The following text is from an economics article.
Behavioral economics challenges the assumption that humans make rational economic decisions. Studies show people frequently exhibit predictable irrationalities: loss aversion, present bias, and anchoring effects. Businesses increasingly apply these insights, designing "nudges" that guide consumers toward beneficial choices. Critics worry such techniques may be manipulative, even when used benevolently.
What is the primary purpose of the text?
To argue that consumers should resist marketing techniques
To explain behavioral economics and its applications and concerns
To compare behavioral economics across different cultures
To provide advice for starting a business
Correct Answer: B
Choice B is the best answer. The text explains behavioral economics (irrational decisions), applications (nudges), and concerns (manipulation).
- Evidence: The text explains the field: "challenges the assumption that humans make rational... decisions." It notes applications: "designing 'nudges'." It notes concerns: "Critics worry... manipulative."
- Reasoning: The passage provides an overview of the field, its practical use, and ethical issues.
- Conclusion: The purpose is to explain the field and its context.
💡 Strategy: Summarize the three parts: The Concept + The Application + The Critique.
Choice A is incorrect because resistance isn't advised. Choice C is incorrect because cultures aren't compared. Choice D is incorrect because business advice isn't given.