| CAT 2024 Question Paper VARC Slot 1 Question 6.
Choose the correct option from below list
Read the below paragraph and answer the questions after reading paragraph and question is "We can infer from the passage that the term 'homo economicus' refers to someone who"
(1)is not influenced by the preferences and choices of others.
(2)believes in borrowing and collaborating with other disciplines in their work.
(3)makes rational decisions based on their own preferences.
(4)maximises their opportunities based on nonmarket choices.
Answer:-(3)makes rational decisions based on their own preferences.
Note:-The passage suggests that the idea of 'homo economicus' assumes that people have “preferences” that determine their choices. Deciding whether to spend limited money on food or warmth illustrates this rational decision-making based on individual preferences. This aligns with option C. | | |