SAT Reading & Writing Practice Set 14

The global economy, an intricate web of trade, finance, and commerce, often exhibits signs of _______ fluctuations based on geopolitical events, natural disasters, or technological advancements. Predicting these changes is both art and science.

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

Historical analyses of ancient civilizations frequently illuminate patterns of trade, warfare, and societal evolution. In contrast, the socio-cultural practices of these societies, such as rites, rituals, and folktales, often remain enshrouded in ambiguity. Yet, these esoteric traditions provide invaluable windows into the psyches of bygone populations, revealing much about their deepest fears, aspirations, and worldviews. Scholars, through rigorous ethnographic studies, attempt to decode these traditions, offering contemporary audiences a glimpse into ancient societal mores.

Which choice best states the function of the underlined sentence in the text as a whole?

Passage 1

The intricacies of fiscal policy, especially in an era where globalization is profoundly reshaping economic landscapes, are not to be understated. Consider, for instance, the ephemeral nature of capital flows which, when unbridled, can lead to volatile economic climates, often exacerbating recessions. Many economists, rooted in the Keynesian tradition, advocate for stringent regulation of these flows, ensuring that economies remain insulated from unpredictable global shifts. Such an approach, while seemingly antithetical to laissez-faire capitalism, is essential in preserving the integrity of national economies, especially those of developing nations.

Passage 2

Modern economies, as they grapple with the consequences of unfettered globalization, often face a conundrum. On one hand, the allure of unrestricted capital flows promises rapid economic growth and prosperity. On the other, the accompanying volatility can be detrimental. While the Keynesian paradigm suggests cloistering economies from such volatilities through regulation, it’s imperative to recognize the benefits of a free market system. Restrictive measures can stifle innovation and deter foreign investments, potentially stagnating an economy. Striking a balance, therefore, is crucial.

Based on the given passages, which statement best describes a point of contention between the authors of Passage 1 and Passage 2 regarding fiscal policy in the face of globalization?

Passage 1

In the lexicon of neoclassical economics, the assumption of ‘rational actors’ is sacrosanct. These actors, according to staunch neoclassical purists, are invariably guided by self-interest, striving to maximize their utility in a world of scarcity. The result is an equilibrium wherein supply meets demand at an optimal price point. Yet, many contemporaneous thinkers have critiqued this worldview, positing that the human psyche, with its panoply of emotions and biases, seldom behaves in strictly rational ways. Factors such as societal norms, behavioral idiosyncrasies, and even irrational exuberance can skew this pristine economic model.

Passage 2

Behavioral economics has ascended the academic echelons, challenging traditional economic models that have long dominated the discourse. At its heart, behavioral economics acknowledges the quixotic nature of human decision-making. It is a repudiation of the notion that individuals are consistently rational, devoid of biases or emotions. Instead, behavioral theorists argue that our decisions are frequently influenced by a mélange of cognitive biases, heuristics, and societal imperatives. This, in turn, has profound implications for understanding market dynamics and predicting consumer behavior.

Based on the perspectives elucidated in the passages, with respect to which statement would the author of Passage 1 most likely disagree with the author of Passage 2, regarding human decision-making in economic contexts?

In the intricate tapestry of global finance, the concept of neo-monetary fluidity stands juxtaposed with classical pecuniary paradigms. Historically, liquid assets adhered to predictable channels of flow, delineated largely by geopolitical exigencies and dictated by centralized fiscal authorities. However, the advent of digital currencies and decentralized finance, abbreviated as DeFi, has engendered a paradigmatic shift. This nascent financial model, emancipated from the tethering of traditional banking edifices, has proffered an arena for instantaneous, borderless transactions. Yet, while these innovations evoke a sense of unfettered financial liberation, they also plunge the domain into realms of unforeseen volatility. One cannot overlook the perturbations that these uncharted fiscal waters might usher, challenging the erstwhile stable notions of wealth, solvency, and economic equilibrium.

What can be inferred about the implications of the emergence of digital currencies and decentralized finance on global finance?

In the sprawling tapestry of global economic paradigms, the ephemeral dance of currency values continually perplexes financial savants. The ethereal fluctuation of these currencies, often obfuscated by transitory market sentiments, bears an uncanny resemblance to the capricious nature of Baroque art. Delving deeper, the art of economic prediction is not so much a science as it is an interpretation of kaleidoscopic patterns, much like discerning the variegated hues in a Byzantine mosaic. Indeed, the financial world, with its myriad intricacies, can be viewed as an expansive gallery where every fiscal decision is analogous to a painter’s brushstroke, shaping the overarching narrative and influencing the global economic portrait.

Which one of the following statements, if true, would be the most direct extension of the arguments in the passage?

In the panoramic landscape of philosophy, discussions surrounding the immutable nature of existential truths have captivated scholars since antiquity. The ‘Metaphysical Construct’, a lesser-known doctrine, avers that existential realities are neither transient nor shifting but are rather embedded in the continuum of the cosmos. A secondary school of thought, often described as the ‘Temporal Paradigm’, advocates that existential verities are fleeting, deeply intertwined with the epoch they emerge from. In essence, while the former perceives existence as a fixed tapestry woven into the vast expanse of the universe, the latter envisions it as ephemeral footnotes within ever-changing chapters of cosmic history.

Which of the following can be most accurately inferred from the passage?

The Keynesian economic theory, formulated during the tumultuous years of the Great Depression, ______ governments to actively participate in regulating economies to manage demand and prevent economic downturns.

Which choice completes the text so that it conforms to the conventions of Standard English?

Existentialism, a philosophical stance ______, posits that individuals are free and responsible agents determining their own development through acts of the will.

Which choice completes the text so that it conforms to the conventions of Standard English?

In ancient Mesopotamia, the cuneiform script, a system of writing using wedge-shaped symbols ______ was revolutionary for its time. This early form of writing paved the way for more advanced systems.

Which choice completes the text so that it conforms to the conventions of Standard English?

While diving deep into the annals of economic theory, Mark found these points of interest:

• Geoffrey Keynes was a renowned British economist.
• His theories were integral to shaping economic policies in the mid-20th century.
• Many of his works revolved around government intervention in markets.
• His paper ‘Economic Webs’ (1952) examined the role of governments in free markets.
• Another paper, ‘Market Dynamics’ (1955), explored the interplay of private enterprises and government regulations.

Mark desires to underscore a thematic link between the two papers. Which option employs the pertinent details from the notes to fulfill this purpose most effectively?

In her studies of literature, Anna came across insights about:

• Dr. Walter Hennessey, a pioneer of neo-modernist poetry.
• His writings have been recognized in France, Argentina, India, and South Korea.
• Hennessey’s poems often use nature as an allegory for human emotions.
• His anthology, ‘Whispers of Willow’ (1997), draws parallels between trees and human despair.
• ‘Dawn’s Dew’ (2000) employs the metaphor of morning dew to depict fleeting joy.

Anna intends to highlight a shared thematic element between the two anthologies. Which choice utilizes the relevant insights from her studies to most effectively accomplish this?