For many years, theoretical economists characterized humans as ration

Question

For many years, theoretical economists characterized humans as rational beings relentlessly bent on maximizing purely selfish reward. Results of an experimental economics study appear to contradict this view, however. In the “Ultimatum Game,” two subjects, who cannot exchange information, are placed in separate rooms. One is randomly chosen to propose how a sum of money, known to both, should be shared between them; only one offer, which must be accepted or rejected without negotiation, is allowed.

If, in fact, people are selfish and rational, then the proposer should offer the smallest possible share, while the responder should accept any offer, (20) no matter how small: after all, even  one dollar  is better than nothing. In numerous trials, however, two-thirds of the offers made were between 40 and 50 percent; only 4 percent were less than 20 percent. Among responders, more than half who were offered less than 20 percent rejected the offer. Behavior in the game did not appreciably depend on the players’ sex, age, or education. Nor did the amount of money involved play a significant role: for instance, in trials of the game that were conducted in Indonesia, the sum to be shared was as much as three times the subjects’ average monthly income, and still responders refused offers that they deemed too small.   1 
 1. The primary purpose of the passage is to 
 
A. provide evidence in support of the view that human beings are essentially rational and selfish
B. use a particular study to challenge the argument that the economic behavior of human beings may be motivated by factors other than selfishness
C. compare certain views about human nature held by theoretical economists with those held by experimental economists
D. describe a study that apparently challenges theoretical economists’ understanding of human economic behavior
E. suggest that researchers may have failed to take into account the impact of certain noneconomic factors in designing a study of human economic behavior

2 
 2. The passage implies that the results of the Ultimatum Game undermine theoretical economists’ characterization of human beings by 
 
A. demonstrating that most people are inclined to try to maximize their own advantage whenever possible
B. indicating that people who do not have the option of negotiating might behave more generously than do those who have the option of negotiating
C. illustrating how people’s economic behavior depends to some extent on how large a sum of money is involved
D. showing that most people instinctively place their own economic self-interest ahead of the interest of strangers
E. suggesting that people’s economic behavior might in part be motivated by factors other than selfishness

3 
 3. The author refers to the sum of one dollar ( Highlighted ) in order to 
 
A. question the notion that the amount of money involved significantly affected players’ behavior
B. provide an example of one of the rare offers made by proposers that was less than 20 percent
C. illustrate the rationality of accepting even a very small offer
D. suggest a reason that responders rejected offers that were less than 20 percent
E. challenge the conclusion that a selfish and rational proposer should offer a responder the smallest possible share

4 
 4. All of the following are expressly mentioned in the passage as factors that did not significantly affect players’ behavior EXCEPT the

A. players’ level of schooling
B. amount of money to be shared
C. ages of the players
D. players’ professions
E. genders of the players

anairamitch1804 · Accepted Answer

1)For many years, theoretical economists characterized humans as rational beings relentlessly bent on maximizing purely selfish reward. However, results of an experimental economics study appear to contradict this view. It is clear that the however signals a change between what was said before and after it: economists believe human beings are rational, however results of the study say otherwise, i.e. that humans are not rational. The passage then goes on to show that humans do not act rationally in the expriements: If, in fact, people are selfish and rational, then the proposer should offer the smallest possible share, while the responder should accept any offer, no matter how small: after all, even one dollar is better than nothing. In numerous trials, however, two-thirds of the offers made were between 40 and 50 percent; only 4 percent were less than 20 percent, further reinforcing this idea: that the study contradicts economists view. answer is D, which clearly describes what the passage is doing. 
2)"Behavior in the game did not appreciably depend on the players’ sex, age, or education. Nor did the amount of money involved play a significant role: for instance, in trials of the game that were conducted in Indonesia, the sum to be shared was as much as three times the subjects’ average monthly income, and still responders refused offers that they deemed too small". It implies that money does not play an important role by this we can safely eliminate Option C. Option A and D are out because of extreme answer choices. Option B does not make any sense. Left with option E which is correct answer choice.
3)"while the responder should accept any offer, no matter how small: after all, even one dollar is better than nothing". Option C clearly matches with this notion.
4)"Behavior in the game did not appreciably depend on the players’ sex, age, or education". As per this notion only option D is not mentioned in the passage.

