Primary Purpose

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Primary Purpose

by rahul.s » Thu Jan 21, 2010 6:51 am
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' GMAT, 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

Well, it seems like a simple question, doesn't it?

But for some reason, I'm having major issues with 'primary purpose' questions. Could you please provide me with a strategy to tackle such questions?

Will provide the OA after some discussion.
Source: — Reading Comprehension |

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by sadullaevd » Thu Jan 21, 2010 7:33 am
Imo E

Here is my approach.

The main thesis: ...bent on maximizing purely selfish reward. Results of an experimental economics study appear to contradict this view, however.

Next the evidence is presented:
If, in fact, people are selfish and rational,... In numerous trials, however, two-thirds of the offers made were between 40 and 50 percent;

So according to study, people are not motivated by economic factors only. This supports the thesis and confronts the theory by theoretical economists(first sentence of the passage)

Post OA plz
Stay skeptical,
Think critically,
Assume nothing.

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by rahul.s » Thu Jan 21, 2010 11:01 am
sadullaevd wrote:Imo E

Here is my approach.

The main thesis: ...bent on maximizing purely selfish reward. Results of an experimental economics study appear to contradict this view, however.

Next the evidence is presented:
If, in fact, people are selfish and rational,... In numerous trials, however, two-thirds of the offers made were between 40 and 50 percent;

So according to study, people are not motivated by economic factors only. This supports the thesis and confronts the theory by theoretical economists(first sentence of the passage)

Post OA plz
The OA's D, but I opted for B

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by DanaJ » Thu Jan 21, 2010 12:01 pm
We have two pieces of information:
- 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.

Now let's look at the answer choices: the one you selected says that the study is used to challenge the argument that the economic behavior of human beings may be motivated by factors other than selfishness. This argument is the exact opposite of what theoretical economists think, though: they do believe that behavior is selfish.

The official answer is much closer to the point of the paragraph. The answer mentioned by sadullaevd is also incorrect, because there validity of the test is not discussed: it's just an experiment that was carried out.

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by rahul.s » Fri Jan 22, 2010 7:27 am
Now it's simple. Thank you folks :)