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?

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:

Verification / Alternative check:

Why Other Options Are Wrong:

Common Pitfalls:

Final Answer: