858+ CAT Reading Comprehension Questions With Video Solutions PDF

Reading comprehension is an integral part of the VARC section of CAT. In the CAT exam, you will be given a passage followed by the questions asked based on the given passage. Practice the following CAT Reading comprehension sets from previous papers with detailed video solutions. Take them in a test format, or download all the questions in a PDF format. To get more detailed understanding go across CAT Previous Papers where you get a fair understanding of the exam. You can also get better understanding of these type of questions by taking numerous CAT mock tests. Click on the below link to download CAT reading comprehension questions with video solutions PDF for free. The best part is that the CAT experts explain all the questions in detail in the video solutions.

Mistakes To Avoid

Speed reading: Avoid speed reading, skimming, surfing, and other gimmicky techniques while taking an RC.

Reading the questions first: Reading the questions first will not be a good idea. Read the passage first and assimilate the information before moving on to the questions.

Maintain objectivity: Do not let your knowledge of a topic interfere with the information provided in the passage.

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    CAT Reading Comprehension Questions Weightage Over Past 6 Years

    Year

    Weightage (No. of  Questions)

    202516
    202416
    202316

    2022

    16

    2021

    16

    2020

    16

    Tips to Improve Reading Comprehension for CAT

    Develop a Reading Habit: Read as much and as frequently as possible. A proper reading habit will strengthen your vocabulary and rapidly develop your comprehension capability.

    Start Reading That Makes You Interested: You must persistently maintain your initial reading streak and let it form a routine.

    Write the summary: To summarize what the article intends to convey in your own words. Analyze why the author has included the paragraph in the passage and how the paragraph is linked to the central idea of the RC passage

      CAT 2025 Reading Comprehension questions

      Instruction for set 1:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      In 1982, a raging controversy broke out over a forest act drafted by the Government of India. This act sought to strengthen the already extensive powers enjoyed by the forest bureaucracy in controlling the extraction, disposal and sale of forest produce. It also gave forest officials greater powers to strictly regulate the entry of any person into reserved forest areas. While forest officials justified the act on the grounds that it was necessary to stop the continuing deforestation, it was bitterly opposed by representatives of grassroots organisations, who argued that it was a major violation of the rights of peasants and tribals living in and around forest areas. . . .

      The debate over the draft forest act fuelled a larger controversy over the orientation of state forest policy. It was pointed out, for example, that the draft act was closely modelled on its predecessor, the Forest Act of 1878. The earlier Act rested on a usurpation of rights of ownership by the colonial state which had little precedent in precolonial history. It was further argued that the system of forestry introduced by the British—and continued, with little modification, after 1947 —emphasised revenue generation and commercial exploitation, while its policing orientation excluded villagers who had the most longstanding claim on forest resources. Critics called for a complete overhaul of forest administration, pressing the government to formulate policy and legislation more appropriate to present needs. . . .

      That debate is not over yet. The draft act was shelved, though it has not as yet been formally withdrawn. Meanwhile, the 1878 Act (as modified by an amendment in 1927) continues to be in operation. In response to its critics, the government has made some important changes in forest policy, e.g., no longer treating forests as a source of revenue, and stopping ecologically hazardous practices such as the clearfelling of natural forests. At the same time, it has shown little inclination to meet the major demand of the critics of forest policy—namely, abandoning the principle of state monopoly over forest land by handing over areas of degraded forests to
      individuals and communities for afforestation.

      . . . [The] 1878 Forest Act itself was passed only after a bitter and prolonged debate within the colonial bureaucracy, in which protagonists put forward arguments strikingly similar to those being advanced today. As is well known, the Indian Forest Department owes its origin to the requirements of railway companies. The early years of the expansion of the railway network, c. 1853 onwards, led to tremendous deforestation in peninsular India owing to the railway's requirements of fuelwood and construction timber. Huge quantities of durable timbers were also needed for use as sleepers across the newly laid tracks. Inexperienced in forestry, the British called in German experts to commence systematic forest management. The Indian Forest Department was started in 1864, with Dietrich Brandis, formerly a Lecturer at Bonn, as the first Inspector General of Forests. The new department needed legislative backing to function effectively, and in the following year, 1865, the first forest act was passed. . . .

      Question 1

      Which one of the following best encapsulates the reason for the “raging controversy” developing into a “larger controversy”?

      Show Answer Explanation

      Instruction for set 1:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      In 1982, a raging controversy broke out over a forest act drafted by the Government of India. This act sought to strengthen the already extensive powers enjoyed by the forest bureaucracy in controlling the extraction, disposal and sale of forest produce. It also gave forest officials greater powers to strictly regulate the entry of any person into reserved forest areas. While forest officials justified the act on the grounds that it was necessary to stop the continuing deforestation, it was bitterly opposed by representatives of grassroots organisations, who argued that it was a major violation of the rights of peasants and tribals living in and around forest areas. . . .

      The debate over the draft forest act fuelled a larger controversy over the orientation of state forest policy. It was pointed out, for example, that the draft act was closely modelled on its predecessor, the Forest Act of 1878. The earlier Act rested on a usurpation of rights of ownership by the colonial state which had little precedent in precolonial history. It was further argued that the system of forestry introduced by the British—and continued, with little modification, after 1947 —emphasised revenue generation and commercial exploitation, while its policing orientation excluded villagers who had the most longstanding claim on forest resources. Critics called for a complete overhaul of forest administration, pressing the government to formulate policy and legislation more appropriate to present needs. . . .

      That debate is not over yet. The draft act was shelved, though it has not as yet been formally withdrawn. Meanwhile, the 1878 Act (as modified by an amendment in 1927) continues to be in operation. In response to its critics, the government has made some important changes in forest policy, e.g., no longer treating forests as a source of revenue, and stopping ecologically hazardous practices such as the clearfelling of natural forests. At the same time, it has shown little inclination to meet the major demand of the critics of forest policy—namely, abandoning the principle of state monopoly over forest land by handing over areas of degraded forests to
      individuals and communities for afforestation.

