Monkey Economy - TOEFL Reading Practice Questions with Answer Key

Achieving proficiency in the TOEFL Reading section demands adept analytical abilities tailored for academic English content. This segment evaluates your capacity to comprehend main concepts, discern crucial information, make logical deductions, and navigate text organization. The key? Regular practice!

Therefore, we present you with our practice tests that closely replicate the format and style of the real exam, fostering familiarity and assurance for test day. Ready to achieve your target score in the TOEFL Reading section? Let's take this practice test focused on "Monkey Economy" to glean valuable insights into the structure and areas for enhancement!

Reading Instructions

• You have 15 minutes to read the following passage and answer all 9 questions related to it.  
• Most questions are worth 1 point, but the last question is worth more. The directions indicate how many points you will receive for that specific question. 
• The specific section/paragraphs have been provided again with the question for ease of understanding and quick solution.
• Some questions include a word or phrase that is highlighted in the question as well as in the paragraph for quick reference. 

Monkey Economy 

Directions: Once you have read the passage, answer the following questions.

Paragraph 1

Humans possess exceptional intelligence compared to other species on Earth, enabling remarkable achievements in technology and engineering. However, despite our cognitive abilities, why do we often succumb to making mistakes repeatedly? Primate Psychologist Laurie Santos and her team at Yale University's Comparative Cognition Lab pondered this question, especially in light of recent financial market collapses. Santos proposed two potential explanations: either humans create environments too complex for our full comprehension, or we are inherently predisposed biologically to making poor decisions.

1. Based on the passage, what inference can be made about the complexity of human decision-making processes?
   1. Human intelligence surpasses that of other species.
   2. Humans often make mistakes due to inherent biological predispositions.
   3. The financial market collapses were solely due to human error.
   4. Human decision-making may be influenced by both environmental complexity and biological factors.

1. What is the primary purpose of the paragraph?
   1. To explain the cognitive abilities of humans compared to other species
   2. To criticize the work of Primate Psychologist Laurie Santos
   3. To highlight the challenges of understanding human decision-making
   4. To convince readers of the superiority of human intelligence

Paragraph 3

The scientists were particularly intrigued by whether monkeys would exhibit similar decision-making errors in financial matters. To investigate this, they needed to familiarize the monkeys with the concept of currency. The monkeys quickly grasped the concept and, besides mastering simple exchange techniques, learned to differentiate between favorable deals. For instance, when one team member offered two grapes in exchange for a metal disc while another offered only one grape, the monkeys consistently chose the two-grape option. Intriguingly, upon comparing the monkeys' purchasing patterns with data on human economic behavior, the researchers found a perfect alignment.

1. According to Paragraph 3, what is the most appropriate synonym for the word "grasped"?
   1. Released
   2. Understood
   3. Ignored
   4. Misinterpreted

Paragraph 4

Having confirmed the efficacy of the monkey market, the team proceeded to introduce scenarios where humans commonly err. One such scenario involves risk assessment. Consider a scenario where you receive $1000, with the option to gain an additional $500 (A) or flip a coin for a chance to gain $1000 if it lands heads or receive nothing if it lands tails (B). Typically, individuals opt for Option A, preferring guaranteed earnings over potential losses. Now, envision a different scenario where you have $2000 and must choose between losing $500 (Option A) or risking a coin flip, where heads entail no loss and tails result in losing $1000 (Option B). Surprisingly, when facing potential losses, individuals tend to opt for the riskier Option B. This inclination contradicts conventional wisdom, as evidenced by the experiences of financial investors and gamblers, highlighting the imprudence of risk-taking during periods of losses.

1. Based on the passage, what can be inferred about human behavior in scenarios involving risk assessment?
   1. Humans consistently choose the option with the highest potential gain.
   2. Humans tend to avoid risky options regardless of the potential gains.
   3. Humans display different risk-taking tendencies depending on the circumstances.
   4. Humans always choose the option with guaranteed earnings to minimize potential losses.

