4

Set 1: Words in Context (Advanced)

Explanation

Answer: B

PASSAGE

The study suggests that the correlation between wealth and happiness is not linear; beyond a certain threshold of financial security, the returns on additional income become ______.

Which choice completes the text with the most logical and precise word or phrase?

A. exponential
B. diminishing✓ Correct
C. absolute
D. unprecedented

Detailed Explanation

If the correlation is 'not linear' and stops increasing as much after a threshold, the returns are getting smaller. 'Diminishing' returns is a standard economic concept where benefit decreases as investment increases beyond a point.

Key Evidence:

• "not linear"

• "beyond a certain threshold"

Why others are wrong: A (Exponential means increasing rapidly.), C (Absolute means total or strict.), D (Unprecedented means never done before.).

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