      . . . [The] 1878 Forest Act itself was passed only after a bitter and prolonged debate within the colonial bureaucracy, in which protagonists put forward arguments strikingly similar to those being advanced today. As is well known, the Indian Forest Department owes its origin to the requirements of railway companies. The early years of the expansion of the railway network, c. 1853 onwards, led to tremendous deforestation in peninsular India owing to the railway's requirements of fuelwood and construction timber. Huge quantities of durable timbers were also needed for use as sleepers across the newly laid tracks. Inexperienced in forestry, the British called in German experts to commence systematic forest management. The Indian Forest Department was started in 1864, with Dietrich Brandis, formerly a Lecturer at Bonn, as the first Inspector General of Forests. The new department needed legislative backing to function effectively, and in the following year, 1865, the first forest act was passed. . . .

      Question 2

      All of the following, if true, would weaken the narrative presented in the passage EXCEPT that:

      Show Answer Explanation

      Instruction for set 1:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      In 1982, a raging controversy broke out over a forest act drafted by the Government of India. This act sought to strengthen the already extensive powers enjoyed by the forest bureaucracy in controlling the extraction, disposal and sale of forest produce. It also gave forest officials greater powers to strictly regulate the entry of any person into reserved forest areas. While forest officials justified the act on the grounds that it was necessary to stop the continuing deforestation, it was bitterly opposed by representatives of grassroots organisations, who argued that it was a major violation of the rights of peasants and tribals living in and around forest areas. . . .

      The debate over the draft forest act fuelled a larger controversy over the orientation of state forest policy. It was pointed out, for example, that the draft act was closely modelled on its predecessor, the Forest Act of 1878. The earlier Act rested on a usurpation of rights of ownership by the colonial state which had little precedent in precolonial history. It was further argued that the system of forestry introduced by the British—and continued, with little modification, after 1947 —emphasised revenue generation and commercial exploitation, while its policing orientation excluded villagers who had the most longstanding claim on forest resources. Critics called for a complete overhaul of forest administration, pressing the government to formulate policy and legislation more appropriate to present needs. . . .

      That debate is not over yet. The draft act was shelved, though it has not as yet been formally withdrawn. Meanwhile, the 1878 Act (as modified by an amendment in 1927) continues to be in operation. In response to its critics, the government has made some important changes in forest policy, e.g., no longer treating forests as a source of revenue, and stopping ecologically hazardous practices such as the clearfelling of natural forests. At the same time, it has shown little inclination to meet the major demand of the critics of forest policy—namely, abandoning the principle of state monopoly over forest land by handing over areas of degraded forests to
      individuals and communities for afforestation.

      . . . [The] 1878 Forest Act itself was passed only after a bitter and prolonged debate within the colonial bureaucracy, in which protagonists put forward arguments strikingly similar to those being advanced today. As is well known, the Indian Forest Department owes its origin to the requirements of railway companies. The early years of the expansion of the railway network, c. 1853 onwards, led to tremendous deforestation in peninsular India owing to the railway's requirements of fuelwood and construction timber. Huge quantities of durable timbers were also needed for use as sleepers across the newly laid tracks. Inexperienced in forestry, the British called in German experts to commence systematic forest management. The Indian Forest Department was started in 1864, with Dietrich Brandis, formerly a Lecturer at Bonn, as the first Inspector General of Forests. The new department needed legislative backing to function effectively, and in the following year, 1865, the first forest act was passed. . . .

      Question 3

      According to the passage, which one of the following is not common to the 1878 Forest Act and the 1982 draft forest act?

      Show Answer Explanation

      Instruction for set 1:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      In 1982, a raging controversy broke out over a forest act drafted by the Government of India. This act sought to strengthen the already extensive powers enjoyed by the forest bureaucracy in controlling the extraction, disposal and sale of forest produce. It also gave forest officials greater powers to strictly regulate the entry of any person into reserved forest areas. While forest officials justified the act on the grounds that it was necessary to stop the continuing deforestation, it was bitterly opposed by representatives of grassroots organisations, who argued that it was a major violation of the rights of peasants and tribals living in and around forest areas. . . .

      The debate over the draft forest act fuelled a larger controversy over the orientation of state forest policy. It was pointed out, for example, that the draft act was closely modelled on its predecessor, the Forest Act of 1878. The earlier Act rested on a usurpation of rights of ownership by the colonial state which had little precedent in precolonial history. It was further argued that the system of forestry introduced by the British—and continued, with little modification, after 1947 —emphasised revenue generation and commercial exploitation, while its policing orientation excluded villagers who had the most longstanding claim on forest resources. Critics called for a complete overhaul of forest administration, pressing the government to formulate policy and legislation more appropriate to present needs. . . .

      That debate is not over yet. The draft act was shelved, though it has not as yet been formally withdrawn. Meanwhile, the 1878 Act (as modified by an amendment in 1927) continues to be in operation. In response to its critics, the government has made some important changes in forest policy, e.g., no longer treating forests as a source of revenue, and stopping ecologically hazardous practices such as the clearfelling of natural forests. At the same time, it has shown little inclination to meet the major demand of the critics of forest policy—namely, abandoning the principle of state monopoly over forest land by handing over areas of degraded forests to
      individuals and communities for afforestation.

