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.

    YouTube Thumbnail

    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.

      Over the course of the twentieth century, humans built, on average, one large dam a day, hulking structures of steel and concrete designed to control flooding, facilitate irrigation, and generate electricity. Dams were also lucrative contracts, large-scale employers, and the physical instantiation of a messianic drive to conquer territories and control nature. Some of the results of that drive were charismatic mega-infrastructure—the Hoover on the Colorado River or the Aswan on the Nile—but most of the tens of thousands of dams that dot the Earth's landscape have drawn little attention. These are the smaller, though not inconsequential, barriers that today impede the flow of water on nearly two-thirds of the world's large waterways. Chances are, what your map calls a “lake” is actually a reservoir, and that thin blue line that emerges from it once flowed very differently.

      Damming a river is always a partisan act. Even when explicit infrastructure goals— irrigation, flood control, electrification—were met, other consequences were significant and often deleterious. Across the world, river control displaced millions of people, threatening livelihoods, foodways, and cultures. In the western United States, dams were often an instrument of colonialism, used to dispossess Indigenous people and subsidize settler agriculture. And as dams slowed the flow of water, inhibited the movement of nutrients, and increased the amount of toxic algae and other parasites, they snuffed out entire river ecologies. Declining fish populations are the most evident effect, but dams also threaten a host of other animals—from birds and reptiles to fungi and plants—with extinction. Every major dam, then, is also a sacrifice zone, a place where lives, livelihoods, and ways of life are eliminated so that new sorts of landscapes can support water-intensive agriculture and cities that sprout downstream of new reservoirs.

      Such sacrifices have been justified as offerings at the temples of modernity. Justified by—and for—whom, though? Over the course of the twentieth century, rarely were the costs and benefits weighed thoughtfully and decided democratically. As Kader Asmal, chair of the landmark 2000 World Commission on Dams, concluded, “There have been precious few, if any, comprehensive, independent analyses as to why dams came about, how dams perform over time, and whether we are getting a fair return from our $2 trillion investment.” A quarter- century later, Asmal’s words ring ever truer. A litany of dams built in the mid- twentieth century are approaching the end of their expected lives, with worrying prospects for their durability. Droughts, magnified and multiplied by the effects of climate change, have forced more and more to run below capacity. If ever there were a time to rethink the mania for dams, it would be now.

      There is some evidence that a combination of opposition, alternative energy sources, and a lack of viable projects has slowed the construction of major dams. But a wave of recent and ongoing construction, from India and China to Ethiopia and Canada, continues to tilt the global balance firmly in favor of water impoundment.

      Question 1

      Which one of the following sets of terms is closest to mapping the key arguments of the passage?


      Instruction for set 1:

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

      Over the course of the twentieth century, humans built, on average, one large dam a day, hulking structures of steel and concrete designed to control flooding, facilitate irrigation, and generate electricity. Dams were also lucrative contracts, large-scale employers, and the physical instantiation of a messianic drive to conquer territories and control nature. Some of the results of that drive were charismatic mega-infrastructure—the Hoover on the Colorado River or the Aswan on the Nile—but most of the tens of thousands of dams that dot the Earth's landscape have drawn little attention. These are the smaller, though not inconsequential, barriers that today impede the flow of water on nearly two-thirds of the world's large waterways. Chances are, what your map calls a “lake” is actually a reservoir, and that thin blue line that emerges from it once flowed very differently.

      Damming a river is always a partisan act. Even when explicit infrastructure goals— irrigation, flood control, electrification—were met, other consequences were significant and often deleterious. Across the world, river control displaced millions of people, threatening livelihoods, foodways, and cultures. In the western United States, dams were often an instrument of colonialism, used to dispossess Indigenous people and subsidize settler agriculture. And as dams slowed the flow of water, inhibited the movement of nutrients, and increased the amount of toxic algae and other parasites, they snuffed out entire river ecologies. Declining fish populations are the most evident effect, but dams also threaten a host of other animals—from birds and reptiles to fungi and plants—with extinction. Every major dam, then, is also a sacrifice zone, a place where lives, livelihoods, and ways of life are eliminated so that new sorts of landscapes can support water-intensive agriculture and cities that sprout downstream of new reservoirs.

