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gauravgundal Really wants to Beat The GMAT! Default Avatar
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RC help Post Wed Jan 12, 2011 10:32 pm
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  • Lap #[LAPCOUNT] ([LAPTIME])
    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, 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 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.

    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

    Hi, Can anyone tell me what does the word 'however' shown in bold contradict?

    Does it contradict the theoretical economists view about humans/ Results of the experiments

    If it does contradicts the view then the Primary purpose of the passage can be A.

    If the word 'however' doesn't contradict 'Results of the experiments' then how does it contradict ' theoretical economists view about humans' ,which is explained at the start of the passage.
    I saw the comments on forums ,which say that
    Quote:
    '- 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

    This means that what the passage is basically saying is that economists were wrong to think that it's only personal gain that motivates people.
    The above derivation results into the Answer choice (B)[/i]

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    Geva@MasterGMAT GMAT Instructor
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    Post Thu Jan 13, 2011 12:37 am
    Switch the however to the beginning, like so:

    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.

    I don't follow your reasoning for A, though: the purpose of the passage is to show how experiments contradict the view, not support the view (as stated in A).

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    Post Thu Jan 13, 2011 12:41 am
    And btw, I believe the answer is D, which clearly describes what the passage is doing.

    B is misleading in a "double negative" manner: The study is used to challenge the view that humans are purely selfish, not the opposite view (described in B) that humans are motivated by factors other than selfish (i.e. NOT purely selfish).

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    Post Fri Jan 14, 2011 11:07 am
    Same for me the answer should be D

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    Post Fri Jan 14, 2011 4:23 pm
    What's the OA? Also what's the source? I have to go with D. B definitely has tricky wording.

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    Post Fri Jan 14, 2011 9:25 pm
    My pick D.

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    Post Sat Mar 05, 2011 8:42 am
    +1 for D.
    B says: argument is the economic behavior of human beings may be motivated by factors other than selfishness" which is wrong. Argument is actually the inverse of the above stated.

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    Post Thu Apr 28, 2011 12:49 pm
    IMO D.

    Reasoning is as follows

    A - Incorrect. Study does not support view that humans are selfish and rational, in fact the experiment proved that most participants did not act selfishly or rationally.
    B - Incorrect. Study does not challenge BUT rather supports the notion that human beings are motivated by factors other than selfishness
    C - Tempting, although the language wording is not quite right. For example, no where in the passage does it mention experimental economists - instead it mentions an experimental economics study
    D- Correct. The study challenges the view held by theoretical economists as presented in the 1st sentence in the 1st para.
    E - Outside of scope; purpose of passage it not related to survey / experiment design

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    Post Sun May 15, 2011 3:33 pm
    Thanks for saying its D. I was breaking my head to understand how OA can be B

    Geva@MasterGMAT wrote:
    And btw, I believe the answer is D, which clearly describes what the passage is doing.

    B is misleading in a "double negative" manner: The study is used to challenge the view that humans are purely selfish, not the opposite view (described in B) that humans are motivated by factors other than selfish (i.e. NOT purely selfish).

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    Post Fri Oct 28, 2011 12:20 pm
    Wink thanks to Geva for saying that the answer to this should be D.

    I selected D and was sad to see the OA B.

    B surely cannot be the answer because it is evident that the primary purpose is to challenge the opinion held by Economists.

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    Post Sun Nov 06, 2011 7:10 am
    I'll choose D.

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    Post Mon Nov 07, 2011 6:13 am
    Yes D should be the answer.

    prashant misra Really wants to Beat The GMAT! Default Avatar
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    Post Fri Nov 11, 2011 8:45 am
    i go with the answer option D but i am still confused as some have posted above the answer to be option B and i was also confused between the two for a moment.

    ronnie1985 GMAT Destroyer!
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    Post Sun Apr 01, 2012 10:37 am
    IMO (D)

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    elenaelena Just gettin' started! Default Avatar
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    Post Thu Aug 16, 2012 3:34 am
    I was lost between B and D, but I've picked B, I guess it's wrong:(

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