      . . . [The] 1878 Forest Act itself was passed only after a bitter and prolonged debate within the colonial bureaucracy, in which protagonists put forward arguments strikingly similar to those being advanced today. As is well known, the Indian Forest Department owes its origin to the requirements of railway companies. The early years of the expansion of the railway network, c. 1853 onwards, led to tremendous deforestation in peninsular India owing to the railway's requirements of fuelwood and construction timber. Huge quantities of durable timbers were also needed for use as sleepers across the newly laid tracks. Inexperienced in forestry, the British called in German experts to commence systematic forest management. The Indian Forest Department was started in 1864, with Dietrich Brandis, formerly a Lecturer at Bonn, as the first Inspector General of Forests. The new department needed legislative backing to function effectively, and in the following year, 1865, the first forest act was passed. . . .

      Question 4

      According to the passage, which one of the following reforms is yet to happen in India’s forest policies?

      Show Answer Explanation

      Instruction for set 2:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Different sciences exhibit different science cultures and practices. For example, in astronomy, observation - until what is today called the new astronomy - had always been limited to what could be seen within the limits of optical light. Indeed, until early modernity the limits to optical light were also limits of what humans could themselves see within their limited and relative perceptual spectrum of human vision. With early modernity and the invention of lensed optical instruments - telescopes - astronomers could begin to observe phenomena never seen before. Magnification and resolution began to allow what was previously imperceptible to be perceived - but within the familiar limits of optical vision. Galileo, having learned of the Dutch invention of a telescope by Hans Lippershey, went on to build some hundred of his own, improving from the Dutch 3x to nearly 30x telescopes - which turn out to be the limit of magnificational power without chromatic distortion. And it was with his own telescopes that he made the observations launching early modern astronomy (phases of Venus, satellites of Jupiter, etc.). Isaac Newton’s later improvement with reflecting telescopes expanded upon the magnificational-resolution capacity of optical observation; and, from Newton to the twentieth century, improvement continued on to the later very large array of light telescopes today - following the usual technological trajectory of “more-is-better” but still remaining within the limits of the light spectrum. Today’s astronomy has now had the benefit of some four centuries of optical telescopy. The “new astronomy,” however, opens the full known electromagnetic spectrum to observation, beginning with the accidental discovery of radio astronomy early in the twentieth century, and leading today to the diverse variety of EMS telescopes which can explore the range from gamma to radio waves. Thus, astronomy, now outfitted with new instruments, “smart” adaptive optics, very large arrays, etc., illustrates one style of instrumentally embodied science - a technoscience. Of course astronomy, with the very recent exceptions of probes to solar system bodies (Moon, Mars, Venus, asteroids), remains largely a “receptive” science, dependent upon instrumentation which can detect and receive emissions.

      Contemporary biology displays a quite different instrument array and, according to Evelyn Fox- Keller, also a different scientific culture. She cites her own experience, coming from mathematical physics into microbiology, and takes account of the distinctive instrumental culture in her Making Sense of Life (2002). Here, particularly with the development of biotechnology, instrumentation is far more interventional than in the astronomy case. Microscopic instrumentation can be and often is interventional in style: “gene-splicing” and other techniques of biotechnology, while still in their infancy, are clearly part of the interventional trajectory of biological instrumentation. Yet, in both disciplines, the sciences involved are today highly instrumentalized and could not progress successfully without constant improvements upon the respective instrumental trajectories. So, minimalistically, one may conclude that the sciences are technologically, instrumentally embodied. But the styles of embodiment differ, and perhaps the last of the scientific disciplines to move into such technical embodiment is mathematics, which only contemporarily has come to rely more and more upon the computational machinery now in common use.

      Question 5

      None of the following statements, if true, contradicts the arguments in the passage EXCEPT:

      Show Answer

      Instruction for set 2:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Different sciences exhibit different science cultures and practices. For example, in astronomy, observation - until what is today called the new astronomy - had always been limited to what could be seen within the limits of optical light. Indeed, until early modernity the limits to optical light were also limits of what humans could themselves see within their limited and relative perceptual spectrum of human vision. With early modernity and the invention of lensed optical instruments - telescopes - astronomers could begin to observe phenomena never seen before. Magnification and resolution began to allow what was previously imperceptible to be perceived - but within the familiar limits of optical vision. Galileo, having learned of the Dutch invention of a telescope by Hans Lippershey, went on to build some hundred of his own, improving from the Dutch 3x to nearly 30x telescopes - which turn out to be the limit of magnificational power without chromatic distortion. And it was with his own telescopes that he made the observations launching early modern astronomy (phases of Venus, satellites of Jupiter, etc.). Isaac Newton’s later improvement with reflecting telescopes expanded upon the magnificational-resolution capacity of optical observation; and, from Newton to the twentieth century, improvement continued on to the later very large array of light telescopes today - following the usual technological trajectory of “more-is-better” but still remaining within the limits of the light spectrum. Today’s astronomy has now had the benefit of some four centuries of optical telescopy. The “new astronomy,” however, opens the full known electromagnetic spectrum to observation, beginning with the accidental discovery of radio astronomy early in the twentieth century, and leading today to the diverse variety of EMS telescopes which can explore the range from gamma to radio waves. Thus, astronomy, now outfitted with new instruments, “smart” adaptive optics, very large arrays, etc., illustrates one style of instrumentally embodied science - a technoscience. Of course astronomy, with the very recent exceptions of probes to solar system bodies (Moon, Mars, Venus, asteroids), remains largely a “receptive” science, dependent upon instrumentation which can detect and receive emissions.

      Contemporary biology displays a quite different instrument array and, according to Evelyn Fox- Keller, also a different scientific culture. She cites her own experience, coming from mathematical physics into microbiology, and takes account of the distinctive instrumental culture in her Making Sense of Life (2002). Here, particularly with the development of biotechnology, instrumentation is far more interventional than in the astronomy case. Microscopic instrumentation can be and often is interventional in style: “gene-splicing” and other techniques of biotechnology, while still in their infancy, are clearly part of the interventional trajectory of biological instrumentation. Yet, in both disciplines, the sciences involved are today highly instrumentalized and could not progress successfully without constant improvements upon the respective instrumental trajectories. So, minimalistically, one may conclude that the sciences are technologically, instrumentally embodied. But the styles of embodiment differ, and perhaps the last of the scientific disciplines to move into such technical embodiment is mathematics, which only contemporarily has come to rely more and more upon the computational machinery now in common use.

