Critical Analysis & Reasoning Skills Practice Questions: 4 | Critical Analysis & Reasoning Skills for MCAT PDF Download

According to a report by Oxfam International in 2014, there is a significant wealth disparity in the world, with the richest 85 people possessing as much wealth as the poorest 3.5 billion individuals. Additionally, nearly half of all wealth is owned by only 1 percent of the global population. Inequality measures often follow a U-shaped pattern, declining after reforms implemented following the Great Depression but now returning to levels not seen since the 1920s. These statistics have led prominent figures, including the President of the United States and the Pope, to acknowledge the issue of inequality.

The origin of economic inequality and its perpetuation is the central question of interest. The author argues that this development is primarily a political outcome rather than an economic one. It is the result of deliberate decisions made by political leaders and influential socioeconomic elites, rather than being a natural consequence of market forces as suggested by other scholars.

The author highlights the political significance of two factions, laborers and capitalists, whose fortunes have been recognized by economists like Karl Marx and Thomas Piketty. When labor was politically dominant, such as during the aftermath of Franklin D. Roosevelt's New Deal, inequality decreased. However, with the rise of neoliberalism, embraced by leaders like Margaret Thatcher, Tony Blair, Ronald Reagan, and Bill Clinton, inequality started to rebound.

Neoliberalism is often associated with promoting "free markets," but the author argues that a more accurate characterization is the promotion of the free movement of capital. Capital tends to accumulate in tax havens, benefiting the planet's wealthiest individuals. While few people would explicitly vote for this program, governments in democratic nations often have officials who unknowingly or knowingly act in ways that further wealth polarization.

The ascendancy of neoliberal ideology can be attributed, in part, to discrepancies in organization. The decline in labor union participation in the United States serves as an example. Between 1940 and 1980, a significant portion of employed workers were members of labor unions, coinciding with a decrease in inequality. However, union participation declined precipitously in the 1980s, leading to ongoing erosion, with only a fraction of US workers being union members today. In contrast, capitalists have become increasingly organized, which coincided with the disempowerment of unions. The Powell Memorandum, written in 1971, advocated for coordinated action among capitalists, highlighting the importance of long-term planning and joint efforts.
Q.1. According to the passage, what did a report by Oxfam International reveal about global wealth distribution?
A. The poorest 85 people possess as much wealth as the richest 3.5 billion.
B. The wealthiest 1 percent owns nearly half of all wealth.
C. The world's richest individuals are becoming less wealthy.
D. Inequality levels have remained the same since the 1920s.

Correct Answer is Option (b)
The passage states that according to the Oxfam International report, nearly half of all wealth is owned by just 1 percent of the global population.

Q.2. According to the author, what is the primary cause of increasing wealth polarization?
A. Market forces
B. Economic fluctuations
C. Deliberate political decisions
D. Social inequality

Correct Answer is Option (c)
The author contends that increasing wealth polarization is ultimately a political outcome resulting from deliberate decisions made by political leaders and influential socioeconomic elites.

Q.3. What is the author's view on the relationship between labor dominance and inequality?
A. Labor dominance leads to increased inequality.
B. Labor dominance leads to decreased inequality.
C. Labor dominance has no impact on inequality.
D. The author does not express a view on this relationship.

Correct Answer is Option (b)
The passage states that when labor was politically ascendant, such as during the aftermath of FDR's New Deal, inequality decreased.

Q.4. What does the author suggest is the main focus of neoliberalism?
A. The promotion of free markets
B. The regulation of capital movement
C. The improvement of labor conditions
D. The reduction of income inequality

Correct Answer is Option (a)
The author suggests that although neoliberalism is associated with promoting free markets, a better characterization is the promotion of the free movement of capital.

Q.5. What led to the decline in labor union participation in the United States?
A. The rise of neoliberal ideology
B. The influence of Karl Marx
C. The disempowerment of capitalists
D. The implementation of the Powell Memorandum

Correct Answer is Option (a)
The passage states that the decline in labor union participation in the United States occurred with the rise of neoliberalism.