UPSC Prelims 2017 · CSAT

Question 44: Reading Comprehension

Passage beginning “The IMF has pointed out that the…” — Passage—4 · as printed by UPSC

Which among the following is the most logical, rational and critical inference that can be made from the above passage?

aOnce a country reaches middle-income stage, it runs the risk of falling productivity which leads to stagnant incomes.

bFalling into middle-income trap is a general characteristic of fast growing economies.

cThere is no hope at all for emerging Asian economies to sustain the growth momentum.

dAs regards growth of productivity, the performance of Asian economies is not satisfactory.

AnswerUPSC’s answer is (a).

The passage reports a warning that fast-growing Asian economies may stall at middle income: average incomes stop rising well before reaching the developed West's levels. Causes include weak infrastructure and institutions and unfavourable macroeconomic conditions, but the overall cause is a collapse in productivity growth. The apt inference is that a country reaching middle income risks falling productivity and stagnant incomes. Options stating a general rule, no hope, or present poor performance overstate.

Why each option is right or wrong

(a) Correct: the risk arises once incomes have risen, with falling productivity leading to stagnant incomes.
(b) The passage says Asian economies face the risk, not that it is a general characteristic of all fast-growing economies.
(c) No hope at all is far stronger than the passage's warning of a risk.
(d) It describes a risk of falling productivity growth, not present unsatisfactory performance.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2017, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.