      Question 6

      All of the following statements may be rejected as valid inferences from the passage EXCEPT:


      Instruction for set 2:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Different sciences exhibit different science cultures and practices. For example, in astronomy, observation - until what is today called the new astronomy - had always been limited to what could be seen within the limits of optical light. Indeed, until early modernity the limits to optical light were also limits of what humans could themselves see within their limited and relative perceptual spectrum of human vision. With early modernity and the invention of lensed optical instruments - telescopes - astronomers could begin to observe phenomena never seen before. Magnification and resolution began to allow what was previously imperceptible to be perceived - but within the familiar limits of optical vision. Galileo, having learned of the Dutch invention of a telescope by Hans Lippershey, went on to build some hundred of his own, improving from the Dutch 3x to nearly 30x telescopes - which turn out to be the limit of magnificational power without chromatic distortion. And it was with his own telescopes that he made the observations launching early modern astronomy (phases of Venus, satellites of Jupiter, etc.). Isaac Newton’s later improvement with reflecting telescopes expanded upon the magnificational-resolution capacity of optical observation; and, from Newton to the twentieth century, improvement continued on to the later very large array of light telescopes today - following the usual technological trajectory of “more-is-better” but still remaining within the limits of the light spectrum. Today’s astronomy has now had the benefit of some four centuries of optical telescopy. The “new astronomy,” however, opens the full known electromagnetic spectrum to observation, beginning with the accidental discovery of radio astronomy early in the twentieth century, and leading today to the diverse variety of EMS telescopes which can explore the range from gamma to radio waves. Thus, astronomy, now outfitted with new instruments, “smart” adaptive optics, very large arrays, etc., illustrates one style of instrumentally embodied science - a technoscience. Of course astronomy, with the very recent exceptions of probes to solar system bodies (Moon, Mars, Venus, asteroids), remains largely a “receptive” science, dependent upon instrumentation which can detect and receive emissions.

      Contemporary biology displays a quite different instrument array and, according to Evelyn Fox- Keller, also a different scientific culture. She cites her own experience, coming from mathematical physics into microbiology, and takes account of the distinctive instrumental culture in her Making Sense of Life (2002). Here, particularly with the development of biotechnology, instrumentation is far more interventional than in the astronomy case. Microscopic instrumentation can be and often is interventional in style: “gene-splicing” and other techniques of biotechnology, while still in their infancy, are clearly part of the interventional trajectory of biological instrumentation. Yet, in both disciplines, the sciences involved are today highly instrumentalized and could not progress successfully without constant improvements upon the respective instrumental trajectories. So, minimalistically, one may conclude that the sciences are technologically, instrumentally embodied. But the styles of embodiment differ, and perhaps the last of the scientific disciplines to move into such technical embodiment is mathematics, which only contemporarily has come to rely more and more upon the computational machinery now in common use.

      Question 7

      To which one of the following instruments would the characterisations of instruments in the passage be least applicable?


      Instruction for set 2:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Different sciences exhibit different science cultures and practices. For example, in astronomy, observation - until what is today called the new astronomy - had always been limited to what could be seen within the limits of optical light. Indeed, until early modernity the limits to optical light were also limits of what humans could themselves see within their limited and relative perceptual spectrum of human vision. With early modernity and the invention of lensed optical instruments - telescopes - astronomers could begin to observe phenomena never seen before. Magnification and resolution began to allow what was previously imperceptible to be perceived - but within the familiar limits of optical vision. Galileo, having learned of the Dutch invention of a telescope by Hans Lippershey, went on to build some hundred of his own, improving from the Dutch 3x to nearly 30x telescopes - which turn out to be the limit of magnificational power without chromatic distortion. And it was with his own telescopes that he made the observations launching early modern astronomy (phases of Venus, satellites of Jupiter, etc.). Isaac Newton’s later improvement with reflecting telescopes expanded upon the magnificational-resolution capacity of optical observation; and, from Newton to the twentieth century, improvement continued on to the later very large array of light telescopes today - following the usual technological trajectory of “more-is-better” but still remaining within the limits of the light spectrum. Today’s astronomy has now had the benefit of some four centuries of optical telescopy. The “new astronomy,” however, opens the full known electromagnetic spectrum to observation, beginning with the accidental discovery of radio astronomy early in the twentieth century, and leading today to the diverse variety of EMS telescopes which can explore the range from gamma to radio waves. Thus, astronomy, now outfitted with new instruments, “smart” adaptive optics, very large arrays, etc., illustrates one style of instrumentally embodied science - a technoscience. Of course astronomy, with the very recent exceptions of probes to solar system bodies (Moon, Mars, Venus, asteroids), remains largely a “receptive” science, dependent upon instrumentation which can detect and receive emissions.

      Contemporary biology displays a quite different instrument array and, according to Evelyn Fox- Keller, also a different scientific culture. She cites her own experience, coming from mathematical physics into microbiology, and takes account of the distinctive instrumental culture in her Making Sense of Life (2002). Here, particularly with the development of biotechnology, instrumentation is far more interventional than in the astronomy case. Microscopic instrumentation can be and often is interventional in style: “gene-splicing” and other techniques of biotechnology, while still in their infancy, are clearly part of the interventional trajectory of biological instrumentation. Yet, in both disciplines, the sciences involved are today highly instrumentalized and could not progress successfully without constant improvements upon the respective instrumental trajectories. So, minimalistically, one may conclude that the sciences are technologically, instrumentally embodied. But the styles of embodiment differ, and perhaps the last of the scientific disciplines to move into such technical embodiment is mathematics, which only contemporarily has come to rely more and more upon the computational machinery now in common use.