1. In the context of the passage, what is the meaning of the word "efficacy"?
   1. Predictability
   2. Effectiveness
   3. Complexity
   4. Simplicity

Paragraph 5

Would the monkeys demonstrate the same cognitive bias? To assess this, the team devised similar scenarios for the monkeys. In the initial test, the monkeys were presented with two options: exchanging their disc for one grape plus an additional bonus grape or exchanging the disc for one grape with varying chances of receiving either two bonus grapes or none. Interestingly, like humans, the monkeys tended to opt for the less risky choice when resources were abundant. Subsequently, the experiment was reversed: monkeys were offered three grapes, but Option A guaranteed only two grapes, while Option B presented a fifty-fifty chance of receiving either three grapes or just one. The findings revealed that monkeys, akin to humans, exhibit a tendency to take more risks when resources are scarce.

1. In the initial test, what were the two options presented to the monkeys?
   1. One grape with varying chances of receiving either two bonus grapes or none, and one grape plus an additional bonus grape
   2. Two grapes with varying chances of receiving either three bonus grapes or none, and one grape plus an additional bonus grape
   3. Three grapes guaranteed, and two grapes with varying chances of receiving more or less
   4. Two grapes guaranteed, and three grapes with varying chances of receiving more or less

1. Based on the passage, what can be inferred about the monkeys' behavior when resources are abundant versus when they are scarce?
   1. Monkeys are more inclined to take risks when they have fewer resources, similar to humans.
   2. Monkeys prefer to take risks regardless of the abundance of resources, unlike humans.
   3. Monkeys avoid taking risks when resources are scarce, showing a different cognitive bias than humans.
   4. Monkeys do not exhibit any clear pattern in risk-taking behavior related to resource availability.

1. What can be inferred about the monkeys' understanding of risk and reward from the experiments?
   1. Monkeys, like humans, understand the concept of risk and prefer guaranteed rewards when resources are abundant.
   2. Monkeys are unable to comprehend the concept of risk and make random choices regardless of resource availability.
   3. Monkeys show no preference for risk or reward, indicating a lack of cognitive bias.
   4. Monkeys prefer risky choices when resources are abundant, unlike humans.

Paragraph 3

(A) The scientists were particularly intrigued by whether monkeys would exhibit similar decision-making errors in financial matters. (B) To investigate this, they needed to familiarize the monkeys with the concept of currency. (C) The monkeys quickly grasped the concept and, besides mastering simple exchange techniques, learned to differentiate between favorable deals. For instance, when one team member offered two grapes in exchange for a metal disc while another offered only one grape, the monkeys consistently chose the two-grape option. (D) Intriguingly, upon comparing the monkeys' purchasing patterns with data on human economic behavior, the researchers found a perfect alignment.

1. Directions: Review the excerpt from the passage provided above. The letters (A), (B), (C), and (D) denote where the subsequent sentence could be incorporated.
   
   The team then proceeded to design experiments that mirrored common human economic decisions.
   
   Where would the sentence most appropriately belong?
   1. Choice A
   2. Choice B
   3. Choice C
   4. Choice D

Hold on!  Before checking your answers and matching them, explore what is a good TOEFL score!

Answer Key with Explanation for TOEFL Reading Passage - Monkey Economy

1.  Answer: D
Explanation: This is an inference-type question. The correct option is D because the passage suggests that human decision-making is complex and influenced by a combination of factors. It mentions how humans and monkeys share similar cognitive biases, indicating that these biases are rooted in biological predispositions. Additionally, the passage references scenarios where humans typically err, pointing toward the environmental factors that influence decision-making. Options A, B, and C are incorrect as they either overstate the evidence (A and C) or focus too narrowly on biological predispositions without acknowledging the role of environmental complexity (B).

