Set 4: Inferences (Advanced)
Explanation
PASSAGE
Economists distinguish between 'stated preferences'—what people say they value—and 'revealed preferences'—what their behavior shows they value. Surveys may find that consumers claim to prioritize sustainability, but purchasing data often shows they buy cheaper options. The discrepancy raises questions about whether attitudes or actions better represent true preferences.
What conceptual problem does the discrepancy pose?
Detailed Explanation
This question asks you to draw a logical conclusion from the text. 'Attitudes or actions' better represent 'true' preferences = divergence complicates definition. A valid inference must be supported by evidence in the passage, even if not stated directly. Look for clues in the text that strongly suggest the answer. Avoid conclusions that require assumptions beyond what's written. Valid inferences are strongly supported by multiple pieces of evidence in the text. Be cautious of choices that go too far beyond what the passage actually states. The best inference is the one most directly supported by textual evidence.
Key Evidence:
• "raises questions about whether attitudes or actions better represent true preferences"
Why others are wrong: B (Surveys diverge from behavior.), C (Purchasing data reveals preferences.), D (They claim to prioritize it in surveys.).