OG Test 1 - Reading 2

Questions 11-21 are based on the following passage.

This passage is adapted from Francis J. Flynn and Gabrielle S. Adams, "Money Can't Buy Love: Asymmetric Beliefs about Gift Price and Feelings of Appreciation." ©2008 by Elsevier Inc.
Every day, millions of shoppers hit the stores in
full force-both online and on foot-searching
frantically for the perfect gift. Last year, Americans
Linespent over $30 billion at retail stores in the month of
5December alone. Aside from purchasing holiday
gifts, most people regularly buy presents for other
occasions throughout the year, including weddings,
birthdays, anniversaries, graduations, and baby
showers. This frequent experience of gift-giving can
10engender ambivalent feelings in gift-givers. Many
relish the opportunity to buy presents because
gift-giving offers a powerful means to build stronger
bonds with one`s closest peers. At the same time,
many dread the thought of buying gifts; they worry
15that their purchases will disappoint rather than
delight the intended recipients.
Anthropologists describe gift-giving as a positive
social process, serving various political, religious, and
psychological functions. Economists, however, offer
20a less favorable view. According to Waldfogel (1993),
gift-giving represents an objective waste of resources.
People buy gifts that recipients would not choose to
buy on their own, or at least not spend as much
money to purchase (a phenomenon referred to as
25``the deadweight loss of Christmas"). To wit, givers
are likely to spend $100 to purchase a gift that
receivers would spend only $80 to buy themselves.
This ``deadweight loss" suggests that gift-givers are
not very good at predicting what gifts others will
30appreciate. That in itself is not surprising to social
psychologists. Research has found that people often
struggle to take account of others` perspectives-
their insights are subject to egocentrism, social
projection, and multiple attribution errors.
35What is surprising is that gift-givers have
considerable experience acting as both gift-givers and
gift-recipients, but nevertheless tend to overspend
each time they set out to purchase a meaningful gift.
In the present research, we propose a unique
40psychological explanation for this overspending
problem-i.e., that gift-givers equate how much they
spend with how much recipients will appreciate the
gift (the more expensive the gift, the stronger a
gift-recipient`s feelings of appreciation). Although a
45link between gift price and feelings of appreciation
might seem intuitive to gift-givers, such an
assumption may be unfounded. Indeed, we propose
that gift-recipients will be less inclined to base their
feelings of appreciation on the magnitude of a gift
50than givers assume.
Why do gift-givers assume that gift price is closely
linked to gift-recipients` feelings of appreciation?
Perhaps givers believe that bigger (i.e., more
expensive) gifts convey stronger signals of
55thoughtfulness and consideration.According to
Camerer (1988) and others, gift-giving represents a
symbolic ritual, whereby gift-givers attempt to signal
their positive attitudes toward the intended recipient
and their willingness to invest resources in a future
60relationship. In this sense, gift-givers may be
motivated to spend more money on a gift in order to
send a "stronger signal" to their intended recipient.
As for gift-recipients, they may not construe smaller
and larger gifts as representing smaller and larger
65signals of thoughtfulness and consideration.
The notion of gift-givers and gift-recipients being
unable to account for the other party`s perspectives
seems puzzling because people slip in and out of
these roles every day, and, in some cases, multiple
70times in the course of the same day. Yet, despite the
extensive experience that people have as both givers
and receivers, they often struggle to transfer
information gained from one role (e.g., as a giver)
and apply it in another, complementary role (e.g., as
75a receiver). In theoretical terms, people fail to utilize
information about their own preferences and
experiences in order to produce more efficient
outcomes in their exchange relations. In practical
terms, people spend hundreds of dollars each year on
80gifts, but somehow never learn to calibrate their gift
expenditures according to personal insight.

Question 11

The authors most likely use the examples in lines 1–9 of the passage ("Every...showers") to highlight the

  • A regularity with which people shop for gifts.

  • B recent increase in the amount of money spent on gifts.

  • C anxiety gift shopping causes for consumers.

  • D number of special occasions involving gift-giving.

Question 12

In line 10, the word "ambivalent" most nearly means

  • A unrealistic.

  • B conflicted.

  • C apprehensive.

  • D supportive.

Question 13

The authors indicate that people value gift-giving because they feel it

  • A functions as a form of self-expression.

  • B is an inexpensive way to show appreciation.

  • C requires the gift-recipient to reciprocate.

  • D can serve to strengthen a relationship.

Question 14

Which choice provides the best evidence for the answer to the previous question?

  • A lines 10-13("Many...peers")

  • B lines 22-23("People...own")

  • C lines 31-32("Research...perspectives")

  • D lines 44-47("Although...unfounded")

Question 15

The "social psychologists" mentioned in paragraph 2 (lines 17–34) would likely describe the "deadweight loss" phenomenon as

  • A predictable.

  • B questionable.

  • C disturbing.

  • D unprecedented.

Question 16

The passage indicates that the assumption made by gift-givers in lines 41-44 may be

  • A insincere.

  • B unreasonable.

  • C incorrect.

  • D substantiated.

Question 17

Which choice provides the best evidence for the answer to the previous question?

  • A lines 53-55("Perhaps . . . consideration")

  • B lines 55-60("According . . . relationship")

  • C lines 63-65("As . . . consideration")

  • D lines 75-78("In . . . relations")

Question 18

As it is used in line 54, "convey" most nearly means

  • A transport.

  • B counteract

  • C exchange

  • D communicate

Question 19

The authors refer to work by Camerer and others (line 56)in order to

  • A offer an explanation.

  • B introduce an argument.

  • C question a motive.

  • D support a conclusion.

Question 20

The graph following the passage offers evidence that gift-givers base their predictions of how much a gift will be appreciated on

  • A the appreciation level of the gift-recipients.

  • B the monetary value of the gift.

  • C their own desires for the gifts they purchase.

  • D their relationship with the gift-recipients.

Question 21

The authors would likely attribute the differences in gift-giver and recipient mean appreciation as represented in the graph to

  • A an inability to shift perspective.

  • B an increasingly materialistic culture.

  • C a growing opposition to gift-giving.

  • D a misunderstanding of intentions.


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