      Question 8

      Which one of the following observations is a valid conclusion to draw from the statement that “the sciences involved are today highly instrumentalised and could not progress successfully without constant improvements upon the respective instrumental trajectories”?


      Instruction for set 3:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      This book takes the position that setting in literature is more than just backdrop, that important insight into literary texts can be made by paying close attention to how authors craft place, as well as to how place functions in a narrative. The authors included in this reference work engage deeply with either real or imagined geographies. They care about how human decisions have shaped landscapes and how landscapes have shaped human practices and values. Some of the best writing is highly vivid, employing the language of the senses because this is the primary means through which humans know physical space.

      Literature can offer valuable perspectives on physical and cultural geography. Unlike scientific reports, a literary narrative can provide the emotional component missing from the scientific record. In human experience, geographical places have a spiritual or emotional component in addition to and as part of a physical layout and topography. This emotional component, although subjective, is no less “real” than a surveyor’s map. Human consciousness of place is experienced in a multimodal manner. Histories of places live on in many forms, one of which is the human memory or imagination.

      Both real and imaginary landscapes provide insight into the human experience of place. The pursuit of such a topic speaks to the valuable knowledge produced from bridging disciplines and combining material from both the arts and the sciences to better understand the human condition. The perspectives that most concern cultural geographers are often those regarding movement and migration, cultivation of natural resources, and organization of space. The latter two reflect concerns of the built environment, a topic shared with the field of architectural study. Many of these concerns are also reflected in work sociologists do. Scholars from literary studies can contribute an aesthetic dimension to what might otherwise be a purely ideological approach.

      Literature can bring together material that spans different branches of science. For example, a literary description of place may involve not only the environment and geography but the noises and quality of light, or how people from different races or classes can experience the same place in different ways linked to those racial or class disparities. Literary texts can also account for the way in which absence—of other people, animals, and so on—affects a human observer or inhabitant. Both literary and scientific approaches to place are necessary, working in unison, to achieve a complete record of an environment. It is important to note that the interdisciplinary nature of this work teaches us that landscapes are not static, that they are not unchanged by human culture. At least part of their identity derives from the people who inhabit them and from the way space can alter and inspire human perspective. The intersection of scientific and literary expression that happens in the study of literary geography is of prime importance due to the complexity of the personal and political ways that humans experience place.

      Question 9

      Which one of the following is a valid conclusion to draw from the author’s statement that, “The pursuit of such a topic speaks to the valuable knowledge produced from bridging disciplines and combining material from both the arts and the sciences to better understand the human condition.”?


      Instruction for set 3:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      This book takes the position that setting in literature is more than just backdrop, that important insight into literary texts can be made by paying close attention to how authors craft place, as well as to how place functions in a narrative. The authors included in this reference work engage deeply with either real or imagined geographies. They care about how human decisions have shaped landscapes and how landscapes have shaped human practices and values. Some of the best writing is highly vivid, employing the language of the senses because this is the primary means through which humans know physical space.

      Literature can offer valuable perspectives on physical and cultural geography. Unlike scientific reports, a literary narrative can provide the emotional component missing from the scientific record. In human experience, geographical places have a spiritual or emotional component in addition to and as part of a physical layout and topography. This emotional component, although subjective, is no less “real” than a surveyor’s map. Human consciousness of place is experienced in a multimodal manner. Histories of places live on in many forms, one of which is the human memory or imagination.

      Both real and imaginary landscapes provide insight into the human experience of place. The pursuit of such a topic speaks to the valuable knowledge produced from bridging disciplines and combining material from both the arts and the sciences to better understand the human condition. The perspectives that most concern cultural geographers are often those regarding movement and migration, cultivation of natural resources, and organization of space. The latter two reflect concerns of the built environment, a topic shared with the field of architectural study. Many of these concerns are also reflected in work sociologists do. Scholars from literary studies can contribute an aesthetic dimension to what might otherwise be a purely ideological approach.

      Literature can bring together material that spans different branches of science. For example, a literary description of place may involve not only the environment and geography but the noises and quality of light, or how people from different races or classes can experience the same place in different ways linked to those racial or class disparities. Literary texts can also account for the way in which absence—of other people, animals, and so on—affects a human observer or inhabitant. Both literary and scientific approaches to place are necessary, working in unison, to achieve a complete record of an environment. It is important to note that the interdisciplinary nature of this work teaches us that landscapes are not static, that they are not unchanged by human culture. At least part of their identity derives from the people who inhabit them and from the way space can alter and inspire human perspective. The intersection of scientific and literary expression that happens in the study of literary geography is of prime importance due to the complexity of the personal and political ways that humans experience place.

      Question 10

      Which one of the following is not true of the argument in the second paragraph?


      Instruction for set 3:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      This book takes the position that setting in literature is more than just backdrop, that important insight into literary texts can be made by paying close attention to how authors craft place, as well as to how place functions in a narrative. The authors included in this reference work engage deeply with either real or imagined geographies. They care about how human decisions have shaped landscapes and how landscapes have shaped human practices and values. Some of the best writing is highly vivid, employing the language of the senses because this is the primary means through which humans know physical space.

      Literature can offer valuable perspectives on physical and cultural geography. Unlike scientific reports, a literary narrative can provide the emotional component missing from the scientific record. In human experience, geographical places have a spiritual or emotional component in addition to and as part of a physical layout and topography. This emotional component, although subjective, is no less “real” than a surveyor’s map. Human consciousness of place is experienced in a multimodal manner. Histories of places live on in many forms, one of which is the human memory or imagination.

