1 . Directions: Fill in each blank with a proper word chosen from the box. Each word can be used only once. Note that there is one word more than you need.

A. justify B. trend   C. theory     D. restricted   E. diversifying F. obviously G. termed H. climate     I. suddenly     J. seeking   K. evident

The Lipstick Effect

In 2020, the world was plunged into an economic downturn as the COVID-19 pandemic caused widespread closures to businesses. Under these circumstances, millions of people     1     found themselves facing financial insecurity. During such times of economic hardship, one may naturally expect that consumer markets will see a decline in expenditure, as people everywhere feel     2     to making only “essential” purchases. However, a curious phenomenon known as the “lipstick effect” can often be observed.

The lipstick effect refers to the phenomenon of consumers spending on small luxury goods even when an economic depression occurs. This phenomenon was     3     the “lipstick effect” in 2001 by Leonard Lauder, chairman of luxury cosmetic company Estée Lauder. He had not only witnessed the phenomenon at work but also realized that it was especially     4     in the case of lipstick and other cosmetic products.

So, how exactly do consumers who are short of cash     5     making such purchases? First and perhaps most     6    , consumers may simply wish to give themselves treats now and again to provide distractions from their financial insecurity. Another     7     has to do with labour markets. Specifically, during the economic depression, job seeking tends to become more competitive. Thus, people     8     employment may perceive a need to spend money on certain products to improve their physical appearance. By using products such as lipstick, they may feel more confident during job interviews.

Whatever the causes of the lipstick effect, this phenomenon is no short-lived     9    . During the global depression of 2007-2009, sales of cosmetic in the United States increased by around 5%. Based on such data, it seems that even in the current insecure economic     10    , the luxury cosmetics industry is one that will be sticking around.