What can be reasonably inferred from the passage discussion in the second paragraph regarding studies before 1920?

• A. Economic studies that provided empirical data about expenditures
• B. Methods available for accurately comparing the standards of living of different social groups
• C. Studies designed to assess the economic effect of changes in industrial production
• D. Nationwide studies of the expenditures of all social groups in an industrial economy

Answer: (D)

The inference that can be drawn about studies before 1920 relates to the scope of research conducted during that time, specifically regarding who was studied and the breadth of the studies. In this context, the passage likely discusses how prior studies focused on the expenditures of various social groups, encompassing a broad population across an industrial economy. This broad approach aligns with the understanding that these studies aimed to provide comprehensive insights into how different groups allocated their resources, which speaks to the extensive nature of these economic studies during that period.

It's important to recognize that the passage does not focus on the specific methodologies used for comparison or the nuanced effects of industrial production changes, which would be more specialized topics that might not encapsulate the general nature of pre-1920 studies as effectively. Thus, the emphasis on studying expenditures across differing social groups provides a solid basis for identifying the correct inference.