Question #N1267

The passage describes how a certain type of research, namely, behavioral economics, challenges traditional economic theory. It's given that the study of behavioral economics focuses on the ways in which people make decisions and how those decisions may deviate from those predicted by traditional economic theory. For example, the study of behavioral economics has shown that people may be more influenced by social factors, such as emotions and personal experiences, than by rational considerations. This leads researchers to conclude that traditional economic theory, based on the assumption of rational actors, may not be adequate for explaining all economic decisions and behaviors. What is the most likely reason why the writer uses the phrase "for example"?

The phrase "for example" is used to
A. illustrate the key characteristics of traditional economic theory.
B. provide a specific example that supports a claim about behavioral economics.
C. introduce a distinction between behavioral economics and traditional economic theory.
D. compare the approaches used in behavioral economics and traditional economics.

Correct Answer is: B

The phrase "for example" is used to introduce an example that supports the claim made in the previous sentence. The previous sentence states that behavioral economics has shown that people may be more influenced by social factors than by rational considerations. The example provided in the following sentence illustrates this claim by mentioning that research has shown that people may be influenced by emotions, which is a social factor. Therefore, the phrase "for example" is used to provide a specific example that supports the claim about behavioral economics.