Questions & explanations
1. The passage mentions the $95 billion in damages from US weather disasters in 2020 as an example of
- the costs of adaptation measures.
- the economic impact of extreme weather events.
- the effectiveness of insurance markets.
- the need for crop diversification.
- the frequency of hurricanes and floods.
Answer: the economic impact of extreme weather events.
The passage states that 'the frequency of extreme weather events... imposes significant costs on infrastructure and insurance markets' and then provides the $95 billion figure as an example of those costs. Thus, it illustrates the economic impact of extreme weather events, matching option b. Options a, c, d, and e are not the primary purpose: a is about adaptation, not the example; c is not mentioned; d is mentioned later but not as the example's role; e focuses on frequency, but the example emphasizes cost.
2. The passage states that Schumpeter viewed creative destruction as
- a process that should be resisted.
- a phenomenon limited to technological change.
- essential for economic growth.
- a concept that ignores human costs.
- a smooth and gradual transition.
Answer: essential for economic growth.
The passage explicitly says: 'Schumpeter himself acknowledged that the process is inherently disruptive, but he viewed it as essential for economic growth.' This directly supports option c. Options a, b, d, and e contradict the passage: a says resist, but passage says not to resist; b says limited to technology, but passage says also social; d says ignores human costs, but critics say that, not Schumpeter; e says smooth, but passage says disruptive.
3. Suppose a new predator (R) is introduced into an ecosystem where it preys exclusively on Q, and Q's birth rate simultaneously increases. According to the model, which of the following is most likely to occur?
- The population of P will increase because the increase in Q's birth rate outweighs the effect of R's predation.
- The population of P will decrease because R competes with P for Q.
- The population of P will remain unchanged because the two effects cancel each other out.
- The population of P will initially increase and then decrease, but the overall effect cannot be determined without more information.
- The population of P will decrease because R's predation on Q reduces the food supply for P.
Answer: The population of P will initially increase and then decrease, but the overall effect cannot be determined without more information.
The model predicts that an increase in Q's birth rate initially raises P's population but then declines. Introducing R, which preys on Q, adds a competing predator, which would reduce P's population. The combined effect is complex: the birth rate increase boosts Q, but R consumes Q. Without knowing the magnitudes, the net effect is uncertain, but the model suggests an initial increase followed by a decrease due to overconsumption and competition.
4. According to the passage, what is the role of policies that support retraining and social safety nets?
- To prevent creative destruction from occurring.
- To eliminate the human costs of creative destruction.
- To manage the consequences of creative destruction.
- To accelerate the process of creative destruction.
- To replace the need for innovation.
Answer: To manage the consequences of creative destruction.
The passage's final sentence states: 'The key is not to resist change but to manage its consequences through policies that support retraining and social safety nets.' This directly matches option c. Options a, b, d, and e contradict the passage: a says prevent, but passage says not to resist; b says eliminate, but passage says manage; d says accelerate, not mentioned; e says replace innovation, opposite of passage.
5. The passage mentions the study by the International Food Policy Research Institute primarily to
- illustrate the potential decline in agricultural productivity due to climate change.
- compare the economic impacts of climate change across different sectors.
- highlight the effectiveness of adaptation measures in agriculture.
- argue that high-emissions scenarios are unavoidable.
- provide evidence that climate change affects only tropical regions.
Answer: illustrate the potential decline in agricultural productivity due to climate change.
The passage introduces the study as an example of how rising temperatures and altered precipitation reduce crop yields, specifically stating 'maize yields in sub-Saharan Africa could decline by up to 22%.' This directly supports option a. Options b, c, d, and e are not supported: b is too broad; c is not mentioned; d is not argued; e contradicts the passage's mention of US disasters.
6. The primary purpose of the passage is to
- compare two inventory management methods and advocate for one.
- explain the drawbacks of just-in-time systems for small businesses.
- describe the challenges of inventory management and propose a solution.
- argue that predictive analytics is superior to all other inventory methods.
- criticize small businesses for their poor inventory management practices.
Answer: describe the challenges of inventory management and propose a solution.
The passage begins by stating the problem (inventory management struggles), then discusses JIT as a common solution with a drawback, and finally presents predictive analytics as an alternative solution. The structure is problem-solution, and the purpose is to describe the challenge and propose a solution, not to advocate strongly for one method (option a) or to criticize (option e).
