Is your DREAM to get selected in SBI Clerk 2019 recruitment? Well, then you must speed up your preparation as the Main exam which is the final step towards selection will take place on 10th August. The English Language is one of the subjects you’ll need to deal with and to help you keep your preparation up to the mark, here we provide you with a questionnaire of English Language to crack SBI Clerk Main. For other subjects, you can check the Dream SBI Clerk Selection Study Plan.
Directions (1-8): Read the following passage carefully and answer the questions given below it.
Certain words are given in bold to help you locate them while answering some of the questions.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that is concerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to think of price-fixing (the determination of prices by the seller) as both “normal” and having a valuable economic function. In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not.
Moreover, those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non-socialist countries other than the United states. These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace. Were there something peculiarly efficient about the free market and inefficient about price-fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have.
Socialist industry also works within a framework of controlled prices. In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system. Economists in the United States have hailed the change as a return to the free market. But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms; rather, Soviet firms have been given the power to fix prices.
Q1. The primary purpose of the passage is to
refute the theory that the free market plays a useful role in the development of industrialized societies
suggest methods by which economists and members of the government of the United States can recognize and combat price-fixing by large firms
argue that price-fixing, in one form or another, is an inevitable part of and benefit to the economy of any industrialized society
explain the various ways in which industrialized societies can fix prices in order to stabilize the free market
analyze the free markets in different economies.
Solution:
The author basically traces the evolution and attitude of different economies towards price fixing. Hence the primary purpose of the passage is the analysis of the free markets in different economies.
Q2. The passage provides information that would answer which of the following questions about price-fixing? I. What are some of the ways in which prices can be fixed? II. For what products is price-fixing likely to be more profitable that the operation of the free market? III. Is price-fixing more common in socialist industrialized societies or in non-socialist industrialized societies?
I only
III only
Both I and II
Both II and III
All I, II, and III
Solution:
Read the passage carefully, the author tries to provide vivid information that would answer the question of different ways in which prices can be fixed. Hence only statement (I) is correct.
Q3. The author’s attitude toward “Most economists in the United States” can best be described as
spiteful and envious
scornful and denunciatory
critical and condescending
ambivalent but deferential
uncertain but interested
Solution:
Refer the first few sentences of the passage, “Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that is concerned), established by anyone other than the aggregate of consumers seems pernicious.” Hence it can be said that the author’s attitude seems to be critical and condescending.
Q4. It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” because
people do not have confidence in large firms
people do not expect the government to regulate prices
most economists believe that consumers as a group should determine prices
most economists associate fixed prices with communist and socialist economies
most economists believe that no one group should determine prices
Solution:
Refer the first paragraph, “A price that is determined by the seller or, for that matter (for that matter: so far as that is concerned), established by anyone other than the aggregate of consumers seems pernicious.” Hence (c) is the correct option in context of the passage.
Q5. The suggestion in the passage that price-fixing in industrialized societies is normal arises from the author’s statement that price-fixing is
a profitable result of economic development
an inevitable result of the industrial system
the result of a number of carefully organized decisions
a phenomenon common to industrialized and non-industrialized societies
a phenomenon best achieved cooperatively by government and industry
Solution:
Refer the first paragraph, “In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires.” Hence option (b) is correct in context of the passage.
Q6. According to the author, price-fixing in non-socialist countries is often
accidental but productive
illegal but useful
legal and innovative
traditional and rigid
intentional and widespread
Solution:
Refer the second last paragraph, “Moreover, those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non-socialist countries other than the United states. These economies employ intentional price-fixing, usually in an overt fashion.” Hence (e) is the correct option.
Q7. According to the author, what is the result of the Soviet Union’s change in economic policy in the 1970’s?
Soviet firms show greater profit.
Soviet firms have less control over the free market.
Soviet firms are able to adjust to technological advances.
Soviet firms have some authority to fix prices.
Soviet firms are more responsive to the free market.
Solution:
. Refer the last paragraph, “In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system………………………. rather, Soviet firms have been given the power to fix prices.” Hence (d) is the correct option in context of the passage.
Q8. Choose the word most opposite in meaning to the word, “overt” as used in the passage.
Obvious
Conspicuous
Furtive
Malignant
Pestilential
Solution:
Overt means done or shown openly; plainly apparent. Furtive means secretive. Hence both are opposite in meanings.
Directions (9-15): Read the following passage carefully and answer the questions given below it.
