Digital SATReading and Writing: Information and IdeasMedium
A historian is examining primary sources related to the American industrial revolution. One document is a letter from a factory owner to a business partner, discussing the recent implementation of new machinery. The owner expresses concern about the initial cost but anticipates significant increases in production efficiency and eventual cost savings due to reduced labor needs. The owner also mentions a plan to reinvest some of the savings into expanding the factory. Based on this letter, what can most reasonably be inferred about the factory owner's primary economic motivation?
- ATo diversify the company's product line by producing new goods.
- BTo prioritize long-term profitability and business expansion over immediate expenses.
- CTo improve working conditions for employees by reducing their strenuous tasks.
- DTo comply with emerging government regulations regarding factory output.
Show answer & explanationAnswer & explanation
Correct answer: B. To prioritize long-term profitability and business expansion over immediate expenses.
The owner's concern about initial cost, anticipation of increased efficiency, cost savings from reduced labor, and plans for reinvestment and expansion all point to a primary motivation of long-term profitability and business growth.
Why the other options are wrong
- A. The letter discusses 'expanding the factory' and 'production efficiency' but not diversifying the product line.
- C. The letter focuses on 'reduced labor needs' and 'cost savings,' not on improving worker conditions.
- D. The letter does not mention any government regulations; the motivations are clearly internal business decisions.
Inference
A conclusion reached on the basis of evidence and reasoning, rather than explicit statements in the text.
- Requires reading between the lines.
- Must be supported by textual evidence, not just prior knowledge.
- Is a logical deduction from what is stated.
Memory trick: Read, Deduce, Confirm: Is the 'D'eduction solid?