Set 14: Transitions (Advanced)
Explanation
PASSAGE
Prospect theory, developed by Kahneman and Tversky, demonstrates that people evaluate outcomes relative to a reference point rather than in absolute terms. A $100 loss feels more painful than a $100 gain feels pleasurable. _______ the same objective outcome can produce different responses depending on whether it is framed as a gain or a loss.
Which choice completes the text with the most logical transition?
Detailed Answer Explanation
This question asks you to choose the transition that best connects two ideas. The framing effect is a further implication of the reference point principle. 'By extension' shows how this follows from the core insight. Transitions signal the relationship between sentences or paragraphs. Determine the logical relationship (addition, contrast, cause-effect, example) and select the transition that accurately expresses it. The right transition makes the relationship between ideas crystal clear. Consider what logical connection exists: Is the second idea adding to the first? Contrasting it? Showing a result? The transition should accurately reflect this relationship.
Key Evidence:
• "evaluate outcomes relative to a reference point"
• "framed as a gain or a loss"
Why others are wrong: B (Contrast - framing effects confirm, not contradict, the theory.), A (Specific detail - this is an extension, not a particular case.), D (Surprise - this follows logically from the theory.).
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