Over the past decade, a richer, more confident China has attempted to assert greater global influence. President Xi Jinping has boldly presented himself as a statesman prepared to champion big global causes, from fighting climate change to promoting free trade. The most visible symbol of Xi’s ambitions is what’s now known as the Belt and Road initiative or One Belt, One Road initiative. A summit has also been organized by China which will see participation of heads from various countries to highlight the grandeur of the scheme.
The One Belt One Road initiative is the centerpiece of China’s foreign policy and domestic economic strategy. It aims to rejuvenate ancient trade routes–Silk Routes–which will open up markets within and beyond the region. Through this initiative, China’s plan is to construct roads, railways, ports, and other infrastructure across Asia and beyond to bind its economy more tightly to the rest of the world.
China is obviously going to benefit from the “Belt and Road Initiative,” but what is unclear is to what extent. Critics said that Beijing is going for a bigger role as a global superpower. With this in mind, having a direct link to major countries may not only boost its economic power, but also its political clout in both the Western and Eastern hemisphere. Also, many of China’s production sectors have been facing overcapacity since 2006. The Chinese leadership hopes to solve the problem of overproduction by exploring new markets in neighbouring countries through OBOR. The OBOR initiative will provide more opportunities for the development of China’s less developed border regions. China also intends to explore new investment options that preserve and increase the value of the capital accumulated in the last few decades. OBOR has the potential to grow into a model for an alternative rule-maker of international politics and could serve as a vehicle for creating a new global economic and political order. China has cash and deposits in Renminbi equivalent to USD 21 trillion, or two times its GDP, and expects that the massive overseas investment in the OROB will speed-up the internationalization of the Renminbi. OBOR is also seen as a strategic response to the military ‘re-balancing’ of the United States to Asia. China can also benefit from the New Silk Road project through other means like the easing up of growth of state-owned enterprises as well as an increase in the Chinese people’s income.
Many ASEAN countries are rich in resources but lacking in construction funding which slows their economic growth, causing an infrastructure deficit and resulting in a low level of industrial development. The OBOR Initiative is probably a direct response to the ASEAN countries’ cry for help. Infrastructures could boost the potential for growth in many underdeveloped regions. So far, no one has been willing to build it. Many of the countries involved are unstable and corrupt, which means operating in them is especially treacherous.
China’s remarkable economic ascent over the last four decades has steered clear of messy international entanglements that could undermine economic progress, and with it the public support that keeps them in power. While its economic rationale remains at best uncertain, the Belt and Road programme will embroil China in the tangled affairs of other countries to a degree unparalleled in its modern history. That’s an area where China’s strengths—its financial clout, skill at building infrastructure and top-down management style—aren’t likely to be much help. The scheme is ultimately meant to further Chinese economic interests by generating new business for Chinese companies, especially in sectors like steel and construction that suffer from excess capacity, and by promoting Chinese finance on an international stage. Participating governments could find themselves loaded down by debt from Chinese banks—all to pay Chinese companies and import Chinese workers to build infrastructure designed to expand Chinese exports. The Belt and Road initiative “risks stirring domestic political competition, fuelling networks of graft and rent-seeking, and not fulfilling its transformative potential”. That could spark local resistance and complaints that China is unfairly hoarding the benefits of the projects it sponsors, as has happened already in Africa and Sri Lanka. And while new pipelines and power plants may win China friends, especially among the poorer nations along its periphery, the fact that Belt and Road is a Chinese state initiative will create new frictions. India, for instance, has so far given the programme the cold shoulder, despite Chinese pleas.
Chinese political expansion and economic ambitions, packaged as OBOR, are two sides of the same coin. To be firm while responding to one facet, while making use of the opportunities that become available from the other, will largely depend on the institutional agency and strategic imagination India is able to bring to the table.
India now needs to match ambition with commensurate augmentation of its capacities that allows it to be a net security provider in the Indian Ocean region. This will require the government to not only overcome its chronic inability to take speedy decisions with respect to defence partnerships and procurement, but will also necessitate a sustained period of predictable economic growth; OBOR can assist in the latter. Chinese railways, highways, ports and other capacities can serve as catalysts and platforms for sustained Indian double-digit growth. Simultaneously, India can focus on developing last-mile connectivity in its own backyard linking to the OBOR — the slip roads to the highways, the sidetracks to the Iron Silk Roads. Currently, India has neither the resources nor the political and economic weight to put in place competitive and alternative connectivity networks on a global scale. Therefore, for the time being, it may be worthwhile to carefully evaluate those components of the OBOR which may, in fact, improve India’s own connectivity to major markets and resource supplies and become participants in them just as we have chosen to do with the AIIB and the NDB.
