RC: Current Affairs - 2 | 100 RCs for Practice - CAT PDF Download

Passage

Direction: The passage below is accompanied by a set of questions. Choose the best answer to each question.
The year 2023 has been marked by significant economic uncertainty. The global economy, still reeling from the effects of the COVID-19 pandemic, faces new challenges. Inflation rates have soared in many countries, leading central banks to implement aggressive monetary policies. The conflict in Eastern Europe has further exacerbated the situation, causing disruptions in energy supplies and global trade.
One of the most pressing issues is the rising cost of living. Inflation has eroded the purchasing power of consumers, leading to widespread discontent and protests in several countries. Governments are under pressure to provide relief through subsidies and economic packages, but these measures have their own long-term implications for national budgets and debt levels.
The tech industry, which had been a beacon of growth, is also facing a slowdown. The stock market valuations of tech giants have seen a significant correction, and there is a wave of layoffs across the sector. This has raised questions about the sustainability of the high-growth model that the tech industry has been known for.
Despite these challenges, there are signs of resilience. Some economies are showing robust recovery, and there is a renewed focus on sustainable and inclusive growth. The crisis has also accelerated digital transformation and innovation, opening new avenues for economic development.
As the world navigates the uncertainties of 2023, the global economic outlook remains a complex mosaic of challenges and opportunities. The decisions made by policymakers, businesses, and individuals will shape the trajectory of the global economy in the years to come.
Q1: What has been identified as a cause for the economic uncertainty in 2023?
(a) The robust recovery of some economies.
(b) The acceleration of digital transformation.
(c) The conflict in Eastern Europe.
(d) The focus on sustainable and inclusive growth.

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Q2: According to the passage, what impact has inflation had in 2023?
(a) It has led to a wave of layoffs across the tech sector.
(b) It has eroded the purchasing power of consumers.
(c) It has accelerated digital transformation and innovation.
(d) It has corrected the stock market valuations of tech giants.

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Q3: The passage suggests that the tech industry in 2023 is:
(a) Continuing its high-growth model without any challenges.
(b) Facing a slowdown and a wave of layoffs.
(c) The primary driver of the global economic recovery.
(d) Unaffected by the global economic uncertainty.

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Q4: What does the author imply by the term "complex mosaic" in the context of the passage?
(a) A simple and straightforward economic situation.
(b) A situation characterized by uniform challenges and opportunities.
(c) A situation with diverse and interrelated economic challenges and opportunities.
(d) A situation where the global economic outlook is entirely bleak.

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