Question

read the following excerpt from levitt and dubners freakonomics.
the data also show that smaller offices are more honest than big ones. an office with a few dozen employees generally outpays by 3 to 5 percent an office with a few hundred employees. this may seem counterintuitive. in a bigger office, a bigger crowd is bound to converge around the bagel table, providing more witnesses to make sure you drop your money in the box. but in the big - office/small - office comparison, bagel crime seems to mirror street crime. there is far less street crime per capita in rural areas than in cities, in large part because a rural criminal is more likely to be known (and therefore caught). also, a smaller community tends to exert greater social incentives against crime, the main one being shame.
which idea from this paragraph supports the claim that \smaller offices are more honest than big ones\?

• small offices generally pay better than larger offices.
• large communities tend to have less crime.
• large offices gather around the breakfast table.
• small communities have more incentives against crime.

Explanation:

1. Analyze Option 1: The passage says smaller offices "outpay" (in terms of bagel payment honesty - outpaying by 3 - 6% in terms of honesty - not actual pay), so this misinterprets "outpays" and is wrong.
2. Analyze Option 2: The passage states rural areas (smaller communities) have less street crime per capita than cities (larger communities), so this is the opposite of what's supported and wrong.
3. Analyze Option 3: The passage says "in a bigger office, a bigger crowd is bound to converge around the bagel table" but this is presented as a seeming counterintuitive point that doesn't support the honesty claim (it's a contrast to the actual conclusion), so wrong.
4. Analyze Option 4: The passage says "a smaller community tends to exert greater social incentives against crime, the main one being shame" and compares this to the office situation (smaller offices - like smaller communities - having more honesty). This idea supports the claim as it shows smaller groups (offices) have more incentives against crime (which relates to honesty).

Answer:

Small communities have more incentives against crime.