      Such sacrifices have been justified as offerings at the temples of modernity. Justified by—and for—whom, though? Over the course of the twentieth century, rarely were the costs and benefits weighed thoughtfully and decided democratically. As Kader Asmal, chair of the landmark 2000 World Commission on Dams, concluded, “There have been precious few, if any, comprehensive, independent analyses as to why dams came about, how dams perform over time, and whether we are getting a fair return from our $2 trillion investment.” A quarter- century later, Asmal’s words ring ever truer. A litany of dams built in the mid- twentieth century are approaching the end of their expected lives, with worrying prospects for their durability. Droughts, magnified and multiplied by the effects of climate change, have forced more and more to run below capacity. If ever there were a time to rethink the mania for dams, it would be now.

      There is some evidence that a combination of opposition, alternative energy sources, and a lack of viable projects has slowed the construction of major dams. But a wave of recent and ongoing construction, from India and China to Ethiopia and Canada, continues to tilt the global balance firmly in favor of water impoundment.

      Question 2

      What does the author wish to communicate by referring to the Hoover and Aswan dams in the first paragraph?


      Instruction for set 1:

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

      Over the course of the twentieth century, humans built, on average, one large dam a day, hulking structures of steel and concrete designed to control flooding, facilitate irrigation, and generate electricity. Dams were also lucrative contracts, large-scale employers, and the physical instantiation of a messianic drive to conquer territories and control nature. Some of the results of that drive were charismatic mega-infrastructure—the Hoover on the Colorado River or the Aswan on the Nile—but most of the tens of thousands of dams that dot the Earth's landscape have drawn little attention. These are the smaller, though not inconsequential, barriers that today impede the flow of water on nearly two-thirds of the world's large waterways. Chances are, what your map calls a “lake” is actually a reservoir, and that thin blue line that emerges from it once flowed very differently.

      Damming a river is always a partisan act. Even when explicit infrastructure goals— irrigation, flood control, electrification—were met, other consequences were significant and often deleterious. Across the world, river control displaced millions of people, threatening livelihoods, foodways, and cultures. In the western United States, dams were often an instrument of colonialism, used to dispossess Indigenous people and subsidize settler agriculture. And as dams slowed the flow of water, inhibited the movement of nutrients, and increased the amount of toxic algae and other parasites, they snuffed out entire river ecologies. Declining fish populations are the most evident effect, but dams also threaten a host of other animals—from birds and reptiles to fungi and plants—with extinction. Every major dam, then, is also a sacrifice zone, a place where lives, livelihoods, and ways of life are eliminated so that new sorts of landscapes can support water-intensive agriculture and cities that sprout downstream of new reservoirs.

      Such sacrifices have been justified as offerings at the temples of modernity. Justified by—and for—whom, though? Over the course of the twentieth century, rarely were the costs and benefits weighed thoughtfully and decided democratically. As Kader Asmal, chair of the landmark 2000 World Commission on Dams, concluded, “There have been precious few, if any, comprehensive, independent analyses as to why dams came about, how dams perform over time, and whether we are getting a fair return from our $2 trillion investment.” A quarter- century later, Asmal’s words ring ever truer. A litany of dams built in the mid- twentieth century are approaching the end of their expected lives, with worrying prospects for their durability. Droughts, magnified and multiplied by the effects of climate change, have forced more and more to run below capacity. If ever there were a time to rethink the mania for dams, it would be now.

      There is some evidence that a combination of opposition, alternative energy sources, and a lack of viable projects has slowed the construction of major dams. But a wave of recent and ongoing construction, from India and China to Ethiopia and Canada, continues to tilt the global balance firmly in favor of water impoundment.

      Question 3

      The word “instantiation” is used in the first paragraph. Which one of the following pairs of terms would be the best substitute for it in the context of its usage in the paragraph?


      Instruction for set 1:

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

      Over the course of the twentieth century, humans built, on average, one large dam a day, hulking structures of steel and concrete designed to control flooding, facilitate irrigation, and generate electricity. Dams were also lucrative contracts, large-scale employers, and the physical instantiation of a messianic drive to conquer territories and control nature. Some of the results of that drive were charismatic mega-infrastructure—the Hoover on the Colorado River or the Aswan on the Nile—but most of the tens of thousands of dams that dot the Earth's landscape have drawn little attention. These are the smaller, though not inconsequential, barriers that today impede the flow of water on nearly two-thirds of the world's large waterways. Chances are, what your map calls a “lake” is actually a reservoir, and that thin blue line that emerges from it once flowed very differently.

