Critical reading — Pyramid scheme passage: identify the best-supported inference Originating in the 1920s, the pyramid scheme is described as a con in which early joiners may profit, persuading friends and relatives, while the originator pockets money and disappears when the scheme collapses. Which statement is best supported by the paragraph?
Logical Reasoning
Analyzing Arguments
Difficulty: Easy
Choose an option
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AIt is fairly easy to spot a pyramid scheme while it is forming.
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BThe first customer of a pyramid scheme is the most gullible person involved.
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CThe people who set up pyramid schemes are able to fool honest people.
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DPyramid schemes peaked in the 1920s and have only recently returned.
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EThe term “pyramid scheme” was chosen strictly because of its geometric structure.
Answer
Correct Answer: The people who set up pyramid schemes are able to fool honest people.
Explanation
Introduction / Context:This reading-comprehension item asks you to choose the inference that is most directly supported by the passage. The paragraph outlines how a pyramid scheme works, who gets drawn in, and how the scam ends. The correct choice must align closely with these details without adding new claims or speculations not present in the text.
Given Data / Assumptions:
- Pyramid schemes date back at least to the 1920s.
- Honest people are often drawn in, believing the scheme is legitimate.
- The first participant may make money and then convinces others to join.
- The organizer pockets the funds rather than investing them and then vanishes.
- The scheme ultimately collapses, leaving later participants with losses.
Concept / Approach:
- Select the statement that mirrors the passage’s explicit claims or unavoidable implications.
- Discard options that make claims about ease of detection, historical trends, or naming origins that are not discussed.
Step-by-Step Solution:
Identify who is targeted: the text says “honest people are often pulled in.”Identify the mechanism: early success leads to social persuasion of friends and family.Identify the organizer’s behavior: pockets money and disappears, confirming deceptive intent.Therefore, the scammer’s ability to deceive honest people is directly supported.Verification / Alternative check:
Cross-check each option against the text. Only the claim that organizers fool honest people is explicitly supported; others add details not mentioned.Why Other Options Are Wrong:
It is fairly easy to spot…: The passage never says detection is easy.The first customer is most gullible: The text notes the first customer profits; gullibility is not asserted.Peaked in 1920s / comeback: No trend data are provided.Name derived from structure: The origin of the name is not addressed.Common Pitfalls:
Choosing an answer that sounds reasonable but is not stated. Stick to what the paragraph actually supports.Final Answer:
The people who set up pyramid schemes are able to fool honest people.