Skywalker18 · Answer

Took 5 mins and 30 seconds, including 1 min 45 seconds to read the passage

1.The primary purpose of the passage is to
D.describe a study that apparently challenges theoretical economists’ understanding of human economic behavior- Correct - the passage describes a study by experimental economics about Ultimatum Game that challenges theoretical economists’ understanding of human economic behavior

2.The passage implies that the results of the Ultimatum Game undermine theoretical economists’ characterization of human beings by
E.suggesting that people’s economic behavior might in part be motivated by factors other than selfishness - If, in fact, people are selfish and rational, then the proposer should offer the smallest possible share , but the second paragraph tells that it was not the case

3.The author refers to the sum of one dollar (line 21) in order to
C. illustrate the rationality of accepting even a very small offer - "after all, even one dollar is better than nothing"

4.All of the following are expressly mentioned in the passage as factors that did not significantly affect players’ behavior EXCEPT the
Behavior in the game did not appreciably depend on the players’ sex, age, or education; Nor did the amount of money involved play a significant role
D. players’ professions

v1987 · Answer

abhimahna 
 Bunuel 
 GMATNinja 
 GMATNinja Two

1. The primary purpose of the passage is to

A. provide evidence in support of the view that human beings are essentially rational and selfish
B. use a particular study to challenge the argument that the economic behavior of human beings may be motivated by factors other than selfishness
C. compare certain views about human nature held by theoretical economists with those held by experimental economists
D. describe a study that apparently challenges theoretical economists’ understanding of human economic behavior
E. suggest that researchers may have failed to take into account the impact of certain noneconomic factors in designing a study of human economic behavior

Using POE,i was left with C and D.
I tried to differentiate between the first word (Compare vs Describe).
And felt compare would be apt word to convey the primary purpose.
Can some please explain why C is incorrect?

v1987 · Answer

2. The passage implies that the results of the Ultimatum Game undermine theoretical economists’ characterization of human beings by

Answer : suggesting that people’s economic behavior might in part be motivated by factors other than selfishness.

Doesnt the below lines contradict the above answer. Because the author ruled out quite many factors by saying they didnt impact the behavior in game?

Behavior in the game did not appreciably depend on the players’ sex, age, or education. Nor did the amount of money involved play a significant role: for instance, in trials of the game that were conducted in Indonesia, the sum to be shared was as much as three times the subjects’ average monthly income, and still responders refused offers that they deemed too small.

GMATNinja · Answer

Question 1 
 
(C) introduces the views of two different types of economists: theoretical and experimental. Then, it indicates that the passage compares the views of each of these types of economists.

The problem is that the passage does not compare the views of two different  types of economists . In fact, it doesn’t even mention experimental economists. It details the traditional view of theoretical economists and proceeds to describe an experiment that seems to undermine this view. So, the comparison is between the view (singular) of theoretical economists and an experiment, NOT the views (plural) of one type of economist and the views (plural) of another type of economist.

That's why you can eliminate (C).

Question 2 
 
Question 2 asks how the results of the Ultimatum Game undermine  theoretical economists’ characterization  of human beings. These economists characterize humans as being motivated only by selfishness. The results of the game undermine this characterization by suggesting that selfishness alone does not explain humans’ economic behavior.

Sure, the results rule out other potential factors that could influence the players’ behavior. But none of those are part of the economists’ characterization of humans. The economists are concerned with selfishness, and the game undermines the economists’ characterization by indicating that selfishness alone cannot account for all of the players’ behavior, even if the passage rules out other influences as well.

So (E) is the best answer choice.

I hope that helps!

