The following text is from an economics article.
Neoclassical economic models assume rational agents maximizing utility with perfect information. Behavioral economics has documented systematic departures from this idealization—cognitive biases, heuristics, and emotional influences on decision-making. Some theorists propose integrating these insights into modified formal models; others argue the empirical findings require more fundamental reconceptualization of economic agency. This methodological debate continues to shape the discipline's direction.
Which choice best describes the function of the third sentence?
It presents competing responses to the challenge described in sentence two.
It provides examples of cognitive biases in economic decisions.
It resolves the tension between traditional and behavioral economics.
It introduces historical context for economic theory development.
Correct Answer: A
Choice A is the best answer. The third sentence presents two competing responses: integrating insights into models versus fundamental reconceptualization.
- Evidence: The sentence states: "Some theorists propose integrating... others argue the empirical findings require more fundamental reconceptualization."
- Reasoning: It outlines the two main academic reactions to the problem described in the previous sentence.
- Conclusion: The function is to present competing responses.
đź’ˇ Strategy: Look for "Some... others..." -> indicates competing views.
Choice B is incorrect because examples appear in sentence two. Choice C is incorrect because debate continues without resolution. Choice D is incorrect because history isn't introduced.