Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer?

EduRev

All Courses

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

CAT Exam > CAT Questions > Comprehension:You are presented with a parag...

Join the Discussion on the App

Comprehension:

You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.

Question:

Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.

a)
As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.
b)
Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.
c)
As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.
d)
Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.
e)
None of the above

Correct answer is option 'D'. Can you explain this answer?

FREE This question is part of

MAH-CET MBA Mock Test- 2

Attempt Test

Attempt this Test

Verified Answer

Comprehension:You are presented with a paragraph with options (1), (2...

Option 1 does not mention that individuals take rational decisions, option 2 incorrectly states that only those individual actions which are rationally motivated make up a social phenomenon but the paragraph says all individuals make rational choices only so there are no irrational choices as per the theory, option 3 also incorrectly states that rational choices only make up those social phenomena which are motivated by profit, option 4 is the correct choice (prudent and logical decisions are rational decisions).

View all questions of this test

View all answers Start learning for free

< Previous Question Next Question >

Explore Courses for CAT exam

Similar CAT Doubts

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self-worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact-finding authorities who used legitimate decision-making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.There is only one term in the left column which matches with the options given in the second column. Identify the correct pair from the following table

View answer

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.There is only one term in the left column which matches with the options given in the second column. Identify the correct pair from the following table

View answer

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience.Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.For summarizing the passage, which of the following is most appropriate

View answer

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.The hypothesis mentioned in the passage tests at least one of the following ideas.

View answer

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self-worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact-finding authorities who used legitimate decision-making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.For summarizing the passage, which of the following is most appropriate

View answer

Top Courses for CATView all

Quantitative Aptitude (Quant)

Crash Course for CAT

CAT Mock Test Series 2024

Mock Test Series for SNAP

Mock Test Series for XAT

Top Courses for CAT

View all

Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer?

Share with a Friend

Answer this doubt

Question Description
Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer?.

Solutions for Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Comprehension:You are presented with a paragraph with options (1), (2), (3), (4) and (5). Read the paragraph carefully and identify which of the given options correctly explains the paragraph or correctly summarizes it, if none of the options correctly explains it mark (5) as your answer.Question:Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit. Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social institutions, he needs to look at the rational decisions of the individuals that make up the whole.a)As per Rational choice theory, all the decisions taken by people are in their highest self-interest so any social change or planning driven by these individual decisions lead to a quintessential outcome.b)Rational Choice theory suggests that all complex social phenomena can be explained in terms of the elementary individual actions, only the ones which are rationally motivated, of which they are composed.c)As per the Rational Choice theory, rational individuals choose the alternative that is likely to give them the greatest satisfaction together building any social phenomena that is motivated by profit.d)Rational choice theory postulates that individuals always make prudent and logical decisions, which provide people with the greatest benefit or satisfaction, and all social phenomena are reducible to these individual decisions.e)None of the aboveCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.

Explore Courses for CAT exam