      Both real and imaginary landscapes provide insight into the human experience of place. The pursuit of such a topic speaks to the valuable knowledge produced from bridging disciplines and combining material from both the arts and the sciences to better understand the human condition. The perspectives that most concern cultural geographers are often those regarding movement and migration, cultivation of natural resources, and organization of space. The latter two reflect concerns of the built environment, a topic shared with the field of architectural study. Many of these concerns are also reflected in work sociologists do. Scholars from literary studies can contribute an aesthetic dimension to what might otherwise be a purely ideological approach.

      Literature can bring together material that spans different branches of science. For example, a literary description of place may involve not only the environment and geography but the noises and quality of light, or how people from different races or classes can experience the same place in different ways linked to those racial or class disparities. Literary texts can also account for the way in which absence—of other people, animals, and so on—affects a human observer or inhabitant. Both literary and scientific approaches to place are necessary, working in unison, to achieve a complete record of an environment. It is important to note that the interdisciplinary nature of this work teaches us that landscapes are not static, that they are not unchanged by human culture. At least part of their identity derives from the people who inhabit them and from the way space can alter and inspire human perspective. The intersection of scientific and literary expression that happens in the study of literary geography is of prime importance due to the complexity of the personal and political ways that humans experience place.

      Question 11

      The author uses the example of the literary description of place to illustrate that:


      Instruction for set 3:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      This book takes the position that setting in literature is more than just backdrop, that important insight into literary texts can be made by paying close attention to how authors craft place, as well as to how place functions in a narrative. The authors included in this reference work engage deeply with either real or imagined geographies. They care about how human decisions have shaped landscapes and how landscapes have shaped human practices and values. Some of the best writing is highly vivid, employing the language of the senses because this is the primary means through which humans know physical space.

      Literature can offer valuable perspectives on physical and cultural geography. Unlike scientific reports, a literary narrative can provide the emotional component missing from the scientific record. In human experience, geographical places have a spiritual or emotional component in addition to and as part of a physical layout and topography. This emotional component, although subjective, is no less “real” than a surveyor’s map. Human consciousness of place is experienced in a multimodal manner. Histories of places live on in many forms, one of which is the human memory or imagination.

      Both real and imaginary landscapes provide insight into the human experience of place. The pursuit of such a topic speaks to the valuable knowledge produced from bridging disciplines and combining material from both the arts and the sciences to better understand the human condition. The perspectives that most concern cultural geographers are often those regarding movement and migration, cultivation of natural resources, and organization of space. The latter two reflect concerns of the built environment, a topic shared with the field of architectural study. Many of these concerns are also reflected in work sociologists do. Scholars from literary studies can contribute an aesthetic dimension to what might otherwise be a purely ideological approach.

      Literature can bring together material that spans different branches of science. For example, a literary description of place may involve not only the environment and geography but the noises and quality of light, or how people from different races or classes can experience the same place in different ways linked to those racial or class disparities. Literary texts can also account for the way in which absence—of other people, animals, and so on—affects a human observer or inhabitant. Both literary and scientific approaches to place are necessary, working in unison, to achieve a complete record of an environment. It is important to note that the interdisciplinary nature of this work teaches us that landscapes are not static, that they are not unchanged by human culture. At least part of their identity derives from the people who inhabit them and from the way space can alter and inspire human perspective. The intersection of scientific and literary expression that happens in the study of literary geography is of prime importance due to the complexity of the personal and political ways that humans experience place.

      Question 12

      All of the following statements, if false, would contradict the arguments in the passage, EXCEPT that:


      Instruction for set 4:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Understanding the key properties of complex systems can help us clarify and deal with many new and existing global challenges, from pandemics to poverty . . . A recent study in Nature Physics found transitions to orderly states such as schooling in fish (all fish swimming in the same direction), can be caused, paradoxically, by randomness, or 'noise' feeding back on itself. That is, a misalignment among the fish causes further misalignment, eventually inducing a transition to schooling. Most of us wouldn't guess that noise can produce predictable behaviour. The result invites us to consider how technology such as contact-tracing apps, although informing us locally, might negatively impact our collective movement. If each of us changes our behaviour to avoid the infected, we might generate a collective pattern we had aimed to avoid: higher levels of interaction between the infected and susceptible, or high levels of interaction among the asymptomatic.

      Complex systems also suffer from a special vulnerability to events that don't follow a normal distribution or 'bell curve'. When events are distributed normally, most outcomes are familiar and don't seem particularly striking. Height is a good example: it's pretty unusual for a man to be over 7 feet tall; most adults are between 5 and 6 feet, and there is no known person over 9 feet tall. But in collective settings where contagion shapes behaviour - a run on the banks, a scramble to buy toilet paper - the probability distributions for possible events are often heavy-tailed. There is a much higher probability of extreme events, such as a stock market crash or a massive surge in infections. These events are still unlikely, but they occur more frequently and are larger than would be expected under normal distributions.

      What's more, once a rare but hugely significant 'tail' event takes place, this raises the probability of further tail events. We might call them second-order tail events; they include stock market gyrations after a big fall and earthquake aftershocks. The initial probability of second-order tail events is so tiny it's almost impossible to calculate - but once a first-order tail event occurs, the rules change, and the probability of a second-order tail event increases.

      The dynamics of tail events are complicated by the fact that they result from cascades of other unlikely events. When COVID-19 first struck, the stock market suffered stunning losses followed by an equally stunning recovery. Some of these dynamics are potentially attributable to former sports bettors, with no sports to bet on, entering the market as speculators rather than investors. The arrival of these new players might have increased inefficiencies and allowed savvy long-term investors to gain an edge over bettors with different goals. . . .

