Hello,
Consider the 2 segments of a long RC passage.The question does not require other parts. Please clarify my doubt.
Although the Austrian school of economic thought,sometimes called the Vienna school, shares with neoclassical economics a focus on the actions of the individual actor, it distinguishes itself most from this more orthodox perspective with its influential Austrian Business Cycle Theory(ABCT).
ABCT represents an attempt by the school's theorists to explain the "boom and dust" cycle in modern economies. ...and etc etc.....
(At the end of the passage)
While neoclassical economists make use of the idea of time preferences in some economic analyses, the Austrian school makes time preferences a major focus of its theoretical investigations.
Question...
According to the passage,a major difference between the Austrian school and the neoclassical school is the Austrian school's
(A) attempt to explain an economy's boom and bust cycles
(B) emphasis on historical factors in its economic analyses.
The answer given is option (B)(citing time preferences). But why not (A) ? The book I referred to , eliminates option (A) by saying that neoclassical economists could have their own " boom and bust cyle " theory.But even if they had such a theory, it should be different from the Austrian school's theory ( that's what the first para and the starting of the second para say . )
Please explain how to tackle this question .
Consider the 2 segments of a long RC passage.The question does not require other parts. Please clarify my doubt.
Although the Austrian school of economic thought,sometimes called the Vienna school, shares with neoclassical economics a focus on the actions of the individual actor, it distinguishes itself most from this more orthodox perspective with its influential Austrian Business Cycle Theory(ABCT).
ABCT represents an attempt by the school's theorists to explain the "boom and dust" cycle in modern economies. ...and etc etc.....
(At the end of the passage)
While neoclassical economists make use of the idea of time preferences in some economic analyses, the Austrian school makes time preferences a major focus of its theoretical investigations.
Question...
According to the passage,a major difference between the Austrian school and the neoclassical school is the Austrian school's
(A) attempt to explain an economy's boom and bust cycles
(B) emphasis on historical factors in its economic analyses.
The answer given is option (B)(citing time preferences). But why not (A) ? The book I referred to , eliminates option (A) by saying that neoclassical economists could have their own " boom and bust cyle " theory.But even if they had such a theory, it should be different from the Austrian school's theory ( that's what the first para and the starting of the second para say . )
Please explain how to tackle this question .
