Question

Which of the following most accurately represents the author's criticism of 'Homo economicus'?

• A. It gives an inaccurate picture of consumer behaviour in real economic transactions.
• B. The ideal person who makes choices in conservative economic models is, in fact, the opposite of 'homo economicus'.
• C. It is nowhere close to the unpredictable consumer in real economic situations.
• D. It is the economists' mythical Everyman.

Hint:

When asked to identify criticisms or evaluations, look for direct phrases in the passage that characterize something as unrealistic or mythical.

Answer 1

The Correct Option is D

The passage opens by quoting Daniel McFadden who critiques the concept of 'Homo economicus' as an unrealistic and mythical representation of consumers in economic theory. It states that Homo economicus is "sovereign in tastes, steely-eyed... relentless in maximisation of happiness," a description which McFadden says is unlike any real person. He calls Homo economicus a “rare species.”
This clearly positions 'Homo economicus' as a theoretical construct, not grounded in real human behavior, thus referring to it as economists’ "mythical Everyman."