What is this question based off of
Pragmatics
Pragmatists are interested in partial truths, often known as grey areas, as these have useful applications.
The hyphen (dash) does not need to be placed anywhere in that particular sentence, but it can be placed between "inner" and "city". You do however require commas in the sentence; "Basketball, which has long been thought to be an inner city game, is extremely popular in the suburbs."