The Economist - 2 (News Based RC) | Verbal Ability (VA) & Reading Comprehension (RC) - CAT PDF Download

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Date: 20 November 2023

Passage

In a world rife with economic uncertainties and geopolitical turmoil, the superyacht industry is experiencing an unexpected surge. Despite the global challenges, including the COVID-19 pandemic and Western sanctions on Russia following its invasion of Ukraine, the sector is not just afloat but thriving. Giovanna Vitelli, chairwoman of Azimut Benetti, the world’s largest maker of superyachts, expresses surprise at this trend. Since the start of 2022, the industry has seen a turnover increase of about 20%, a figure echoed across the sector.
This boom in the superyacht market is intriguing, especially considering the recent drop in the number of the world’s billionaires. According to Forbes, the count fell to 2,640 in 2023 from 2,668 in 2022. The pandemic initially hit sales but later spurred a desire for seclusion and social distancing among the affluent, leading to increased interest in yachting. Vitelli notes a deeper psychological impact of the pandemic: a realization of life’s brevity and unpredictability, prompting the wealthy to indulge in their passions.
The latest yacht designs reflect this introspective mood. There is a shift from ostentation towards customization, with vessels being tailored to the specific tastes and hobbies of owners and their families. Environmental concerns are also influencing design choices. Features like solar panels, wind turbines, and hybrid-propulsion systems are becoming more common on luxury yachts, indicating a growing awareness of their environmental footprint.
Jeff Bezos, the Amazon boss, may be setting a new trend with his recent acquisition of Koru, the world’s largest sailing yacht at 127 meters. However, this eco-friendly choice comes with a caveat: Koru is accompanied by a diesel-engined support vessel, nearly as large as a mega-yacht itself, carrying extra supplies and a helicopter pad. This juxtaposition highlights the complexities and contradictions in the superyacht industry's evolution.
Q1: What has been the trend in the superyacht industry since the start of 2022?
(a) A significant decline due to economic challenges
(b) A surprising increase in turnover
(c) Stagnation in sales and production
(d) A shift towards smaller, more economical yachts
Ans: (b)
Sol: The passage states that despite global challenges, the superyacht industry has seen a turnover increase of about 20% since the start of 2022.

Q2: What psychological impact of the pandemic is noted by Giovanna Vitelli regarding the superyacht market?
(a) A desire for more affordable luxury
(b) A realization of life’s brevity and unpredictability
(c) Increased interest in sustainable living
(d) A shift towards more practical investments
Ans: (b)
Sol: Vitelli notes that the pandemic led to a deeper psychological realization among the wealthy about life's brevity and unpredictability, influencing their decision to indulge in yachting.

Q3: How are environmental concerns influencing the design of luxury yachts?
(a) By reducing the size of yachts
(b) By incorporating features like solar panels and hybrid-propulsion systems
(c) By completely eliminating the use of diesel engines
(d) By focusing solely on sailing yachts
Ans: (b)
Sol: The passage mentions that environmental concerns are leading to the inclusion of features like solar panels, wind turbines, and hybrid-propulsion systems in luxury yachts.

Q4: What contradiction is highlighted in the passage regarding Jeff Bezos's yacht, Koru?
(a) It is the largest yacht but has minimal facilities
(b) Despite being eco-friendly, it is accompanied by a diesel-engined support vessel
(c) It is not as luxurious as other mega-yachts
(d) It is a sailing yacht that rarely uses wind power
Ans: (b)
Sol: The passage highlights a contradiction in Bezos's choice of an eco-friendly sailing yacht, Koru, which is paradoxically accompanied by a diesel-engined support vessel, indicating the complexities in the industry's move towards sustainability.