      Damming a river is always a partisan act. Even when explicit infrastructure goals— irrigation, flood control, electrification—were met, other consequences were significant and often deleterious. Across the world, river control displaced millions of people, threatening livelihoods, foodways, and cultures. In the western United States, dams were often an instrument of colonialism, used to dispossess Indigenous people and subsidize settler agriculture. And as dams slowed the flow of water, inhibited the movement of nutrients, and increased the amount of toxic algae and other parasites, they snuffed out entire river ecologies. Declining fish populations are the most evident effect, but dams also threaten a host of other animals—from birds and reptiles to fungi and plants—with extinction. Every major dam, then, is also a sacrifice zone, a place where lives, livelihoods, and ways of life are eliminated so that new sorts of landscapes can support water-intensive agriculture and cities that sprout downstream of new reservoirs.

      Such sacrifices have been justified as offerings at the temples of modernity. Justified by—and for—whom, though? Over the course of the twentieth century, rarely were the costs and benefits weighed thoughtfully and decided democratically. As Kader Asmal, chair of the landmark 2000 World Commission on Dams, concluded, “There have been precious few, if any, comprehensive, independent analyses as to why dams came about, how dams perform over time, and whether we are getting a fair return from our $2 trillion investment.” A quarter- century later, Asmal’s words ring ever truer. A litany of dams built in the mid- twentieth century are approaching the end of their expected lives, with worrying prospects for their durability. Droughts, magnified and multiplied by the effects of climate change, have forced more and more to run below capacity. If ever there were a time to rethink the mania for dams, it would be now.

      There is some evidence that a combination of opposition, alternative energy sources, and a lack of viable projects has slowed the construction of major dams. But a wave of recent and ongoing construction, from India and China to Ethiopia and Canada, continues to tilt the global balance firmly in favor of water impoundment.

      Question 4

      All of the following statements may be considered valid inferences from the passage EXCEPT that:


      Instruction for set 2:

      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 5

      Which one of the options below best summarises the passage?


      Instruction for set 2:

      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 6

      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 2:

      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 7

      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 2:

      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 8

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


      Instruction for set 3:

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

      Time and again, whenever a population [of Mexican tetra fish] was swept into a cave and survived long enough for natural selection to have its way, the eyes disappeared. “But it’s not that everything has been lost in cavefish . . . Many enhancements have also happened.” . . . Studies have found that cave-dwelling fish can detect lower levels of amino acids than surface fish can. They also have more tastebuds and a higher density of sensitive cells alongside their bodies that let them sense water pressure and flow. . . .

      Killing the processes that support the formation of the eye is quite literally what happens. Just like non-cave-dwelling members of the species, all cavefish embryos start making eyes. But after a few hours, cells in the developing eye start dying, until the entire structure has disappeared. [Developmental biologist Misty] Riddle thinks this apparent inefficiency may be unavoidable. “The early development of the brain and the eye are completely intertwined—they happen together,” she says. That means the least disruptive way for eyelessness to evolve may be to start making an eye and then get rid of it. . . .

      It’s easy to see why cavefish would be at a disadvantage if they were to maintain expensive tissues they aren’t using. Since relatively little lives or grows in their caves, the fish are likely surviving on a meager diet of mostly bat feces and organic waste that washes in during the rainy season. Researchers keeping cavefish in labs have discovered that, genetically, the creatures are exquisitely adapted to absorbing and storing nutrients. . . .

      Fats can be toxic for tissues, [evolutionary physiologist Nicolas] Rohner explains, so they are stored in fat cells. “But when these cells get too big, they can burst, which is why we often see chronic inflammation in humans and other animals that have stored a lot of fat in their tissues.” Yet a 2020 study by Rohner, Krishnan and their colleagues revealed that even very well-fed cavefish had fewer signs of inflammation in their fat tissues than surface fish do. Even in their sparse cave conditions, wild cavefish can sometimes get very fat, says Riddle. This is presumably because, whenever food ends up in the cave, the fish eat as much of it as possible, since there may be nothing else for a long time to come. Intriguingly, Riddle says, their fat is usually bright yellow because of high levels of carotenoids, the substance in the carrots that your grandmother used to tell you were good for your…eyes.

      “The first thing that came to our mind, of course, was that they were accumulating these because they don’t have eyes,” says Riddle. In this species, such ideas can be tested: Scientists can cross surface fish (with eyes) and cavefish (without eyes) and look at what their offspring are like. When that’s done, Riddle says, researchers see no link between eye presence or size and the accumulation of carotenoids. Some eyeless cavefish had fat that was practically white, indicating lower carotenoid levels. Instead, Riddle thinks these carotenoids may be another adaptation to suppress inflammation, which might be important in the wild, as cavefish are likely overeating whenever food arrives.

