Set 8: Words in Context (Intermediate)
Explanation
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?
Detailed Answer Explanation
This question asks for the meaning of a word as used in this specific context. 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. Words can have multiple meanings, and context determines which meaning applies. Read the surrounding sentences carefully. Substitute each answer choice to see which maintains the intended meaning and fits the context. Many vocabulary words have multiple dictionary definitions, but only one fits the context. Use the surrounding sentences as clues. Try substituting each answer choice to see which one preserves the author's intended meaning without changing the sentence's message.
Key Evidence:
• "not linear"
• "beyond a certain threshold"
Why others are wrong: C (Absolute means total or strict.), D (Exponential means increasing rapidly.), B (Unprecedented means never done before.).
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