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12 Dec 2021, 23:00
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Question 1
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
73% (02:52) correct
27%
(03:36) wrong
based on 91
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
69% (01:09) correct 31%
(01:21) wrong
based on 91
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
64% (00:53) correct 36%
(01:00) wrong
based on 91
sessions
History
Date
Time
Result
Not Attempted Yet
Question 4
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
32% (01:19) correct 68%
(01:22) wrong
based on 95
sessions
History
Date
Time
Result
Not Attempted Yet
Researchers criticize the transaction cost economics (TCE) paradigm for overgeneralizing the assumption of opportunism as part of human nature. However, some suggest that individualists have a higher opportunistic propensity in intra-group transactions, and collectivists in inter-group transactions. This cultural specification of opportunism helps TCE to accommodate more effectively some criticisms and more realistically deal with problems of economic organization in today's global economy. Transaction cost economics was first proposed by Coase and later popularized by Williamson. One of its key building blocks is the assumption of opportunism, because individuals, as Williamson claims, "will not reliably self-enforce promises but will defect from the letter and spirit of an agreement when it suits their purposes". Since, evidently, not all economic players are likely to be opportunistic, such a reliance on the assumption of opportunism has resulted in a torrent of criticisms, calling it dangerous, unhealthy, bad for practice, and an ethereal hand for organizational researchers. A primary reason TCE has provoked such a debate is precisely because it is centered on the assumption of opportunism, which touches on a fundamental question of human nature.
To further develop this paradigm it is necessary to respond to the criticisms by clarifying and strengthening this important assumption. To be sure, TCE scholars never assumed that all (or most) individuals are likely to be opportunistic all (or most of) the time - a clearly indefensible position. Instead, most individuals are assumed to be "engaged in business-as-usual, with little or no thought to opportunism, most of the time". However, TCE suggests that it is the inability to differentiate opportunists, who may be a minority, from non-opportunists ex-ante that necessitates the assumption of opportunism. TCE’s critics, on the other hand, do not suggest that opportunism does not exist; rather, they caution against an over-reliance on the opportunism assumption because it may not be realistic to hold this assumption constant across individuals and organizations around the world. In order to make further theoretical progress, researchers must tackle the harder and more interesting issues of what kinds of individuals are likely to be opportunists, under what circumstances, and to what extent. Such an improved understanding of opportunism is important in today's increasingly global economy, in which economic players from different backgrounds routinely interact with each other.
To further develop this paradigm it is necessary to respond to the criticisms by clarifying and strengthening this important assumption. To be sure, TCE scholars never assumed that all (or most) individuals are likely to be opportunistic all (or most of) the time - a clearly indefensible position. Instead, most individuals are assumed to be "engaged in business-as-usual, with little or no thought to opportunism, most of the time". However, TCE suggests that it is the inability to differentiate opportunists, who may be a minority, from non-opportunists ex-ante that necessitates the assumption of opportunism. TCE’s critics, on the other hand, do not suggest that opportunism does not exist; rather, they caution against an over-reliance on the opportunism assumption because it may not be realistic to hold this assumption constant across individuals and organizations around the world. In order to make further theoretical progress, researchers must tackle the harder and more interesting issues of what kinds of individuals are likely to be opportunists, under what circumstances, and to what extent. Such an improved understanding of opportunism is important in today's increasingly global economy, in which economic players from different backgrounds routinely interact with each other.
