CAT 2024 - Slot 1 Varc Question 9
This is a detailed step-by-step solution for CAT 2024 - Slot 1 Varc Question 9. Understand the concept, common mistakes, and expert tips to solve similar questions in CAT exam.
CAT 2024 Slot 1 - VARC
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
Option a: The passage does not suggest that 'homo economicus' is not influenced by others’ preferences. It only states that this model assumes people have their own preferences that determine their actions.
Option b: This is wrong as the passage states that economists like Gary Becker, associated with the homo economicus model, did not borrow or collaborate with other disciplines.
Option d: The passage mentions applying economic reasoning to nonmarket domains but does not tie this specifically to homo economicus.
Hence, option c is the correct answer.