Question 51·Hard·Cross-Text Connections
Text 1
Economist Lydia Ho contends that when governments offer even modest tax credits to offset the upfront costs of energy-efficient machinery, small-scale manufacturers adopt such machinery at dramatically higher rates. According to Ho, these businesses operate with narrow profit margins and therefore respond vigorously to any policy that slightly reduces initial expenditure.
Text 2
To test the influence of tax incentives on technology adoption, sociologist Javier Mendez tracked 240 small manufacturing firms over three years. Half the firms qualified for a tax credit covering 15% of the purchase price of certified energy-efficient machines, while the rest received no incentive. Mendez observed that 38% of credit-eligible firms ultimately bought at least one qualifying machine, compared with 34% of ineligible firms—a difference he deemed “statistically negligible.” Interviews revealed that limited technical expertise and uncertainty about future energy prices, not upfront cost, most often deterred adoption.
Based on Text 2, how would Mendez most likely respond to Ho’s contention in Text 1?
For cross-text connection questions, first summarize each author’s main point in your own words, especially any claims about cause-and-effect. Then determine whether the second text supports, qualifies, or challenges the first by citing specific evidence (numbers, conclusions, or stated reasons) from Text 2. Finally, choose the option that best reflects the second author’s likely response and eliminate choices that overread small differences, ignore the author’s stated conclusion, or introduce relationships not stated in either text.
Hints
Identify Ho’s main claim
Look at Text 1 and ask: What does Ho say causes small manufacturers to adopt energy-efficient machinery at dramatically higher rates?
Identify what mattered most in Mendez’s study
In Text 2, focus on the interviews and what firms reported as the main reasons they did not adopt energy-efficient machines. Were these reasons mainly about upfront cost or something else?
Compare the two perspectives
Does Mendez’s evidence strongly support Ho’s idea that tax credits dramatically change behavior, or does it challenge that idea? Which answer choice best captures how his findings relate to her explanation?
Step-by-step Explanation
Restate Ho’s claim in Text 1
Ho argues that even modest tax credits for energy-efficient machinery cause dramatically higher adoption by small manufacturers. She explains this by saying these firms have narrow profit margins and therefore respond strongly to any policy that slightly reduces their initial spending.
Summarize what Mendez actually found in Text 2
Mendez ran a study where half the firms got a 15% tax credit and half did not. Adoption rates were 38% for firms with the credit and 34% for those without it—a difference he calls “statistically negligible,” meaning the tax credit did not lead to dramatically higher adoption. In interviews, firms said the biggest deterrents were limited technical expertise and uncertainty about future energy prices, not the upfront cost.
Compare Mendez’s findings to Ho’s explanation
Ho claims tax credits (reducing upfront cost) strongly drive adoption because cost is the key issue. Mendez’s evidence shows something different: cost did not make a big difference in adoption, and other factors were more important barriers. So, if Mendez responded to Ho, he would say that focusing mainly on upfront cost misses what his research shows are the real obstacles.
Match this comparison to the answer choices
We need the option that says Mendez would see Ho as overemphasizing cost and tax credits and ignoring more important barriers like expertise and uncertainty. Choice D (“It overlooks more influential barriers than upfront cost, as evidenced by his study’s findings.”) says exactly that, so D is the correct answer.