      Question 9

      All of the following statements from the passage describe adaptation in Mexican tetra cavefish EXCEPT:


      Instruction for set 3:

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

      Time and again, whenever a population [of Mexican tetra fish] was swept into a cave and survived long enough for natural selection to have its way, the eyes disappeared. “But it’s not that everything has been lost in cavefish . . . Many enhancements have also happened.” . . . Studies have found that cave-dwelling fish can detect lower levels of amino acids than surface fish can. They also have more tastebuds and a higher density of sensitive cells alongside their bodies that let them sense water pressure and flow. . . .

      Killing the processes that support the formation of the eye is quite literally what happens. Just like non-cave-dwelling members of the species, all cavefish embryos start making eyes. But after a few hours, cells in the developing eye start dying, until the entire structure has disappeared. [Developmental biologist Misty] Riddle thinks this apparent inefficiency may be unavoidable. “The early development of the brain and the eye are completely intertwined—they happen together,” she says. That means the least disruptive way for eyelessness to evolve may be to start making an eye and then get rid of it. . . .

      It’s easy to see why cavefish would be at a disadvantage if they were to maintain expensive tissues they aren’t using. Since relatively little lives or grows in their caves, the fish are likely surviving on a meager diet of mostly bat feces and organic waste that washes in during the rainy season. Researchers keeping cavefish in labs have discovered that, genetically, the creatures are exquisitely adapted to absorbing and storing nutrients. . . .

      Fats can be toxic for tissues, [evolutionary physiologist Nicolas] Rohner explains, so they are stored in fat cells. “But when these cells get too big, they can burst, which is why we often see chronic inflammation in humans and other animals that have stored a lot of fat in their tissues.” Yet a 2020 study by Rohner, Krishnan and their colleagues revealed that even very well-fed cavefish had fewer signs of inflammation in their fat tissues than surface fish do. Even in their sparse cave conditions, wild cavefish can sometimes get very fat, says Riddle. This is presumably because, whenever food ends up in the cave, the fish eat as much of it as possible, since there may be nothing else for a long time to come. Intriguingly, Riddle says, their fat is usually bright yellow because of high levels of carotenoids, the substance in the carrots that your grandmother used to tell you were good for your…eyes.

      “The first thing that came to our mind, of course, was that they were accumulating these because they don’t have eyes,” says Riddle. In this species, such ideas can be tested: Scientists can cross surface fish (with eyes) and cavefish (without eyes) and look at what their offspring are like. When that’s done, Riddle says, researchers see no link between eye presence or size and the accumulation of carotenoids. Some eyeless cavefish had fat that was practically white, indicating lower carotenoid levels. Instead, Riddle thinks these carotenoids may be another adaptation to suppress inflammation, which might be important in the wild, as cavefish are likely overeating whenever food arrives.

      Question 10

      Which one of the following best explains why the “apparent inefficiency” is “unavoidable”?


      Instruction for set 3:

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

      Time and again, whenever a population [of Mexican tetra fish] was swept into a cave and survived long enough for natural selection to have its way, the eyes disappeared. “But it’s not that everything has been lost in cavefish . . . Many enhancements have also happened.” . . . Studies have found that cave-dwelling fish can detect lower levels of amino acids than surface fish can. They also have more tastebuds and a higher density of sensitive cells alongside their bodies that let them sense water pressure and flow. . . .

      Killing the processes that support the formation of the eye is quite literally what happens. Just like non-cave-dwelling members of the species, all cavefish embryos start making eyes. But after a few hours, cells in the developing eye start dying, until the entire structure has disappeared. [Developmental biologist Misty] Riddle thinks this apparent inefficiency may be unavoidable. “The early development of the brain and the eye are completely intertwined—they happen together,” she says. That means the least disruptive way for eyelessness to evolve may be to start making an eye and then get rid of it. . . .

      It’s easy to see why cavefish would be at a disadvantage if they were to maintain expensive tissues they aren’t using. Since relatively little lives or grows in their caves, the fish are likely surviving on a meager diet of mostly bat feces and organic waste that washes in during the rainy season. Researchers keeping cavefish in labs have discovered that, genetically, the creatures are exquisitely adapted to absorbing and storing nutrients. . . .

