Part A
Directions:
Read the following four texts. Answer the questions below each text by choosing A, B, C or D. Mark your answers on ANSWER SHEET 1. (40 points )
Text 1
Economists often like to speak of Homo economicus—rational economic man. In practice, human economic behaviour is not quite as rational as the relentless logic of theoretical economics suggests it ought to be. When buying things in a straight exchange of money for goods, people often respond to changes in price in exactly the way that theoretical economics predicts. But when faced with an exchange whose outcome is predictable only on average, most people prefer to avoid the risk of making a loss than to take the chance of making a gain in circumstances when the average expected outcome of the two actions would be the same.
21. The capuchin monkey was chosen for the experiments because____________
[A] it is from South America.
[B] it doesn’t understand the concept of money.
[C] it is often used in behavioral experiments.