2. Answer: C
Explanation: This is a fact-based question. The correct option is C because the paragraph is structured to show how human decision-making is complex and fraught with biases. By drawing parallels between human and monkey behaviors, the text underscores the inherent challenges in understanding why humans often make irrational decisions. Option A is incorrect as the passage compares cognitive abilities rather than solely explaining them. Option B is incorrect as there is no criticism of Laurie Santos. Option D is also incorrect as the passage does not argue for the superiority of human intelligence but rather focuses on the complexities and biases in decision-making processes.

3. Answer: B
Explanation: The correct option is B) Understood. This is a vocabulary question. The word "grasped" in the context of the paragraph means to comprehend or understand something. The paragraph states that "The monkeys quickly grasped the concept," indicating that they quickly understood the idea of currency and how to use it effectively. Options A) Released, C) Ignored, and D) Misinterpreted are incorrect as they do not fit the context of the monkeys learning and comprehending the concept of currency.

4. Answer: C
Explanation: The correct option is C) Humans display different risk-taking tendencies depending on the circumstances. This is an inference type question. The passage describes how humans typically opt for a guaranteed gain over a risky one when resources are abundant, but when facing potential losses, they are more inclined to take risks. This indicates that human risk-taking behavior is influenced by the context, particularly whether they are facing gains or losses. Options A) Humans consistently choose the option with the highest potential gain, B) Humans tend to avoid risky options regardless of the potential gains, and D) Humans always choose the option with guaranteed earnings to minimize potential losses, do not accurately capture the nuanced behavior described in the passage. 

5. Answer: B
Explanation: The correct option is B) Effectiveness. This is a vocabulary question. In the passage, "efficacy" refers to the ability of the monkey market to produce the desired result, which is to replicate human-like decision-making errors in financial matters. The term "efficacy" is used to assess whether the setup successfully demonstrates the intended cognitive biases. Options A) Predictability, C) Complexity, and D) Simplicity do not accurately reflect the meaning of "efficacy" in this context, which specifically pertains to the effectiveness of the monkey market in achieving the researchers' objectives.

6. Answer: A
Explanation: The correct option is A) One grape with varying chances of receiving either two bonus grapes or none, and one grape plus an additional bonus grape. This is a fact-based question. The passage clearly states that in the initial test, monkeys had to choose between exchanging their disc for one grape plus an additional bonus grape or exchanging it for one grape with varying chances of receiving either two bonus grapes or none. Options B), C), and D) do not accurately reflect the options presented in the initial test as described in the passage.

7. Answer: A
Explanation: The correct option is A) Monkeys are more inclined to take risks when they have fewer resources, similar to humans. This is an inference question. The passage indicates that monkeys, like humans, tend to choose the less risky option when resources are abundant. However, when resources are scarce, monkeys exhibit a tendency to take more risks. This similarity to human behavior suggests that monkeys are more inclined to take risks when they have fewer resources. Options B), C), and D) do not align with the pattern of behavior described in the passage.

8. Answer: A
Explanation: The correct option is A) Monkeys, like humans, understand the concept of risk and prefer guaranteed rewards when resources are abundant. This is an inference question. The passage describes how monkeys tend to opt for the less risky choice when resources are abundant, indicating an understanding of risk and reward. When resources are scarce, they are more inclined to take risks, similar to human behavior. Options B), C), and D) do not accurately capture the monkeys' demonstrated understanding of risk and reward as described in the experiments.

9. Answer: B
Explanation: The correct option is B) Choice B. This is an Insert text question. The sentence "The team then proceeded to design experiments that mirrored common human economic decisions." logically fits after the initial intrigue about whether monkeys would exhibit similar decision-making errors in financial matters and before the explanation of how the scientists familiarized the monkeys with the concept of currency.

Option A would place the sentence before the introduction of the scientists' intrigue, which would be premature. Option C would place the sentence after describing the monkeys' grasp of currency, which would be out of sequence because the experiments are what allowed the researchers to see the monkeys' understanding. Option D would place the sentence after the comparison to human behavior, which would also be out of context because the experiments need to be introduced before discussing their outcomes.

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