For Q3,
C ) It assumes that the primary impetus behind human decision-making is not predicated on ethics or cultural mores.

To paraphrase the above choice, it mentions that a criticism of the theory was that the theory assumes that human actions aren't anticipated based on morals.

However, the passage mentions the below,
Amartya Sen has pointed out that Homo economicus ignores that people can and do commit to courses of action out of morality, cultural expectations, and so forth.

To paraphrase this, Sen criticizes the theory that it " ignores" immorality. Consequently, he criticizes that the theory assumes that ppl behave based on morality.

I find the answer opposite to the passage.

May someone explains ?

No

Homo economicus actually is a theory based on the fact that a person has symmetric or full information about everything.

Instead many of the objections in the passage say that is not properly so. After that, we do have several professors who point out that the HE is an imperfect theory as it was formulated because a person does not know a lot of things: X,Y,Z, and so forth

Even the sentence you pointed out says that

Amartya Sen has pointed out that Homo economicus ignores that people can and do commit to courses of action out of morality, cultural expectations, and so forth.

She pointed out that HE in his/her/ decisions DOES NOT take into account several factors that have also economic implications: morality, cultural perspective and so forth

So indeed you have paraphrasing wrongly what Sen sustained

Hope this helps

Can someone explain why in the Q3, the second option is not part of the right answer. The passage states that Tversky puts forth that investors are not rational: they are unconcerned by small chances of large losses, but quite risk-averse regarding small losses.
And the second option also states: - It assumes that humans experience a proportional and linear emotional response to all risks and rewards.

This is a criticism by Tversky when he says that large losses do not cause concern whereas small losses do cause. So it means that humans are not proportional and do not have a linear emotional response because if they had then people should have been more concerned on the large losses but they are not.

According to me the second option should also be part of the correct answer, why is it not ?

Hi Carcass
For ques3 why is B not an answer? Please explain.

Thanks,
Simran

Question 1: Which phenomena exemplify Bruno Frey's critique of Homo economicus?
Bruno Frey's critique centers on the idea that humans are often intrinsically motivated-driven by values, craftsmanship, heroism, or other non-material rewards, rather than just narrow self-interest or extrinsic rewards.

A woodworker spends months on the delicate inlay of a door, knowing that his many hours
- of hard work will inevitably result in a higher price when he comes to sell the piece.

This is not an example of intrinsic motivation, as the woodworker is acting for extrinsic reward (higher price).
$\(\rightarrow\)$ Does not exemplify Frey's critique.
A television journalist often travels to dangerous countries all over the world because he is contractually obligated to do so, and his ratings are higher the more dangerous his exploits
- appear to be.

This is driven by contractual obligation and extrinsic reward (ratings), not intrinsic motivation.
$\(\rightarrow\)$ Does not exemplify Frey's critique.
An economist dedicates her career to illustrate a fundamental flaw in a particular theory,
- though she knows there will be no tangible reward for her efforts.

This is an example of intrinsic motivation-pursuing a cause for its own sake, not for personal gain.
$\(\rightarrow\)$ Exemplifies Frey's critique.
Answer: Only the third option exemplifies Bruno Frey's critique.

Question 2: Which best describes the main idea of the passage?
The passage outlines the concept of Homo economicus, its historical use in economic models, and the various criticisms from economists like Sen, Veblen, Keynes, Tversky, and Frey. The main idea is that Homo economicus is a problematic construction because it oversimplifies human motivations and is overly optimistic about human understanding and rationality.

Answer:
(D) Homo economicus is a problematic construction, because it simplifies human motivations and is overly optimistic about human understanding.

Question 3: Which complaints are leveled against the theory of Homo economicus?
It assumes that the average person knows a lot more about the general workings of the
- economy than he or she actually does.

This is a complaint from Veblen and Keynes, who argue that Homo economicus assumes too much understanding of macroeconomics.

asutoshcollege

It assumes that humans experience a proportional and linear emotional response to all
- risks and rewards.

This is not directly mentioned in the passage or in the critiques cited. The passage discusses risk aversion and irrationality (Tversky), but not specifically a "proportional and linear" response.

It assumes that the primary impetus behind human decision making is not predicated on
- ethics or cultural mores.

This is a complaint from Amartya Sen, who points out that Homo economicus ignores moral and cultural motivations. wikipedia

Answer:
- It assumes that the average person knows a lot more about the general workings of the economy than he or she actually does.
- It assumes that the primary impetus behind human decision making is not predicated on ethics or cultural mores.