PrepTest 126, Section 2, Question 27
In economics, the term "speculative bubble" refers to(462 more words not shown)
The phrase " standard pricing(18 more words not shown)
- Aagainst which other(6 more words not shown)
- Bthat conforms to(4 more words not shown)
- Cthat is merely(1 more words not shown)
- Dthat regularly recurs(5 more words not shown)
- Ethat serves as(2 more words not shown)
Reading the passage
Garber says a new, prized flower variety begins at a high price, then gets cheaper as reproduction makes it more available. Calling that a “standard pricing pattern” means it's the sort of thing that normally happens in these cases. He's describing a recurring market pattern, not announcing a rule prices ought to follow.
Working the answers
- A
A standard can mean a benchmark used for comparisons, but that isn't the job of the word here. Garber is describing what occurs as new varieties become available.
- B
No agreed-upon criterion is being applied. The pattern is observed in the market; we aren't told that prices satisfy a standard people have collectively set.
- C
Merely acceptable is an evaluation of quality. Garber isn't saying the pattern is just good enough.
- DCorrect
The pattern recurs with new flower varieties: initially expensive, then cheaper as they reproduce. This fits the surrounding explanation of why the tulip prices could follow ordinary fundamentals.
- E
An exemplar would be a model against which other pricing patterns might be judged. Garber isn't recommending this pattern as one to emulate. He's saying it normally occurs.
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