Set 8: Transitions (Advanced)
Explanation
PASSAGE
Behavioral economists have documented numerous cognitive biases that affect decision-making. Loss aversion leads people to fear losses more than they value equivalent gains. _______ the sunk cost fallacy causes people to continue investing in failing projects simply because they've already committed resources.
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. Both are examples of cognitive biases affecting decision-making. 'Likewise' shows the sunk cost fallacy is another similar example. 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:
• "cognitive biases"
• "Loss aversion"
• "sunk cost fallacy"
Why others are wrong: A (Alternative - this is an additional example, not a replacement.), B (Cause/effect - sunk cost fallacy isn't caused by loss aversion.), D (Contrast - both are examples of irrational decision-making.).
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