Reading comp PrepTest 157 · Section 4 · Question 14
Passage
Passage A Markets, such as stock exchanges, distill the collective wisdom of millions of individuals into a single number, and
Remaining source text redacted.
Passage walkthrough
Passage Summary Topic:
Social Science
Passage A
Paragraph 1
Passage B
Paragraph 1
Main Points?
Passage A: Markets, including prediction markets, reflect the collective knowledge of many investors with remarkable efficiency.
Passage B: Markets, including prediction markets, are not inherently reliable; instead, they merely reflect the majority opinion at any given time.
Key Lines?
Passage A: Paragraph 1, Sentence 2 (P1, S1) - Author's attitude toward markets
P1, S2 - Contrast to committees and polls
P2, S2 - Example of a reliable forecast market
P2, S5 - Illustration of efficiency
P2, S2 - Reason
P3, S1 - Another reason
Passage B: P1, S1 - Author's attitude toward markets
P2, S1 - Example of unreliable forecast market
P3, S1 - Comparison
P4, S2 - Author's explanation of markets' function
Meta-Structure? Relationship Between Passages?
Relationship - Opposing Viewpoints: The authors of these two passages have opposing viewpoints. The author of passage A places a lot of ... ahem ... stock into markets, particularly in their efficiency and accurate forecasting. In contrast, the author of passage B does not believe markets are inherently trustworthy or accurate predictors, instead claiming that they merely reflect the majority opinion at a given time. Even so, there are a few moments in which these authors find common ground. Both think forecast/prediction markets reflect what the market as a whole believes (PA, P2, S6; PB, P2, S2), and both think the requirement that you invest money into a market makes markets at least slightly more reliable than polls (PA, P1, S2; PB, P4, S4).
Example (Both): Both passages bring up an example — the same example, in fact — to prove a minor point. In passage A, the author cites the accuracy of the Iowa Electronic Markets to illustrate the reliability of markets, as opposed to polls (PA, P2, S2). In passage B, the author cites a recent election in which the Iowa Electronic Markets' forecast was inaccurate for nearly a year to illustrate how markets are not infallible (PB, P2). Since the same example is used in both passages — and both are used to support each passage's main point — we should expect at least one question about them.
Comparison (Both): Both passages compare markets to polls. And both claim that markets are at least somewhat more reliable than polls, as markets require people to back up their opinions with money (PA, P1, S2; PB, P4, S4). This is a point on which the authors agree, in passages in which they mostly disagree, so we should expect a question on this as well.
Last Thoughts?
This is a quintessential Opposing Viewpoint passage, so expect several questions about the authors’ disagreement, and at least one question about a point of agreement.
Social Science
Passage A
Paragraph 1
- Paragraph note
- Author: Efficiency of markets
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Comparison: Efficiency of markets (requires "hard dollars," rewards people who are "right") vs. committees/polls (doesn't require dollars, rewards loudest/most prestigious)
- Author's attitude: "amazing efficiency" (first sentence)
- Paragraph note
- of "forecast market"
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Example: Iowa Electronic Market (second through last sentence)
- Paragraph note
- Support: Market's efficiency
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Definition: Efficiency: Market learns what informed people know (first sentence)
- Example: Experiment with fictional stock and "insiders" (second through last sentence)
- Author's attitude: "lightning fast and very accurately" (first sentence)
Passage B
Paragraph 1
- Paragraph note
- Author: Markets not perfect
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Author's attitude: "not infallible" (first sentence), "get over it" (last sentence)
- Paragraph note
- Support: Iowa Electronic Market's inaccuracy
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Undermines Passage A, second paragraph
- Paragraph note
- Comparison to horseracing
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Comparison: Lower price of stock = greater odds for horse
- Paragraph note
- Author's correction: Prediction polls simply reflect majority opinion at a given time
- Views, minor Meta-Structures, points of intersection, and the author's attitude
- Similarity to passage A: Similar definition of "forecast" market from the second paragraph
- Similarity to passage A: claims that "entrance fees" of markets is an advantage over polls like passage A's author did in the first paragraph
- Author's attitude: "merely reflect" (first sentence), "does not imbue them with any special omniscience" (second sentence), "more serious responses," "just as potentially wrong" (third sentence)
Main Points?
Passage A: Markets, including prediction markets, reflect the collective knowledge of many investors with remarkable efficiency.
Passage B: Markets, including prediction markets, are not inherently reliable; instead, they merely reflect the majority opinion at any given time.
Key Lines?
Passage A: Paragraph 1, Sentence 2 (P1, S1) - Author's attitude toward markets
P1, S2 - Contrast to committees and polls
P2, S2 - Example of a reliable forecast market
P2, S5 - Illustration of efficiency
P2, S2 - Reason
P3, S1 - Another reason
Passage B: P1, S1 - Author's attitude toward markets
P2, S1 - Example of unreliable forecast market
P3, S1 - Comparison
P4, S2 - Author's explanation of markets' function
Meta-Structure? Relationship Between Passages?
