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The economic report revealed that while venture capital firms struggled with limited returns from artificial intelligence startups, there has been...

GMAT Craft and Structure : (Structure) Questions

Source: Prism
Craft and Structure
Words in Context
HARD
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Notes
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The economic report revealed that while venture capital firms struggled with limited returns from artificial intelligence startups, there has been _______ funding directed toward traditional manufacturing innovations.

Which choice completes the text with the most logical and precise word or phrase?

A

decreased

B

hesitant

C

increased

D

competitive

Solution

Step 1: Decode and Map the Passage

Part A: Create Passage Analysis Table

Text from PassageAnalysis
'The economic report revealed that while venture capital firms struggled with limited returns from artificial intelligence startups,'
  • What it says: Econ report: VC firms + AI startups = poor returns.
  • What it does: Establishes context about one sector's financial performance.
  • What it is: Background/context
'[MISSING WORD]'
  • What it is: Missing logical connector
'there has been ____ funding directed toward traditional manufacturing innovations.'
  • What it says: Trad manufacturing = __ funding.
  • What it does: Presents contrasting information about a different sector.
  • What it is: Contrasting claim

Part B: Provide Passage Architecture & Core Elements

Main Point: An economic report shows contrasting funding patterns between AI startups and traditional manufacturing.

Argument Flow: The passage sets up a contrast structure, first establishing that venture capital firms had poor returns from AI startups, then indicating that traditional manufacturing experienced a different funding situation.

Step 2: Interpret the Question Precisely

This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.

Step 3: Prethink the Answer

  • The passage creates a 'while X... there has been Y' structure, which typically signals contrast
  • Since we know AI startups struggled with limited returns from VC firms, the logical contrast would be that traditional manufacturing had better or more funding success
Answer Choices Explained
A

decreased

✗ Incorrect
  • 'Decreased' would suggest traditional manufacturing also struggled with funding
  • This eliminates the contrast structure and makes the 'while' construction illogical
B

hesitant

✗ Incorrect
  • 'Hesitant' suggests uncertainty or reluctance in funding decisions
  • This doesn't create a clear contrast with AI's poor returns
C

increased

✓ Correct
  • 'Increased' creates the perfect contrast: while AI struggled, manufacturing got more funding
  • Fits the logical structure of the contrast perfectly
D

competitive

✗ Incorrect
  • 'Competitive' doesn't make grammatical sense in this context
  • The phrase 'competitive funding directed toward' is awkward and unclear
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