7. Which of the following situations is most analogous to the Dunning-Kruger effect as described in the passage?
- A novice chess player confidently enters a tournament but loses every game, while a grandmaster worries about facing a strong opponent.
- A student who studies diligently for an exam feels anxious and performs well, while a student who barely studies feels confident and performs poorly.
- A driver with years of experience believes they are an average driver, while a new driver thinks they are excellent.
- A professional musician practices for hours and still feels unprepared for a concert, while an amateur musician feels ready after minimal practice.
- All of the above.
Answer: All of the above.
Each option illustrates the Dunning-Kruger effect: low-ability individuals overestimate (novice chess player, barely-studying student, new driver, amateur musician), while high-ability individuals underestimate (grandmaster, diligent student, experienced driver, professional musician). The passage describes both overestimation by the unskilled and underestimation by the skilled.
8. Which of the following best captures the main idea of the passage?
- Urban beekeeping is a beneficial practice that should be expanded to support bee populations.
- Despite its popularity, urban beekeeping may have unintended negative consequences for bees.
- Environmentalists and food activists disagree about the merits of urban beekeeping.
- Urban environments are unsuitable for beekeeping due to pollution and lack of forage.
- The benefits of urban beekeeping outweigh its drawbacks, making it a worthwhile endeavor.
Answer: Despite its popularity, urban beekeeping may have unintended negative consequences for bees.
The passage presents a balanced view: it acknowledges the enthusiasm for urban beekeeping but then details potential problems (nutritional stress, competition, pollutants). The final sentence states that the practice 'may inadvertently harm the very creatures it aims to protect,' which is the implied main idea. Option b captures this nuanced critique without overstating.
9. The passage suggests that GlobalTech's decision to acquire the cloud computing startup was primarily driven by
- the declining sales of its personal computer line.
- the high level of competition in the mobile market.
- the projected growth rate of the cloud services market.
- the immediate access to proprietary technology.
- the need for a cultural shift within the company.
Answer: the projected growth rate of the cloud services market.
The passage states that the decision was 'based on projections that the cloud services market would grow at an annual rate of 20%... compared to 5% for mobile.' This indicates that the growth projection was a primary driver. While other factors (a, b, d) are mentioned, they are not presented as the primary reason; the growth projection is explicitly cited as the basis.
10. According to the passage, which of the following is NOT true about Schumpeter's view of creative destruction?
- He believed it is essential for economic growth.
- He acknowledged that it can cause job displacement.
- He argued that the long-term benefits outweigh short-term pains.
- He assumed that the benefits of innovation are evenly distributed.
- He thought that without creative destruction, economies would stagnate.
Answer: He assumed that the benefits of innovation are evenly distributed.
The passage states that 'some modern economists question whether the benefits are as evenly distributed as Schumpeter assumed,' but it does not assert that Schumpeter held that assumption; it only reports the economists' questioning. Therefore, the claim that Schumpeter assumed even distribution is not supported by the passage and is not true based on the text.
11. The author's use of the terms 'rightsizing' and 'slash-and-burn' primarily serves to illustrate which of the following points?
- Corporate downsizing is always detrimental to employee morale.
- The connotation of words can frame an action in either a positive or negative light.
- Executives and employees rarely agree on business strategies.
- The term 'downsizing' is more accurate than 'rightsizing'.
- Language is an ineffective tool for shaping public opinion.
Answer: The connotation of words can frame an action in either a positive or negative light.
The passage explicitly contrasts the connotations of 'rightsizing' (positive, suggesting efficiency) and 'slash-and-burn' (negative, suggesting destruction) to demonstrate how word choice influences perception. The author states, 'These linguistic choices are not neutral; they shape public perception and moral judgment,' directly supporting option b.
12. Which of the following is an assumption on which the argument relies?
- Workers in creative professions would also benefit from hourly breaks.
- The study's results for repetitive tasks apply to all types of work.
- Mental fatigue is the only factor affecting productivity.
- Short breaks are more effective than longer breaks.
- Data entry workers are representative of all employees.
Answer: The study's results for repetitive tasks apply to all types of work.
The argument criticizes the conclusion that all workers should take hourly breaks because the study only included repetitive tasks. This criticism assumes that the study's results may not apply to other types of work. Option b identifies this missing step: the argument relies on the assumption that the results for repetitive tasks apply to all work.