Relationship - Opposing Viewpoints: The authors of these two passages have opposing viewpoints. The author of passage A places a lot of ... ahem ... stock into markets, particularly in their efficiency and accurate forecasting. In contrast, the author of passage B does not believe markets are inherently trustworthy or accurate predictors, instead claiming that they merely reflect the majority opinion at a given time. Even so, there are a few moments in which these authors find common ground. Both think forecast/prediction markets reflect what the market as a whole believes (PA, P2, S6; PB, P2, S2), and both think the requirement that you invest money into a market makes markets at least slightly more reliable than polls (PA, P1, S2; PB, P4, S4).
Example (Both): Both passages bring up an example — the same example, in fact — to prove a minor point. In passage A, the author cites the accuracy of the Iowa Electronic Markets to illustrate the reliability of markets, as opposed to polls (PA, P2, S2). In passage B, the author cites a recent election in which the Iowa Electronic Markets' forecast was inaccurate for nearly a year to illustrate how markets are not infallible (PB, P2). Since the same example is used in both passages — and both are used to support each passage's main point — we should expect at least one question about them.
Comparison (Both): Both passages compare markets to polls. And both claim that markets are at least somewhat more reliable than polls, as markets require people to back up their opinions with money (PA, P1, S2; PB, P4, S4). This is a point on which the authors agree, in passages in which they mostly disagree, so we should expect a question on this as well.
Last Thoughts?
This is a quintessential Opposing Viewpoint passage, so expect several questions about the authors’ disagreement, and at least one question about a point of agreement.
Question prompt
The relation between the
Remaining source text redacted.
Why the credited answer is right
Credited answer: B
The notes below walk through why it fits the stem and how to eliminate the rest.
Question Type
Social Science
Answer choices
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Aa typewriter and a Remaining source text redacted.
Why choice A is not credited
What are the differences between a typewriter and a word processor? A typewriter is slower, older, and produces more permanent outcomes than a word processor. This doesn't reflect the contrast in how knowledge is described in the two passages, so this is incorrect. -
Ba thermostat and a Remaining source text redacted.
Why choice B matches the stem
Question Type: Application/Analogous
Strategy Overview:
Review the relevant part of the passage and notes, if necessary, to anticipate key features of the passages' conception of how markets handle knowledge
Answer Anticipation:
Before going to the answer choices, it can help to recall how each passage illustrates how markets handle knowledge. Passage A discusses this topic in its third paragraph. There, the author describes an experiment in which only a few traders in a fictional market were given inside knowledge. Even though no one else knew who these "insiders" were, everyone watched the movements of the market price. As a result, everyone quickly began buying and selling as if they also possessed this inside knowledge. In passage A's conception knowledge spreads and can affect how markets perform.
The reference to knowledge in passage B is slightly more obscure. But recall the passage's main point: markets merely reflect the majority opinion at any given time. So "knowledge" is equivalent to "opinion" in passage B. And the markets just track what those opinions are at any given time.
So, in passage A's conception, knowledge is something that can produce a change in the market; in passage B, knowledge is just something measured by the markets. We should look for an answer choice that presents two items that reflect this dichotomy.
Answer Choice Explanation:
What's the difference between a thermostat and a thermometer? A thermostat produces changes in the temperature, while a thermometer merely records the current temperature. This is very similar to how each passage characterizes knowledge. Passage A argues that knowledge can change the market, while passage B thinks markets are a mere measurement of knowledge. This is the correct answer.
Key Takeaway:
This is arguably a poorly written question, as familiarity with thermostats is essential to selecting the correct answer. However, even if you didn't know what a thermostat is, you could still hazard a promising guess. Notice how all four incorrect answer choices presented an older and a newer way to accomplish the same result. Knowing that the conception of knowledge in these passages had nothing to do with old vs. new — heck, simply knowing that (B) was unique, in this way — should lead us to go with (B). -
Ca bicycle and a Remaining source text redacted.
Why choice C is not credited
What's the difference between a bicycle and a motorcycle? Bicycles are older, slower, safer, and powered by the user rather than by gasoline or electricity. This doesn't reflect the contrast in how knowledge is described in the two passages, so this is incorrect. -
Da news broadcast and Remaining source text redacted.
Why choice D is not credited
What's the difference between a news broadcast and a magazine? News broadcasts, unlike magazines, are a more recent medium, include an audio and televisual component, and are more responsive. This doesn't reflect the contrast in how knowledge is described in the two passages, so this is incorrect -
Ea digital camera and Remaining source text redacted.
Why choice E is not credited
What's the difference between a digital camera and film camera? Digital cameras are newer, feature more storage, and provide more immediate and malleable results. This doesn't reflect the contrast in how knowledge is described in the two passages, so this is incorrect
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Discussion
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Answer explanation? 3 replies
Started by jordierose02
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Explanation 4 replies
Started by Cpilgrim