      One reason a first-order tail event can induce further tail events is that it changes the perceived costs of our actions and changes the rules that we play by. This game-change is an example of another key complex systems concept: nonstationarity. A second, canonical example of nonstationarity is adaptation, as illustrated by the arms race involved in the coevolution of hosts and parasites [in which] each has to 'run' faster, just to keep up with the novel solutions the other one presents as they battle it out in evolutionary time.

      Question 13

      Which one of the options below best summarises the passage?


      Instruction for set 4:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Understanding the key properties of complex systems can help us clarify and deal with many new and existing global challenges, from pandemics to poverty . . . A recent study in Nature Physics found transitions to orderly states such as schooling in fish (all fish swimming in the same direction), can be caused, paradoxically, by randomness, or 'noise' feeding back on itself. That is, a misalignment among the fish causes further misalignment, eventually inducing a transition to schooling. Most of us wouldn't guess that noise can produce predictable behaviour. The result invites us to consider how technology such as contact-tracing apps, although informing us locally, might negatively impact our collective movement. If each of us changes our behaviour to avoid the infected, we might generate a collective pattern we had aimed to avoid: higher levels of interaction between the infected and susceptible, or high levels of interaction among the asymptomatic.

      Complex systems also suffer from a special vulnerability to events that don't follow a normal distribution or 'bell curve'. When events are distributed normally, most outcomes are familiar and don't seem particularly striking. Height is a good example: it's pretty unusual for a man to be over 7 feet tall; most adults are between 5 and 6 feet, and there is no known person over 9 feet tall. But in collective settings where contagion shapes behaviour - a run on the banks, a scramble to buy toilet paper - the probability distributions for possible events are often heavy-tailed. There is a much higher probability of extreme events, such as a stock market crash or a massive surge in infections. These events are still unlikely, but they occur more frequently and are larger than would be expected under normal distributions.

      What's more, once a rare but hugely significant 'tail' event takes place, this raises the probability of further tail events. We might call them second-order tail events; they include stock market gyrations after a big fall and earthquake aftershocks. The initial probability of second-order tail events is so tiny it's almost impossible to calculate - but once a first-order tail event occurs, the rules change, and the probability of a second-order tail event increases.

      The dynamics of tail events are complicated by the fact that they result from cascades of other unlikely events. When COVID-19 first struck, the stock market suffered stunning losses followed by an equally stunning recovery. Some of these dynamics are potentially attributable to former sports bettors, with no sports to bet on, entering the market as speculators rather than investors. The arrival of these new players might have increased inefficiencies and allowed savvy long-term investors to gain an edge over bettors with different goals. . . .

      One reason a first-order tail event can induce further tail events is that it changes the perceived costs of our actions and changes the rules that we play by. This game-change is an example of another key complex systems concept: nonstationarity. A second, canonical example of nonstationarity is adaptation, as illustrated by the arms race involved in the coevolution of hosts and parasites [in which] each has to 'run' faster, just to keep up with the novel solutions the other one presents as they battle it out in evolutionary time.

      Question 14

      Which one of the following observations would most strengthen the passage's claim that a first-order tail event raises the probability of further tail events in complex systems?


      Instruction for set 4:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Understanding the key properties of complex systems can help us clarify and deal with many new and existing global challenges, from pandemics to poverty . . . A recent study in Nature Physics found transitions to orderly states such as schooling in fish (all fish swimming in the same direction), can be caused, paradoxically, by randomness, or 'noise' feeding back on itself. That is, a misalignment among the fish causes further misalignment, eventually inducing a transition to schooling. Most of us wouldn't guess that noise can produce predictable behaviour. The result invites us to consider how technology such as contact-tracing apps, although informing us locally, might negatively impact our collective movement. If each of us changes our behaviour to avoid the infected, we might generate a collective pattern we had aimed to avoid: higher levels of interaction between the infected and susceptible, or high levels of interaction among the asymptomatic.

      Complex systems also suffer from a special vulnerability to events that don't follow a normal distribution or 'bell curve'. When events are distributed normally, most outcomes are familiar and don't seem particularly striking. Height is a good example: it's pretty unusual for a man to be over 7 feet tall; most adults are between 5 and 6 feet, and there is no known person over 9 feet tall. But in collective settings where contagion shapes behaviour - a run on the banks, a scramble to buy toilet paper - the probability distributions for possible events are often heavy-tailed. There is a much higher probability of extreme events, such as a stock market crash or a massive surge in infections. These events are still unlikely, but they occur more frequently and are larger than would be expected under normal distributions.

      What's more, once a rare but hugely significant 'tail' event takes place, this raises the probability of further tail events. We might call them second-order tail events; they include stock market gyrations after a big fall and earthquake aftershocks. The initial probability of second-order tail events is so tiny it's almost impossible to calculate - but once a first-order tail event occurs, the rules change, and the probability of a second-order tail event increases.

      The dynamics of tail events are complicated by the fact that they result from cascades of other unlikely events. When COVID-19 first struck, the stock market suffered stunning losses followed by an equally stunning recovery. Some of these dynamics are potentially attributable to former sports bettors, with no sports to bet on, entering the market as speculators rather than investors. The arrival of these new players might have increased inefficiencies and allowed savvy long-term investors to gain an edge over bettors with different goals. . . .

      One reason a first-order tail event can induce further tail events is that it changes the perceived costs of our actions and changes the rules that we play by. This game-change is an example of another key complex systems concept: nonstationarity. A second, canonical example of nonstationarity is adaptation, as illustrated by the arms race involved in the coevolution of hosts and parasites [in which] each has to 'run' faster, just to keep up with the novel solutions the other one presents as they battle it out in evolutionary time.

      Question 15

      The passage suggests that contact tracing apps could inadvertently raise risky interactions by altering local behaviour. Which one of the assumptions below is most necessary for that suggestion to hold?


