’s approach oversimplifies the dynamic by focusing on emotions and economic behavior, without considering the vital role institutions like political parties, lobby groups, and media organizations play in shaping societal outcomes.
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Top Questions on Reading Comprehension
“Why do they pull down and do away with crooked streets, I wonder, which are my delight, and hurt no man living? Every day the wealthier nations are pulling down one or another in their capitals and their great towns: they do not know why they do it; neither do I. It ought to be enough, surely, to drive the great broad ways which commerce needs and which are the life-channels of a modern city, without destroying all history and all the humanity in between: the islands of the past.” (From Hilaire Belloc’s “The Crooked Streets”)
Based only on the information provided in the above passage, which one of the following statements is true?
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- “His life was divided between the books, his friends, and long walks. A solitary man, he worked at all hours without much method, and probably courted his fatal illness in this way. To his own name there is not much to show; but such was his liberality that he was continually helping others, and fruits of his erudition are widely scattered, and have gone to increase many a comparative stranger’s reputation.”
(From E.V. Lucas’s “A Funeral”)
Based only on the information provided in the above passage, which one of the following statements is true?- GATE CE - 2025
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- Read the excerpt from a Handicrafts Manual: ‘Advanced Knitting Techniques’ and answer the following questions by choosing the most appropriate answer.
THE FAIR ISLE METHOD: Fair Isle knitting is a traditional technique that involves using two or more colours of yarn in a single row to create intricate patterns and designs. This method requires careful tension management to ensure even stitches and prevent puckering. To begin, select your colours and cast on the desired number of stitches. As you knit, alternate between colours every few stitches, carrying the unused yarn along the back of the work. Mastering the Fair Isle technique allows you to create stunning visual effects in garments, accessories, and home textiles.
THE CONTINENTAL STYLE: The Continental knitting style, often referred to as “picking,” involves holding the yarn in the left hand while the right hand manipulates the needles. This method allows for greater speed and efficiency, particularly when working with complex patterns or multiple colours. To practice this style, start by casting on your stitches and using your left hand to tension the yarn. With each stitch, simply “pick” the yarn with your right needle, forming a quick and fluid motion. As you become comfortable with this technique, you may find that your overall knitting speed and comfort improve significantly.
THE SHORT-ROW TECHNIQUE: Short-row knitting is an advanced technique that allows for the creation of shaped garments, such as sleeves and shoulders, without the need for complex shaping. To make a sleeve using this technique, begin by casting on the required number of stitches. Work a portion of the row, then turn your work and return without completing the full row to create the “short rows” that shape the curves of the sleeve. To prevent holes at the turn, wrap the stitch before you turn your work. Repeat this process as needed to achieve the desired shaping and dimension of the sleeve. Once you have shaped the sleeve, you can then sew the side seams to connect the pieces of your garment and finally, complete the edges to ensure a clean finish. This method not only helps shape curves but also adds dimension to your piece, allowing you to enhance fit and style.- AILET BALLB (Hons.) - 2025
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- Read the following passage and answer the following questions by choosing the most appropriate answer.
The Story of Coffee
Coffee, a beloved beverage enjoyed by millions around the globe, has a rich and captivating history that spans centuries. The story of coffee begins in the ancient highlands of Ethiopia, where, according to legend, a goat herder named Kaldi discovered the stimulating effects of coffee beans. One day, Kaldi noticed his goats frolicking with unusual energy after eating red berries from a certain tree. Curious, he tried the berries himself and experienced a newfound alertness. This discovery soon spread to monasteries, where monks used it to stay awake during long hours of prayer. From Ethiopia, coffee cultivation and consumption spread to the Arabian Peninsula, particularly in Yemen, where the practice of roasting coffee beans and brewing the drink began to take shape. By the 15th century, coffee had become a popular beverage in the Islamic world, with coffee houses known as ‘qahveh khaneh’ emerging as social hubs for conversation, music, and intellectual exchange. These coffee houses became centers of culture and commerce, influencing the spread of coffee to Turkey and beyond, eventually reaching Europe. In Europe, coffee initially faced resistance from religious authorities who considered it a ‘Muslim drink’ and tried to ban it. However, its popularity persisted, and by the 17th century, coffee houses had sprung up in major European cities, becoming important gathering places for artists, writers, and thinkers. The stimulating effects of coffee were embraced during the Age of Enlightenment, where it was seen as a catalyst for intellectual discussion and innovation. The journey of coffee continued with the establishment of colonial plantations in tropical regions such as the Caribbean, Central and South America, and Southeast Asia. These plantations fuelled the global demand for coffee, transforming it from a regional specialty to a major commodity. The industrial revolution further accelerated coffee production and consumption, leading to innovations in coffee brewing methods and the development of instant coffee. In the modern era, coffee has evolved into a deeply ingrained part of daily life for people worldwide. Its cultural significance spans from the bustling cafes of Paris to the quiet coffee farms of Colombia. Today, coffee remains not only a popular beverage but also a symbol of social interaction, productivity, and enjoyment. Whether sipped slowly over a conversation with friends or grabbed hastily on the way to work, the story of coffee continues to unfold, intertwining with the histories and cultures of countless societies across the globe.- AILET BALLB (Hons.) - 2025
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- Read the following passage and answer the following questions by choosing the most appropriate answer.
The intricate world of modern manufacturing is a web of precision and innovation, where even the tiniest components play a pivotal role. One such element, often overlooked but crucial, is the sub-subpart. Whether it’s a carpenter fashioning a bespoke piece of furniture or an automobile engineer designing the next generation of vehicles, the creation of sub-subparts is a fundamental process that demands meticulous craftsmanship and cutting-edge technology. In the realm of woodworking, carpenters frequently work with sub-subparts like dowels, screws, and hinges. These minute components may appear insignificant, yet they determine the structural integrity and functionality of the final product. Crafting a dowel, for instance, begins with selecting the appropriate wood species, followed by precision cutting and shaping. The result is a perfectly cylindrical, sturdy sub-subpart that seamlessly joins two larger pieces of wood. The advent of computer-aided design (CAD) and computer numerical control (CNC) machines has revolutionised this process, enabling carpenters to create sub-subparts with unparalleled precision.
Similarly, in the automobile industry, sub-subparts are the unsung heroes of vehicle construction. Take, for instance, the ball bearing—a minuscule but essential component in the wheels and transmission system. Manufacturing these precision-engineered spheres involves intricate processes like forging, heat treatment, and precision machining. Modern techniques such as laser cutting and 3D printing have streamlined production, ensuring that these sub-subparts meet the demanding standards of the automotive sector. The manufacturing of sub-subparts is a testament to the convergence of traditional craftsmanship and cutting-edge technology. Whether it’s a carpenter’s workshop or a high-tech automotive assembly line, the quest for perfection in sub-subpart creation remains unwavering. The attention to detail and precision required in these processes is a testament to the dedication of craftsmen and engineers alike.
To conclude, while sub-subparts may be small in size, their significance in various industries cannot be overstated. Whether it’s a carpenter working on a timeless piece of furniture or an automotive engineer striving for superior performance, the manufacturing of sub-subparts is a crucial step towards achieving excellence in craftsmanship and technology. This fusion of tradition and innovation accentuates the essence of modern manufacturing.- AILET BALLB (Hons.) - 2025
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