1. In the passage, the author is primarily concerned with doing which of the following?
(A) Comparing two different approaches to a problem
(B) Present a criticism of an assumption and suggesting how to clarify it
(C) Describing a problem and proposing a solution
(D) Presenting data and drawing conclusions from the data
(E) Comparing two different analyses of a current situation
(A) Comparing two different approaches to a problem
(B) Present a criticism of an assumption and suggesting how to clarify it
(C) Describing a problem and proposing a solution
(D) Presenting data and drawing conclusions from the data
(E) Comparing two different analyses of a current situation
2. It can be inferred from the passage that which of the following is true of TCE?
(A) All economic players are likely to be opportunistic
(B) The majority of economic players are opportunistic
(C) The majority of human beings are opportunistic
(D) Not all opportunists are opportunistic under the same circumstances
(E) TCE has provoked such a debate because it is centered on the assumption of fundamentalism
(A) All economic players are likely to be opportunistic
(B) The majority of economic players are opportunistic
(C) The majority of human beings are opportunistic
(D) Not all opportunists are opportunistic under the same circumstances
(E) TCE has provoked such a debate because it is centered on the assumption of fundamentalism
3. Which of the following would most logically be the topic of the paragraph immediately following the passage?
(A) Specific ways to determine what kinds of individuals are likely to be opportunists, under what circumstances, and to what extent
(B) The contributions of TCE to economic theory
(C) Ways in which opportunists take advantage of unsuspecting businessmen
(D) Nontraditional methods of testing individuals to find out if they are opportunists
(E) The centrality of TSE to the position of opportunists in the business world
(A) Specific ways to determine what kinds of individuals are likely to be opportunists, under what circumstances, and to what extent
(B) The contributions of TCE to economic theory
(C) Ways in which opportunists take advantage of unsuspecting businessmen
(D) Nontraditional methods of testing individuals to find out if they are opportunists
(E) The centrality of TSE to the position of opportunists in the business world
4. The quotation in lines [Highlighted] is most probably used to
(A) counter a position that the author of the passage believes is correct
(B) counter a position that the author of the passage believes is incorrect
(C) elucidate a term
(D) point out a paradox
(E) present a historical maxim
(A) counter a position that the author of the passage believes is correct
(B) counter a position that the author of the passage believes is incorrect
(C) elucidate a term
(D) point out a paradox
(E) present a historical maxim
Source: Reading Comprehension Practice (Docs)
02 Jan 2022, 07:02
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Explanation
4. The quotation in lines [Highlighted] is most probably used to
Explanation
Read a few sentences before and after the related text for specific detail questions. Here is what we need to read to understand completely what's going on in the passage.
Transaction cost economics was first proposed by Coase and later popularized by Williamson. One of its key building blocks is the assumption of opportunism, because individuals, as Williamson claims, "will not reliably self-enforce promises but will defect from the letter and spirit of an agreement when it suits their purposes". Since, evidently, not all economic players are likely to be opportunistic, such a reliance on the assumption of opportunism has resulted in a torrent of criticisms, calling it dangerous, unhealthy, bad for practice, and an ethereal hand for organizational researchers.
I would like to read the complete above part and pay attention to the bold text above; it reflects that author is presenting some facts and not giving his opinion.
Now read the answer choices one by one.
(A) counter a position that the author of the passage believes is correct
This choice states that the author has provided their opinion for something they are not agree with, Hence distorting the picture.
(B) counter a position that the author of the passage believes is incorrect
This is a trap! The author has written something countering something, but that is not the authors' own belief; instead, they present some facts.
(C) elucidate a term
Correct! Because the author has presented and explained a fact. The quotation is most likely used to explain what is meant by the term opportunism.
(D) point out a paradox
Same as (A) incorrect.
(E) present a historical maxim
Maxim?? really?? we don't know according to the passage, this option trying to inject something alien.
Answer: C
Explanation
Read a few sentences before and after the related text for specific detail questions. Here is what we need to read to understand completely what's going on in the passage.
Transaction cost economics was first proposed by Coase and later popularized by Williamson. One of its key building blocks is the assumption of opportunism, because individuals, as Williamson claims, "will not reliably self-enforce promises but will defect from the letter and spirit of an agreement when it suits their purposes". Since, evidently, not all economic players are likely to be opportunistic, such a reliance on the assumption of opportunism has resulted in a torrent of criticisms, calling it dangerous, unhealthy, bad for practice, and an ethereal hand for organizational researchers.
I would like to read the complete above part and pay attention to the bold text above; it reflects that author is presenting some facts and not giving his opinion.
Now read the answer choices one by one.
(A) counter a position that the author of the passage believes is correct
This choice states that the author has provided their opinion for something they are not agree with, Hence distorting the picture.
(B) counter a position that the author of the passage believes is incorrect
This is a trap! The author has written something countering something, but that is not the authors' own belief; instead, they present some facts.
(C) elucidate a term
Correct! Because the author has presented and explained a fact. The quotation is most likely used to explain what is meant by the term opportunism.
(D) point out a paradox
Same as (A) incorrect.
(E) present a historical maxim
Maxim?? really?? we don't know according to the passage, this option trying to inject something alien.
Answer: C
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