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Neoclassicaleconomicsisbuiltontheassumptionthathumansarerationalbeingswhohaveaclearideaoftheirbestinterestsandstrivetoextractmaximumbenefit(or"utility",ineconomist-speak)fromanysituation.Neoclassicaleconomicsassumesthattheprocessofdecision-makingisrational.Butthatcontradictsgrowingevidencethatdecision-makingdrawsontheemotions—evenwhenreasonisclearlyinvolved.Theroleofemotionsindecisionsmakesperfectsense.Forsituationsmetfrequentlyinthepast,suchasobtainingfoodandmates,andconfrontingorfleeingfromthreats,theneuralmechanismsrequiredtoweighuptheprosandconswillhavebeenhonedbyevolutiontoproduceanoptimaloutcome.SinceemotionisthemechanismbywhichI.Thatmakesperfectsenseasanevolvedmechanismfortrading.Ifoneusefulobjectisbeingtradedforanother(hardcashinmoderntime),thefutureutilityofwhatisbeinggivenupisembeddedintheobjectbeingtraded.Emotionisascapableofassigningsuchavalueasreason.Buyingoncredit,though,maybedifferent.Theabstractnatureofcreditcards,coupledwiththedefermentofpaymentthattheypromise,maymodulatethe"con"sideofthecalculationinfavourofthe"pro".Whetheritactuallydoessowillbethesubjectoffurtherexperimentsthatthethreeresearchersarenowdesigning.Thesewilltestwhetherpeoplewithdistinctlydifferentspendingbehaviour,suchasmiserlinessandextravagance,experiencedifferentamountsofpaininresponsetoprices.Theywillalsoassesswhether,inthesameindividuals,buyingwithcreditcardseasesthepaincomparedwithpayingbycash.Iftheyfindthatitdoes,thencreditcardsmayhavetojointhelistofthingssuchasfattyandsugaryfoods,andrecreationaldrugs,thatsubverthumaninstinctsinwaysthatseempleasurableattomonetarylossandtheviewingofupsettingpictures.6.Whentheactivityinnucleusaccumbenswasincreasedbythesenseofagoodbargain,peopletendedtopurchasecoffee.ChoosetheappropriatelettersA-Dandwritetheminboxes7-9onyouranswesheet.7.Whichofthefollowingstatementsaboutorthodoxeconomicsistrue?A.Theprocesswhichpeoplemaketheirdecisionsisrational.B.Peoplehaveaclearideaoftheirbestinterestsinanysituation.C.Humansmakejudgementonthebasisofreasonratherthenemotion.D.Peopleweighthepresentgoodagainstfuturealternativesinshopping.8.Theword"miserliness"inline3ofParagraphJA.people'sbehaviorofbuyingluxuriousgoodsB.people'sbehaviorofbuyingveryspecialitemsC.people'sbehaviorofbeingverymeaninshoppingD.people'sbehaviorofbeingverygenerousin9.Thethreeresearchersarenowdesigningthefutureexperiments,whichtestA.whetherpeoplewithverydifferentspendingbehaviourexperiencedifferentamountsofpaininresponsetoproducts.B.whetherbuyinganitemwithcreditcardseasesthepainofthesameindividualscomparedwithpayingforitbyC.whethertheabstractnatureofcreditcardsmaymodulatethe"con"sideofthecalculationinfavourofthe"pro".D.whetherthecreditcardsmaysubverthumaninstinctsinwaysthatseempleasurablebutwithaterribleeffect.Completethenotesbelow.foreachanswer.Writeyouranswersinboxes10-13onyouranswersheet.Tofindwhathappensinthebrainofhumanswhenitisdecidingthingstobuy,GeorgeLoewensteinandhisco-researchersdidanexperimentbyusingthetechniqueoffMRI.Theyfoundthatdifferentpartsofthebrainwereinvlovedintheprocess.Theactivityinincreasedwiththedisplayingofcertainproduct.Thegreatactivitywasfoundintheinsularcortexwhensubjectdecidednottobuyaproduct.Theactivityofthemedialprefrontalcortexseemedtoassociatewithboth1213differentpartsofthebrain.PartII1.thenucleusaccumbens,theinsularcortex,andthemedialprefrontalcortex:e.g.cerebellarcortex小脑皮层cerebralcortex大脑皮2.hone:3.subvert:4.piggyback:5.deferment:6.aftertaste:PartIIIKeysandexplanationstotheQuestions1-13SeethesecondandthirdsentenceinParagraphA"Neoclassicaleconomicsassumesthattheprocessofdecision-makingisrational.Butthatcontradictsgrowingevidencethatdecision-makingdrawsontheemotions—evenwhenreasonisclearlyinvolved."SeethethirdsentenceinParagrphB"Sinceemotionisthemechanismbywhichanimalsareproddedtowardssuchoutcomes,evolutionaryandeconomictheorypredictthesamepracticalconsequencesforutilityinthesecases."SeethesecondsentenceinParagrphC"Inparticular,hesuspectsthatmodernshoppinghassubvertedthedecision-makingmachineryinawaythatencouragespeopletorunupdebt."SeethelastsentenceinParagrphE"Moreover,thelevelofitsactivitycorrelatedwiththereporteddesirabilityoftheproductinquestion."SeethesecondsentenceinParagrphFandGrespectively"Excessivelyhighpricesincreasedactivityintheinsularcortex,abrainregionlinkedtoexpectationsofpain,monetarylossandtheviewNeoclassicaleconomicsisbuiltontheassumptionthathumansarerationalbeingswhohaveaclearideaoftheirbestinterestsandstrivetoextractmaximumbenefit(or"utility",ineconomist-speak)fromanysituation.Neoclassicaleconomicsassumesthattheprocessofdecision-makingisrational.Butthatcontradictsgrowingevidencethatdecision-makingdrawsontheemotions—evenwhenreasonisclearlyinvolved.Theroleofemotionsindecisionsmakesperfectsense.Forsituationsmetfrequentlyinthepast,suchasobtainingfoodandmates,andconfrontingorfleeingfromthreats,theneuralmechanismsrequiredtoweighuptheprosandconswillhavebeenhonedbyevolutiontoproduceanoptimaloutcome.Sinceemotionisthemechanismbywhichanimalsareproddedtowardssuchoutcomes,evolutionaryandeconomictheorypredictthesamepracticalconsequencesforutilityinthesecases.ButdoesthisstillapplywhentheancestralmachineryhastorespondtothestimuliofurbanOneofthepeoplewhothinksthatitdoesnotisGeorgeLoewenstein,aneconomistatCarnegieMellonUniversity,inPittsburgh.Inparticular,hesuspectsthatmodernshoppinghassubvertedthedecision-makingmachineryinawaythatbeinggivenupisembeddedintheobjectbeingtraded.Emotionisascapableofassigningsuchavalueasreason.Buyingoncredit,though,maybedifferent.Theabstractnatureofcreditcards,coupledwiththedefermentofpaymentthattheypromise,maymodulatethe"con"sideofthecalculationinfavourofthe"pro".Whetheritactuallydoessowillbethesubjectoffurtherexperimentsthatthethreeresearchersarenowdesigning.Thesewilltestwhetherpeoplewithdistinctlydifferentspendingbehaviour,suchasmiserlinessandextravagance,experiencedifferentamountsofpaininresponsetoprices.Theywillalsoassesswhether,inthesameindividuals,buyingwithcreditcardseasesthepaincomparedwithpayingbycash.Iftheyfindthatitdoes,thencreditcardsmayhavetojointhelistofthingssuchasfattyandsugaryfoods,andrecreationaldrugs,thatsubverthumaninstinctsinwaysthatseempleasurableatthetimebutcanhavealongandmalignaftertaste.C.Humansmakejudgementonthebasisofreasonratherthenemotion.D.Peopleweighthepresentgoodagainstfuturealternativesinshopping.8.Theword"miserliness"inline3ofParagraphJA.people'sbehaviorofbuyingluxuriousgoodsB.people'sbehaviorofbuyingveryspecialitemsC.people'sbehaviorofbeingverymeaninshoppingD.people'sbehaviorofbeingverygenerousin9.Thethreeresearchersarenowdesigningthefutureexperiments,whichtestA.whetherpeoplewithverydifferentspendingbehaviourexperiencedifferentamountsofpaininresponsetoproducts.B.whetherbuyinganitemwithcreditcardseasesthepainofthesameindividualscomparedwithpayingforitbyC.whethertheabstractnatureofcreditcardsmaymodulatethe"con"sideofthecalculationinfavourofthe"pro".D.whetherthecreditcardsmaysubverthumaninstinctsinwaysthatseempleasurablebutwithaterribleeffect.Completethenotesbelow.foreachanswer.Writeyouranswersinboxes10-13onyouranswersheet.Tofindwhathappensinthebrainofhumanswhenitisdecidingthingstobuy,GeorgeLoewensteinandhisco-researchersdidanexperimentbyusingthetechniqueoffMRI.Theyfoundthatdifferentpartsofthebrainwereinvlovedintheprocess.Theactivityinincreasedwiththedisplayingofcertainproduct.Thegreatactivitywasfoundintheinsularcortexwhensubjectdecidednottobuyaproduct.Theactivityofthemedialprefrontalcortexseemedtoassociatewithboth1213differentpartsofthebrain.PartII1.thenucleusaccumbens,theinsularcortex,andthemedialprefrontalcortex:e.g.cerebellarcortex小脑皮层cerebralcortex大脑皮2.hone:3.subvert:4.piggyback:5.deferment:6.aftertaste:PartIIIKeysandexplanationsto

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