      Fats can be toxic for tissues, [evolutionary physiologist Nicolas] Rohner explains, so they are stored in fat cells. “But when these cells get too big, they can burst, which is why we often see chronic inflammation in humans and other animals that have stored a lot of fat in their tissues.” Yet a 2020 study by Rohner, Krishnan and their colleagues revealed that even very well-fed cavefish had fewer signs of inflammation in their fat tissues than surface fish do. Even in their sparse cave conditions, wild cavefish can sometimes get very fat, says Riddle. This is presumably because, whenever food ends up in the cave, the fish eat as much of it as possible, since there may be nothing else for a long time to come. Intriguingly, Riddle says, their fat is usually bright yellow because of high levels of carotenoids, the substance in the carrots that your grandmother used to tell you were good for your…eyes.

      “The first thing that came to our mind, of course, was that they were accumulating these because they don’t have eyes,” says Riddle. In this species, such ideas can be tested: Scientists can cross surface fish (with eyes) and cavefish (without eyes) and look at what their offspring are like. When that’s done, Riddle says, researchers see no link between eye presence or size and the accumulation of carotenoids. Some eyeless cavefish had fat that was practically white, indicating lower carotenoid levels. Instead, Riddle thinks these carotenoids may be another adaptation to suppress inflammation, which might be important in the wild, as cavefish are likely overeating whenever food arrives.

      Question 11

      Which one of the following results for the cross between surface fish (with eyes) and cavefish (without eyes) would invalidate Riddle’s inference from the experiment?


      Instruction for set 3:

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

      Time and again, whenever a population [of Mexican tetra fish] was swept into a cave and survived long enough for natural selection to have its way, the eyes disappeared. “But it’s not that everything has been lost in cavefish . . . Many enhancements have also happened.” . . . Studies have found that cave-dwelling fish can detect lower levels of amino acids than surface fish can. They also have more tastebuds and a higher density of sensitive cells alongside their bodies that let them sense water pressure and flow. . . .

      Killing the processes that support the formation of the eye is quite literally what happens. Just like non-cave-dwelling members of the species, all cavefish embryos start making eyes. But after a few hours, cells in the developing eye start dying, until the entire structure has disappeared. [Developmental biologist Misty] Riddle thinks this apparent inefficiency may be unavoidable. “The early development of the brain and the eye are completely intertwined—they happen together,” she says. That means the least disruptive way for eyelessness to evolve may be to start making an eye and then get rid of it. . . .

      It’s easy to see why cavefish would be at a disadvantage if they were to maintain expensive tissues they aren’t using. Since relatively little lives or grows in their caves, the fish are likely surviving on a meager diet of mostly bat feces and organic waste that washes in during the rainy season. Researchers keeping cavefish in labs have discovered that, genetically, the creatures are exquisitely adapted to absorbing and storing nutrients. . . .

      Fats can be toxic for tissues, [evolutionary physiologist Nicolas] Rohner explains, so they are stored in fat cells. “But when these cells get too big, they can burst, which is why we often see chronic inflammation in humans and other animals that have stored a lot of fat in their tissues.” Yet a 2020 study by Rohner, Krishnan and their colleagues revealed that even very well-fed cavefish had fewer signs of inflammation in their fat tissues than surface fish do. Even in their sparse cave conditions, wild cavefish can sometimes get very fat, says Riddle. This is presumably because, whenever food ends up in the cave, the fish eat as much of it as possible, since there may be nothing else for a long time to come. Intriguingly, Riddle says, their fat is usually bright yellow because of high levels of carotenoids, the substance in the carrots that your grandmother used to tell you were good for your…eyes.

      “The first thing that came to our mind, of course, was that they were accumulating these because they don’t have eyes,” says Riddle. In this species, such ideas can be tested: Scientists can cross surface fish (with eyes) and cavefish (without eyes) and look at what their offspring are like. When that’s done, Riddle says, researchers see no link between eye presence or size and the accumulation of carotenoids. Some eyeless cavefish had fat that was practically white, indicating lower carotenoid levels. Instead, Riddle thinks these carotenoids may be another adaptation to suppress inflammation, which might be important in the wild, as cavefish are likely overeating whenever food arrives.

      Question 12

      On the basis of the information in the passage, what is the most likely function of carotenoids in Mexican tetra cavefish?


      Instruction for set 4:

      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 13

      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 4:

      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 14

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


      Instruction for set 4:

      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 15

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


      Instruction for set 4:

      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 16

      All of the following statements, if false, would contradict the arguments in 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?

      cracku

      Boost your Prep!

      Download App