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- 21Part BDirections:The following paragraphs are given in a wrong order. For Questions 41~45,you are required to reorganize these paragraphs into a coherent article by choosing from the list A—G to fill in each numbered box. The first and last paragraphs have been placed for you in Boxes. Mark your answers on ANSWER SHEET 1. (10 points)
A.These difficulties are compounded by question-marks caused by government policy proposals,for example,concerning moves from direct to indirect taxation or regulations concerning the introduction of lead-free petrol. Increasingly,consumers may find that structural changes in the world economy are undermining expectations about employment and promotion prospects that they have long taken for granted; yet new opportunities may not instantly stand out. Added to these worries are new puzzles arising from social changes such as the rise of the Women’s Movement—for example,how a couple might carve out two careers as a joint future without these endangering each other. Given this,one might expect that economists would devote a good deal of attention to the ways in which consumers set about making up their minds in situations of uncertainty and complexity.
B.Unfortunately,this has not been the case. The typical economist proceeds to analyze consumer behavior in a way which makes the problem of choice trivial. The individual consumer is portrayed as if she already has a completely specified set of preferences and seeks to maximize her utility subject to three constraints: her accumulated human and non-human capital,the state of technology,and the prevailing set of relative prices. The consumer’s prior investments in her own skills,coupled with her initial endowment of human capital,determine her employment opportunities. The latter,in turn,constrain her in respect of the commodities she will be able and inclined to purchase,given the prevailing set of prices.
C.If opportunities are not to be thrown needlessly away,the consumer must be a skilled spectator and strategist. Instability in exchange rates and inflation rates,and the unevenness with which inflationary forces feed through the system,makes it difficult to assess trends in respect to relative prices,including real wages.
D.Having assumed that the consumer is able to rank hypothetical bundles of consumption goods and employment obligations in order of preference,it is not surprising that the typical economist comes to think of the consumer simply as if she selects the highest-ranking bundle from her feasible set. What we have is an example of what Herbert Simon calls “substantive rationality”: the achievement of given goals within the limits imposed by given conditions.
E.The typical economist proceeds to analyze consumer behavior in a way which makes the problem of choice trivial. The individual consumer is portrayed as if she already has a completely specified set of preferences and seeks to maximize her utility subject to three constraints: her accumulated human and non-human capital,the state of technology,and the prevailing set of relative prices. The consumer’s prior investments in her own skills,coupled with her initial endowment of human capital,determine her employment opportunities. The latter,in turn,constrain her in respect of the commodities she will be able and inclined to purchase,given the prevailing set of prices.C.If opportunities are not to be thrown needlessly away,the consumer must be a skilled spectator and strategist. Instability in exchange rates and inflation rates,and the unevenness with which inflationary forces feed through the system,makes it difficult to assess trends in respect to relative prices,including real wages.D.Having assumed that the consumer is able to rank hypothetical bundles of consumption goods and employment obligations in order of preference,it is not surprising that the typical economist comes to think of the consumer simply as if she selects the highest-ranking bundle from her feasible set. What we have is an example of what Herbert Simon calls “substantive rationality”: the achievement of given goals within the limits imposed by given conditions.E.Technological change results in flux in the qualities and varieties of goods on offer,while the increasing complexity of modern products opens up scope for expensive errors when consumer durables are being purchased: the modern consumer cannot hope to be an expert buyer in all markets.
G.How the consumer works out what these “given conditions” might be is not discussed. The economist theories as if the consumer has defined her problem in advance in a way that makes its solution transparent,and then allows her on to the stage seemingly to solve it.
H.A.These difficulties are compounded by question-marks caused by government policy proposals,for example,concerning moves from direct to indirect taxation or regulations concerning the introduction of lead-free petrol. Increasingly,consumers may find that structural changes in the world economy are undermining expectations about employment and promotion prospects that they have long taken for granted; yet new opportunities may not instantly stand out. Added to these worries are new puzzles arising from social changes such as the rise of the Women’s Movement—for example,how a couple might carve out two careers as a joint future without these endangering each other. Given this,one might expect that economists would devote a good deal of attention to the ways in which consumers set about making up their minds in situations of uncertainty and complexity.B.Unfortunately,this has not been the case. The typical economist proceeds to analyze consumer behavior in a way which makes the problem of choice trivial. The individual consumer is portrayed as if she already has a completely specified set of preferences and seeks to maximize her utility subject to three constraints: her accumulated human and non-human capital,the state of technology,and the prevailing set of relative prices. The consumer’s prior investments in her own skills,coupled with her initial endowment of human capital,determine her employment opportunities. The latter,in turn,constrain her in respect of the commodities she will be able and inclined to purchase,given the prevailing set of prices.C.If opportunities are not to be thrown needlessly away,the consumer must be a skilled spectator and strategist. Instability in exchange rates and inflation rates,and the unevenness with which inflationary forces feed through the system,makes it difficult to assess trends in respect to relative prices,including real wages.D.Having assumed that the consumer is able to rank hypothetical bundles of consumption goods and employment obligations in order of preference,it is not surprising that the typical economist comes to think of the consumer simply as if she selects the highest-ranking bundle from her feasible set. What we have is an example of what Herbert Simon calls “substantive rationality”: the achievement of given goals within the limits imposed by given conditions.E.Technological change results in flux in the qualities and varieties of goods on offer,while the increasing complexity of modern products opens up scope for expensive errors when consumer durables are being purchased: the modern consumer cannot hope to be an expert buyer in all markets.F.How the consumer works out what these “given conditions” might be is not discussed. The economist theories as if the consumer has defined her problem in advance in a way that makes its solution transparent,and then allows her on to the stage seemingly to solve it.G.Being a consumer is not an easy role to play successfully,even in an affluent society. Consumers have to act in a complex,unsettled world where surprises are commonplace and not more deviations around a trend,a world full of novelty and obsolescence,a world that is,in short,turbulent.Order:G →41. →42. →43. →44. →45. →FA. B. C. D. E. F. G.
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