Ultimately, though, the success of the programme will depend on how transparent and inclusive China can bring itself to be. Its leaders will have to be willing to share not just the costs, but the benefits of these projects. They will have to bring locals into the decision-making process, be more attuned to their concerns and strive to meet high environmental and legal standards.
Q9. According to the passage, what is China’s One Belt, One Road initiative? (i) It is the initiative in which China make agreements with other countries regarding agriculture, infrastructure. (ii) It is the initiative which opens up markets within and beyond the region. (iii) It is the initiative of China which unites its economy with rest of the world.
Only (i) is true
Only (ii) is true
Both (i) and (iii) are true
Both (ii) and (iii) are true
All are true
Solution:
Refer to the second paragraph, “…beyond to bind its economy more tightly to the rest of the world.” and “….It aims to rejuvenate ancient trade routes–Silk Routes–which will open up markets within and beyond the region.” Hence both the statements (ii) and (iii) are true in context of the passage.
Q10. According to the passage, why is OBOR important to China?
It will provide more opportunities for the development of China’s less developed border regions.
It will speed up the internationalization of Renminbi.
It will boost its political and economic power by getting in link with the other countries.
It is important to China as it will increase the Chinese People’s Income.
All of the above.
Solution:
Refer to the third paragraph. All these points are clearly mentioned there. Hence all the statements are correct in context to the passage.
Q11. According to the passage, what India needs to do in contrast to OBOR?
(i) India has to bring locals into decision making process.
(ii) India must take necessary steps to make partnerships and procurement in defence.
(iii) Must evaluate the components of OBOR to improve the India’s connectivity to the major markets.
Only (i) is correct
Only (ii) is correct
Both (i) and (iii) are correct
Both (ii) and (iii) are correct
All are correct
Solution:
Refer to the second last paragraph, “This will require the government to not only overcome its chronic inability to take speedy decisions with respect to defence partnerships and procurement…” and “Therefore, for the time being, it may be worthwhile to carefully evaluate those components of the OBOR which may, in fact, improve India’s own connectivity to major markets and resource supplies and become participants in them just as we have chosen to do with the AIIB and the NDB.” Hence both the statements (ii) and (iii) are correct in context of the passage.
Q12. According to the passage, what could be the major reason for other countries to support China’s OBOR initiative?
It will help in infrastructure growth in other countries.
OBOR can serve as international rule maker to other countries for creating economic and political order.
OBOR can help other countries for generating new businesses and helps in military balancing.
To increase import and export services between the countries.
All of the above.
Solution:
Refer to the third sentence of fourth paragraph, “Infrastructures could boost the potential for growth in many underdeveloped regions. So far, no one has been willing to build it.” Hence option (a) is the most prominent reason in context of the passage.
Q13. According to the passage, what are the possible concerns for China regarding OBOR?
(i) OBOR programme will involve China in complicated issues of other countries.
(ii) Some nations like India do not support this initiative of China.
(iii) It may give rise to domestic political competition.
Only (i) is correct
Only (ii) is correct
Both (i) and (iii) are correct
Both (ii) and (iii) are correct
All are correct
Solution:
Refer to the fifth paragraph. All the points are clearly mentioned there. Hence all the above sentences are correct in context of the passage.
Q14. What is the tone of the author in the passage?
Satirical
Critical
Discriptive
Didactic
Cynical
Solution:
The author here gives the analysis of China OBOR initiative and its implications on other countries. Hence the author’s tone is critical.
Q15. Which of the following is true in context of the passage?
One Belt, One Road Initiative aims to desiccate the ancient trade routes.
One Belt, One Road Initiative is the chimerical ambition of China’s President Xi Jinping.
China’s Production sectors are facing intricacies like overcapacity.
Overproduction issue of China can be resolved by implementing the right policies.
All of the above sentences are true.
Solution:
Refer to the second sentence of the third paragraph, “Also, many of China’s production sectors have been facing overcapacity since 2006”. Hence only statement (c) is correct in context of the passage.
English Quiz For NIACL AO Mains 2024 Exa...
