PrepTest 113, Section 1, Question 23
Recent investigations into the psychology of decision making(450 more words not shown)
The question in the second(8 more words not shown)
- Athe introduction to(14 more words not shown)
- Ba rhetorical question(14 more words not shown)
- Cthe basis for(18 more words not shown)
- Da suggestion that(16 more words not shown)
- Ea transitional device(19 more words not shown)
Reading the passage
The $100 question lets us see how people respond to a gamble. They commonly want a much larger possible gain before accepting the possible loss. That fits the older view: people avoid risk unless the reward makes it worth taking.
What we’re looking for
The later sure-loss scenario adds a qualification. Don't assign that later job to this earlier example.
Working the answers
- A
We're asked to consider a hypothetical gamble, but its purpose isn't to show wide variation among people. The following sentences describe a common response.
- B
The response agrees with the earlier view, rather than conflicting with it. Wanting a large prize before risking a loss illustrates risk aversion.
- CCorrect
The question sets up a concrete situation in which the older account works. Subjects generally require an attractive potential reward before gambling. “Some types of situations” leaves room for the later finding about gambling to avoid a sure loss.
- D
The difference between measurable outcomes and subjective value isn't being dismissed as unreal. The pain of losing helps explain why a small possible gain isn't enough for these subjects.
- E
The question develops an example; it isn't just a bridge to the new findings. The turn toward the sure-loss scenario comes later, with “Nevertheless.”
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