Reading Comprehension: Detail Questions

Which of the following statements about Chayanov's consumption-labor-balance principle is NOT supported by information in the passage?

Incorrect. [[snippet]] The **first sentence** of the **second paragraph** tells you that Chayanov's theories provide explanations for the *economically irrational behavior* of the Russian peasants. Furthermore, the **third sentence** clearly states that they *did not seek to maximize economic utility*. Since this answer is stated in the passage, it should be eliminated.

Incorrect. [[snippet]] The **last sentence** of the **second paragraph** explicitly states that Russian peasants feared that any extra income would be taxed by the government or taken by their lords and that they did not have many material needs (i.e., needs beyond basic sustenance).

Incorrect. [[snippet]] The **fourth sentence** of the **second paragraph** of the passage indicates that the amount of time Russian peasants worked was related to the ratio of workers to consumers. Therefore, a household with fewer workers would have to work more than a family with the same number of consumers but more workers, making the statement in this answer choice possible, according to the principle.

Incorrect. [[snippet]] The **first sentence** of the **second paragraph** tells you that Chayanov's theories provide explanations for the *economically irrational behavior* of the Russian peasants. Furthermore, the **third sentence** clearly states that they *did not seek to maximize economic utility*. Since this answer is stated in the passage, it should be eliminated.

Incorrect. [[snippet]] The **third sentence** of the **second paragraph** referring to the consumption-labor-balance principle states that Russian peasants *did not seek to maximize economic utility* (according to the neoclassical theory), and the **second sentence** of the **third paragraph** states that the 1970s agrarian historians believed the Russian peasants were driven *not in ways expected by the predictions of neoclassical theory*.

According to this principle, two households with the same number of consumers might not work the same amount of time per day.

This principle does not agree with the idea that people are motivated by maximizing their income-constrained utility.

According to this principle, Russian peasants were not concerned with the returns on their investments of time and effort but with maximizing their leisure time.

According to this principle, Russian peasants did not work as hard as possible because they feared that the products of their work would be confiscated and they did not need much beyond basic sustenance.

Although this principle puts forth different reasons for Russian peasant behavior, it is similar to the theory of 1970s agrarian historians in that both theories do not comply with the predictions of neoclassical economics.