CAT Question of the Day #4

Question of the Day August 10th, 2009

The question below contains a paragraph followed by alternative summaries. Choose the option that best captures the essence of the paragraph.

Animals Spirits is the colourful name that Keynes gave to one of the essential ingredients of economic prosperity: confidence. According to Keynes, animal spirits are a particular sort of confidence, “naive optimism”. He meant this in the sense that, for entrepreneurs in particular, “the thought of ultimate loss which often overtakes pioneers, as experience undoubtedly tells us and them, is put aside as a healthy man puts aside the expectation of death”. Where these animal spirits come from is something of a mystery.

OPTIONS

	1)	Animal Spirits, according to Keynes, is the mysterious and naive optimism that guides an entrepreneur.
	2)	Animal Spirits, according to Keynes, is the spontaneous optimism of an entrepreneur that makes him unmindful of the risks involved.
	3)	Animal Spirits, according to Keynes, is the confidence of an entrepreneur that helps him put aside the inevitable loss.
	4)	Animal Spirits, according to Keynes, is the spontaneous optimism of an entrepreneur that helps him put aside the thought of ultimate loss.
	5)	Animal spirits, according to Keynes, are a sort of irrational confidence that makes an entrepreneur postpone the thought of the ultimate loss.