      Instruction for set 4:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.

      Understanding the key properties of complex systems can help us clarify and deal with many new and existing global challenges, from pandemics to poverty . . . A recent study in Nature Physics found transitions to orderly states such as schooling in fish (all fish swimming in the same direction), can be caused, paradoxically, by randomness, or 'noise' feeding back on itself. That is, a misalignment among the fish causes further misalignment, eventually inducing a transition to schooling. Most of us wouldn't guess that noise can produce predictable behaviour. The result invites us to consider how technology such as contact-tracing apps, although informing us locally, might negatively impact our collective movement. If each of us changes our behaviour to avoid the infected, we might generate a collective pattern we had aimed to avoid: higher levels of interaction between the infected and susceptible, or high levels of interaction among the asymptomatic.

      Complex systems also suffer from a special vulnerability to events that don't follow a normal distribution or 'bell curve'. When events are distributed normally, most outcomes are familiar and don't seem particularly striking. Height is a good example: it's pretty unusual for a man to be over 7 feet tall; most adults are between 5 and 6 feet, and there is no known person over 9 feet tall. But in collective settings where contagion shapes behaviour - a run on the banks, a scramble to buy toilet paper - the probability distributions for possible events are often heavy-tailed. There is a much higher probability of extreme events, such as a stock market crash or a massive surge in infections. These events are still unlikely, but they occur more frequently and are larger than would be expected under normal distributions.

      What's more, once a rare but hugely significant 'tail' event takes place, this raises the probability of further tail events. We might call them second-order tail events; they include stock market gyrations after a big fall and earthquake aftershocks. The initial probability of second-order tail events is so tiny it's almost impossible to calculate - but once a first-order tail event occurs, the rules change, and the probability of a second-order tail event increases.

      The dynamics of tail events are complicated by the fact that they result from cascades of other unlikely events. When COVID-19 first struck, the stock market suffered stunning losses followed by an equally stunning recovery. Some of these dynamics are potentially attributable to former sports bettors, with no sports to bet on, entering the market as speculators rather than investors. The arrival of these new players might have increased inefficiencies and allowed savvy long-term investors to gain an edge over bettors with different goals. . . .

      One reason a first-order tail event can induce further tail events is that it changes the perceived costs of our actions and changes the rules that we play by. This game-change is an example of another key complex systems concept: nonstationarity. A second, canonical example of nonstationarity is adaptation, as illustrated by the arms race involved in the coevolution of hosts and parasites [in which] each has to 'run' faster, just to keep up with the novel solutions the other one presents as they battle it out in evolutionary time.

      Question 16

      All of the following inferences are supported by the passage EXCEPT that:


      Instruction for set 5:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question

      Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965- 2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

      Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980-2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

      Question 17

      Which one of the options below best summarises the passage?


      Instruction for set 5:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question

      Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965- 2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

      Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980-2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

      Question 18

      The passage refers to "democratization". Choose the one option below that comes closest to the opposite of this process.


      Instruction for set 5:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question

      Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965- 2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

      Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980-2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

      Question 19

      The primary function of the three-part case for a positive income inequality-economic growth link in the first half of the passage is to show that:


      Instruction for set 5:

      The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question

      Studies showing that income inequality plays a positive role in economic growth are largely based on three arguments. The first argument focuses on investment indivisibilities wherein large sunk costs are required when implementing new fundamental innovations. Without stock markets and financial institutions to mobilize large sums of money, a high concentration of wealth is needed for individuals to undertake new industrial activities accompanied by high sunk costs . . . [One study] shows the relation between economic growth and income inequality for 45 countries during 1966-1995. [It was found] that the increase in income inequality has a significant positive relationship with economic growth in the short and medium term. Using system GMM, [another study estimated] the relation between income inequality and economic growth for 106 countries during 1965- 2005 period. The results show that income inequality has a positive impact on economic growth in the short run, but the two are negatively correlated in the long run. The second argument is related to moral hazard and incentives . . . Because economic performance is determined by the unobservable level of effort that agents make, paying compensations without taking into account the economic performance achieved by individual agents will fail to elicit optimum effort from the agents. Thus, certain income inequalities contribute to growth by enhancing worker motivation . . . and by giving motivation to innovators and entrepreneurs . . . Finally, [another study] point[s] out that the concentration of wealth or stock ownership in relation to corporate governance contributes to growth. If stock ownership is distributed and owned by a large number of shareholders, it is not easy to make quick decisions due to the conflicting interests among shareholders, and this may also cause a free-rider problem in terms of monitoring and supervising managers and workers. . . .

      Various studies have examined the relationships between income inequality and economic growth, and most of these assert that a negative correlation exists between the two. . . . Analyzing 159 countries for 1980-2012, they conclude that there exists a negative relation between income inequality and economic growth; when the income share of the richest 20% of population increases by 1%, the GDP decreases by 0.08%, whereas when the income share of the poorest 20% of population increases by 1%, the GDP increases by 0.38%. Some studies find that inequality has a negative impact on growth due to poor human capital accumulation and low fertility rates . . . while [others] point out that inequality creates political instability, resulting in lower investment. . . . [Some economists] argue that widening income inequality has a negative impact on economic growth because it negatively affects social consensus or social capital formation. One important research topic is the correlation between democratization and income redistribution. [Some scholars] explain that social pressure for income redistribution rises as income inequality increases in a democratic society. In other words, when democratization extends suffrage to a wider class of people, the increased political power of low- and middle-income voters results in broader support for income redistribution and social welfare expansion. However . . . if the rich have more political influence than the poor, the democratic system actually worsens income inequality rather than improving it.

      Question 20

      According to the incentive or moral hazard argument, which one of the designs below is most consistent with the claim that some inequality can raise growth?

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