Economics and Trust — Notes — REAL IELTS EXAM TEST 29 — IELTS Test

REAL IELTS EXAM TEST 29

Economics and Trust — Notes

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(0:02) Section 4. You will hear part of a lecture about oxytocin and trust. (0:09) First, you have some time to look at questions 31 to 40. (1:04) Now listen carefully and answer questions 31 to 40.
(1:11) The development of trust is an essential social tool, allowing people to form productive and (1:17) meaningful relationships, both at a professional and personal level. (1:22) Trust is indispensable in friendship, love, families, (1:25) and organizations, and plays a key role in economic exchange and politics. (1:31) Much recent evidence indicates that trust contributes to economic, political, and social (1:36) success.
When we make contacts with strangers, such as doing business with the clients who
(1:42) we meet for the first time, our trust in them can only rely on their kindness. (1:47) So, from our own judgment or the comments from other people, (1:51) we can have a rough idea if the stranger is trustworthy. (1:55) Trust is important because it is the basis around which all human relationships evolve.
(2:00) Without trust, there can be no relationship. Trust can come naturally, or it can be manifested. (2:07) If you find trust of this magnitude in life, then you are lucky.
(2:12) Also, you can always count on them to protect through all, if not most, of life's perils. (2:18) Trust is important because if you don't trust someone, then they are not available. (2:23) Believe it or not, reducing the chance of suffering from poverty is to understand trust, (2:28) because when you trust other people, you can have more support and resources.
(2:33) However, our ability to trust others varies from individual to individual, (2:38) just like different people's ability of recognizing a person's face is not the same. (2:43) Bonds of trust are also extremely fragile. A single act of betrayal, (2:48) such as a marital affair, can instantly erase years of trustworthy behavior.
(2:53) The consequences of such breaches in confidence can be disastrous, (2:57) and not only for a relationship. The study demonstrates how oxytocin can facilitate (3:03) social interactions after trust has been violated, by potentially lowering defense (3:07) mechanisms associated with social risks and by overcoming negative feedback that is important (3:13) for adapting behavior in the future. Luckily, oxytocin in our body has the (3:19) ability to inspire trust in and among people.
This chemical is released whenever interaction
(3:24) happens between people. To study social interactions, (3:33) economists and more recently neuroscientists take advantage of a simple experiment. (3:39) Two participants play the so-called trust game.
The first participant is faced with the decision
(3:45) to keep a sum of money or share it with the second participant who has no obligation to (3:50) give the money back. He would get more money if the second person returns it. (3:55) In this game, the first person is left with an important social dilemma, to trust or not to trust.
(4:01) Although it is more profitable to trust, doing so leaves the investor at risk of betrayal. (4:08) Trust is not something that naturally occurs when two people meet for the first time, (4:13) it involves a process. One person has to show the quality of being trustworthy to the other person.
(4:20) This can be achieved by certain behaviors and communication, (4:24) therefore trust is conditional, people should not take it for granted. (4:30) Oxytocin does not only exist in human beings, animals also have this gift and it can be seen (4:35) when they have cooperation with each other. Oxytocin in monkeys for example allow them (4:41) to work together to find food and to fight against enemies.
(4:45) The Nash Equilibrium's Game Theory, the first participant will make the best decision he can (4:50) with no expectations that the second participant would change his decision. (4:55) The second participant will do the same, so the outcome depends on the decision of the (5:00) other person. This game is similar to the one we just talked about.
(5:05) The oxytocin level doesn't stay the same in a person's body, (5:09) studies have found that people who are under a lot of stress would have higher levels of oxytocin. (5:15) Oxytocin causes a substantial increase in trust among humans, (5:19) thereby greatly increasing the benefits from social interactions. (5:24) It's also noted that the effect of oxytocin on trust is not due to a general increase in the (5:29) readiness to bear risks, on the contrary, oxytocin specifically affects an individual's willingness (5:35) to accept social risks arising through interpersonal interactions.
To sum up,
(5:40) oxytocin is like a kind of social glue that is helpful in social bonding. (5:46) Further research is needed to explore oxytocin and trust and how this hormone can be used to (5:51) strengthen our trust in others and even treat mental disorders (5:54) that specifically relate to deficiencies in social behavior. (6:01) That is the end of section 4. You now have half a minute to check your answers.

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