Question 1
Passage: The rise of behavioral economics has fundamentally challenged the classical economic assumption that individuals act as perfectly rational agents who maximize utility. Researchers such as Kahneman and Tversky demonstrated through systematic experiments that human decision-making is riddled with cognitive biases — mental shortcuts that often lead to predictable errors. Loss aversion, for example, causes individuals to weight potential losses roughly twice as heavily as equivalent gains, leading to risk-averse choices that a purely rational actor would never make. Anchoring bias causes people to rely disproportionately on the first piece of information they encounter, even when that information is irrelevant to the decision at hand. The primary purpose of this passage is to:
Correct Answer:
Explain how behavioral economics challenges the classical model of rational decision-making
Question 2
Passage: The rise of behavioral economics has fundamentally challenged the classical economic assumption that individuals act as perfectly rational agents who maximize utility. Researchers such as Kahneman and Tversky demonstrated through systematic experiments that human decision-making is riddled with cognitive biases — mental shortcuts that often lead to predictable errors. Loss aversion, for example, causes individuals to weight potential losses roughly twice as heavily as equivalent gains, leading to risk-averse choices that a purely rational actor would never make. Anchoring bias causes people to rely disproportionately on the first piece of information they encounter, even when that information is irrelevant to the decision at hand. According to the passage, anchoring bias occurs when a person:
Correct Answer:
Relies too heavily on an initial piece of information, even if it is irrelevant
Question 3
Passage: The rise of behavioral economics has fundamentally challenged the classical economic assumption that individuals act as perfectly rational agents who maximize utility. Researchers such as Kahneman and Tversky demonstrated through systematic experiments that human decision-making is riddled with cognitive biases — mental shortcuts that often lead to predictable errors. Loss aversion, for example, causes individuals to weight potential losses roughly twice as heavily as equivalent gains, leading to risk-averse choices that a purely rational actor would never make. Anchoring bias causes people to rely disproportionately on the first piece of information they encounter, even when that information is irrelevant to the decision at hand. The author's tone in this passage can best be described as:
Correct Answer:
Informative and analytically measured
Question 4
Passage: Throughout the nineteenth century, historians largely treated history as a narrative of great men and pivotal political events. The 'history from above' model emphasized the actions of kings, generals, and statesmen as the primary engines of historical change. By the mid-twentieth century, however, social historians began shifting focus toward the experiences of ordinary people — workers, women, and marginalized communities. This 'history from below' approach drew on demographic data, court records, and oral histories to reconstruct everyday life. Critics of the new social history argued that it fragmented the coherent narrative that gave history its explanatory power, while proponents countered that such narratives had merely disguised whose experiences were deemed worthy of remembering. The passage implies that proponents of 'history from below' would most likely agree with which of the following statements?
Correct Answer:
Traditional historical narratives reflected the perspectives of those in power rather than objective truth.
Question 5
Passage: Throughout the nineteenth century, historians largely treated history as a narrative of great men and pivotal political events. The 'history from above' model emphasized the actions of kings, generals, and statesmen as the primary engines of historical change. By the mid-twentieth century, however, social historians began shifting focus toward the experiences of ordinary people — workers, women, and marginalized communities. This 'history from below' approach drew on demographic data, court records, and oral histories to reconstruct everyday life. Critics of the new social history argued that it fragmented the coherent narrative that gave history its explanatory power, while proponents countered that such narratives had merely disguised whose experiences were deemed worthy of remembering. Which of the following best describes the structure of this passage?
Correct Answer:
An older approach is described, a newer approach is introduced, and then competing evaluations of the newer approach are presented.
Question 1
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Prepare with the GMAT Verbal Practice Questions - GMAT Focus Edition - Verbal Reasoning Exam practice quiz. This question bank includes 100 questions covering argument, passage, higher, critics, and social. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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GMAT Verbal Practice Questions - GMAT Focus Edition - Verbal Reasoning Exam

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