Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Jul 2014, 09:50

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

People often do not make decisions by using the basic

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Manager
Manager
User avatar
Joined: 07 Dec 2006
Posts: 169
Followers: 1

Kudos [?]: 18 [1] , given: 0

GMAT Tests User
People often do not make decisions by using the basic [#permalink] New post 26 Jan 2008, 08:46
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
People often do not make decisions by using the basic economic principle of rationally weighing all possibilities and then making the choice that can be expected to maximize benefits and minimize harm. Routinely, people process information in ways that are irrational in this sense.

Any of the following, if true, would provide evidence in support of the assertions above EXCEPT.

A) People tend to act on new information, independent of its perceived relative merit, rather than on information they already have.

B) People prefer a major risk taken voluntarily to a minor one that has been forced on them, even if they know that the voluntarily taken risk is statistically more dangerous.

C) People tend to take up potentially damaging habits even though they have clear evidence that their own peers as well as experts disapprove of such behavior.

D) People avoid situations in which they could become involved in accidents involving large numbers of people more than they do situation where single-victim accidents are possible, even though they realize that an accidents are possible, even though they realize that an accident is more likely in the latter situations than in the former.

E) People usually give more weight to a physician’ opinion about the best treatment for a disease than they do to the opinion of a neighbor if they realize that the neighbor is not an expert in disease treatment.
1 KUDOS received
Director
Director
User avatar
Joined: 14 Oct 2007
Posts: 759
Location: Oxford
Schools: Oxford'10
Followers: 13

Kudos [?]: 174 [1] , given: 8

GMAT Tests User
Re: CR - Basic economic principle of rationale [#permalink] New post 26 Jan 2008, 08:52
1
This post received
KUDOS
okay so we are trying to find out a logical action (the one that reduces harm and maximises returns based on all information at hand). 4 out of 5 below will be illogical.

GHIBI wrote:
People often do not make decisions by using the basic economic principle of rationally weighing all possibilities and then making the choice that can be expected to maximize benefits and minimize harm. Routinely, people process information in ways that are irrational in this sense.

Any of the following, if true, would provide evidence in support of the assertions above EXCEPT.

A) People tend to act on new information, independent of its perceived relative merit, rather than on information they already have. illogical, they know less about new information yet they act on it. This is risky.

B) People prefer a major risk taken voluntarily to a minor one that has been forced on them, even if they know that the voluntarily taken risk is statistically more dangerous. prefer major risk = eliminate

C) People tend to take up potentially damaging habits even though they have clear evidence that their own peers as well as experts disapprove of such behavior. again, illogical to take up damaging habits if consequences are known

D) People avoid situations in which they could become involved in accidents involving large numbers of people more than they do situation where single-victim accidents are possible, even though they realize that an accidents are possible, even though they realize that an accident is more likely in the latter situations than in the former. they know that the accident is likely to happen i nthe latter, still they go for it..eliminate

E) People usually give more weight to a physician’ opinion about the best treatment for a disease than they do to the opinion of a neighbor if they realize that the neighbor is not an expert in disease treatmentthey listen to a doctor over a non doctor neighbour. good logical choice...lets stick with this shall we.




E
Director
Director
avatar
Joined: 30 Jun 2007
Posts: 793
Followers: 1

Kudos [?]: 102 [0], given: 0

GMAT Tests User
Re: CR - Basic economic principle of rationale [#permalink] New post 26 Jan 2008, 20:35
Conclusion: People process information in an irrational sense.

A) People tend to act on new information, independent of its perceived relative merit, rather than on information they already have. [Strengthens the conclusion – Eliminate it]

B) People prefer a major risk taken voluntarily to a minor one that has been forced on them, even if they know that the voluntarily taken risk is statistically more dangerous. [Strengthens the conclusion – Eliminate it]

C) People tend to take up potentially damaging habits even though they have clear evidence that their own peers as well as experts disapprove of such behavior. [Strengthens the conclusion – Eliminate it]

D) People avoid situations in which they could become involved in accidents involving large numbers of people more than they do situation where single-victim accidents are possible, even though they realize that an accidents are possible, even though they realize that an accident is more likely in the latter situations than in the former. [Strengthens the conclusion – Eliminate it]

E) People usually give more weight to a physician’ opinion about the best treatment for a disease than they do to the opinion of a neighbor if they realize that the neighbor is not an expert in disease treatment.[Weakens the conclusion – Hold it]

Answer: E
Manager
Manager
avatar
Joined: 21 Dec 2007
Posts: 99
Followers: 1

Kudos [?]: 14 [0], given: 0

Re: CR - Basic economic principle of rationale [#permalink] New post 27 Jan 2008, 03:18
clear E
Re: CR - Basic economic principle of rationale   [#permalink] 27 Jan 2008, 03:18
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Decisions to make ? mehul88 1 04 Jun 2012, 10:22
1 making the decision rsp33 16 06 Jan 2009, 07:03
It is often said that people should be rewarded for doing a mailtheguru 7 12 Aug 2006, 16:29
It is often said that people should be rewarded for doing a WinWinMBA 5 11 May 2005, 15:06
It is often said that people should be rewarded for doing a crackgmat3 4 06 Oct 2004, 19:51
Display posts from previous: Sort by

People often do not make decisions by using the basic

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.