TrungTiger · Answer

Dear  GMATNinja 
Regarding the question 1
I had confused to select between choice B and D. Although I then pick up D, I can not convince myself B is wrong.
 B. use a particular study to challenge the argument that the economic behavior of human beings may be motivated by factors other than selfishness
D. describe a study that apparently challenges theoretical economists’ understanding of human economic behavior
 
Then, when I reviewed question 2 with the correct answer E "suggesting that people’s economic behavior might in part be motivated by factors other than selfishness", I confused again about the question 1: Why B is wrong?
Please help

1. The primary purpose of the passage is to

A. provide evidence in support of the view that human beings are essentially rational and selfish
B. use a particular study to challenge the argument that the economic behavior of human beings may be motivated by factors other than selfishness
C. compare certain views about human nature held by theoretical economists with those held by experimental economists
D. describe a study that apparently challenges theoretical economists’ understanding of human economic behavior
E. suggest that researchers may have failed to take into account the impact of certain noneconomic factors in designing a study of human economic behavior

GMATNinja · Answer

Question 1 
 
In question 1, the key to eliminating (B) is the precise wording of the answer choice. It indicates that the passage  challenges  the argument that humans “may be motivated by  factors other than selfishness .” In other words, (B) implies the passage uses the experiment to argue that humans are motivated ONLY by selfishness.

But the passage uses the experiment for the opposite purpose. It uses the experiment to argue human beings are motivated by other factors. So, (B) describes the opposite of what the passage is doing. For that reason, we can eliminate it.

I hope that helps!

GAngstA · Answer

for question 3 , why not option b ?and why option c?
for me option b is correct because it showing low offer were made and it doesnt count it was accepted or rejected .......

GMATNinja · Answer

Question 3 
Question 3 asks us  why  the author refers to a sum of one dollar. In other words, how does this piece of the passage serve the author's overall argument?

To answer questions like this, it's important to understand the author's purpose as a whole, and from that draw out the reason for including a particular piece of the passage.

Here's a high-level breakdown of the passage:

In the first paragraph, the author:
  Introduces a previously held belief (that humans are "rational beings relentlessly bent on maximizing purely selfish reward"). 
 Introduces a study that  contradicts  this belief (the "Ultimate Game").

In the second paragraph, the author:
  Explains how people "should" play the Ultimate Game IF the previously held belief was correct.
   This is where the author brings up the "one dollar" amount    
 Explains how people ACTUALLY play the Ultimate Game, which contradicts the previously held belief.

Overall, the author uses a study to contradict the previously held belief that humans are relentlessly rational/selfish.

So, how does the discussion of "one dollar" fit into this overall argument?
 
There are a couple of issues with (B). First, we don't know that anyone ACTUALLY offered only $1 -- the author just says that people SHOULD offer/accept $1 if they truly were rational/selfish. So, it's not quite right to say that this is an example of something that happened, because we don't know whether it actually DID happen.

In addition, the author's reason for including the $1 discussion isn't just to provide an example of a low offer. Looking back to our passage breakdown, the author includes the example to show how people should act if they were rational/selfish.

(B) doesn't capture that intent, so (B) is out.

This one looks good! The author includes this extreme illustration to show what a rational person would do. Even if your stingy partner only offers you a dollar, it would be rational to accept the dollar instead of leaving with nothing at all. Later in the paragraph we learn that people  don't  accept small offers, showing that people aren't entirely rational.

(C) captures the author's reason for talking about $1, so (C) is the correct answer.

I hope that helps!

Rickooreo · Answer

KarishmaB   GMATNinja

For Q1,
While I agree that all the other options in Q1 are wrong with some doubt over option C - I eliminated because it says "views" whereas there is only one view - human are selfish

In Option D -  describe a study  that apparently challenges theoretical economists’ understanding of human economic behavior
Isn't the primary purpose to correct the humans aren't purely acting with selfish motive? study is just a part and not primary purpose of the passage

GMATNinja · Answer

Question 1 
 
In the first paragraph, the author introduces an idea and a study that challenges that idea. In the second paragraph, he/she goes further into detail about that study.

The author never actually states that the theoretical economists have been disproven, or "corrects" their view with a direct statement. He/she just lays out the facts of the study, and those facts challenge the theoretical economists.

So, describing the study, and how it interacts with the view of the theoretical economists, IS the primary purpose of the passage. (D) is the correct answer to question 1.

I hope that helps!

VerbalBot · Answer

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For many years, theoretical economists characterized humans as ration

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For many years, theoretical economists characterized humans as ration

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