Part III
Keys and explanations to the Questions 1-13
1. TRUE
See the second and third sentence in Paragraph A “Neoclassical economics assumes that the process of decision-making is rational. But that contradicts growing evidence that decision-making draws on the emotions—even when reason is clearly involved.”
2. TRUE
See the third sentence in Paragrph B “ Since emotion is the mechanism by which animals are prodded towards such outcomes, evolutionary and economic theory predict the same practical consequences for utility in these cases.”
3. FALSE
See the second sentence in Paragrph C “In particular, he suspects that modern shopping has subverted the decision-making machinery in a way that encourages people to run up debt.”
4. TRUE
See the last sentence in Paragrph E “Moreover, the level of its activity correlated with the reported desirability of the product in question.”
5. FALSE
See the second sentence in Paragrph F and G respectively “Excessively high prices increased activity in the insular cortex, a brain region linked to expectations of pain, monetary loss and the view