English Quiz for IPPB Scale I Prelims Exam 2016-17 – Set 4

Read the following passage carefully and answer the questions given below it. Certain words/ phrases have been printed in bold to help you locate them while answering some of the questions.

Asia’s rapid rise is the most successful story of economic development in recent history. Income per capita reached nearly $5.000 in purchasing power parity terms in 2010. Investment rates averaged 35% of GDP over the decade. The number of people living below the $1.25-a-day poverty line fell by 430 million between 2005 and 2010. With such achievements at a time when much of the rest of the world struggles with austerity measures and economic recovery. Asian leaders might be tempted to switch to autopilot. But closer examination of the region’s economic and social prospects soon reveals many paradoxes. The world’s fastest growing region remains home to nearly half the world’s extreme poor. While Asia has made tremendous inroads in the fight against poverty, not enough of the region’s economic prosperity is reaching its poorest people. In urban areas of China, for example, the Gini coefficient (a measurement used to calculate inequality) has risen more than 35% since 1990. Nearly half a billion Asians still lack access to safe drinking water and infant mortality in many nations is more than 10 times higher than the levels seen in developed economics.

While “Factory Asia” may be true for manufacturing and information technology services, vast number of its people are illiterate and unemployed. Its financial sector is underdeveloped, with many people having no access to simple banking, let alone other financial services. Asia’s future prosperity, and the eradication of extreme poverty, will require much more than simply high growth. Growth must be accompanied by a narrowing of inequality. It is essential to balance the region’s economic expansion with more inclusive policies. Cut off by poor roads, telecommunications, or government policies that don’t allow them to easily borrow or save, Asia’s poor and vulnerable are watching the chasm between rich and poor grow ever wider. That gap in prosperity can aggravate simmering social, economic and political tensions. Asian governments can help stem widening inequality by creating better conditions for the private sector to take the lead on economic expansion, continuing to promote economic diversification, and by spending on social services, education and healthcare, and regional road, sea and air networks that will open more opportunities to more people. There are areas where western governments can help too. By investing in infrastructure alongside public lenders, they can help attract much larger sums from the private sector.

Asia can also capitalise on financial lessons from the west, particularly when it comes to setting banking regulations, strengthening regional links, and promoting bonds to better utilise Asian savings. When describing where Asia stands today, it’s useful to remember that what we are witnessing is not the emergence of Asia, but rather the re-emergence of Asia. In 1820, Asia accounted for about 60% of total global output, with China and India together accounting for nearly half of global GDP. This was followed by nearly two centuries of economic decline once the western industrial evolution took hold – a trend that, since the information age, has been solidly reversed. By implementing structural reforms and opening their economics. China and others have rapidly emerged as engines of the global economy. The recent Asian Development Bank study suggests that we could see Asia producing over half of global GDP by mid-century, and 3 billion Asians would be considered part of the rich world, with capita income levels equal to that of Europe today. Carefully calibrated government support can help steer Asia’s economic potential, reducing political risks while opening new markets to help move the west beyond the current crisis. In the long run, an Asian economy built on sustainable growth can support greater levels of trade, and generate growth in tourism. Conversely, a weaker Asia presents a host of threats to the west’s future growth and prosperity.

Embracing globalisation and regional co-operation has helped bring developing Asia success. By further strengthening this process by focusing on greater access and inclusion within economics, and pursuing sustainable development and improved governance, an “Asian century” is both plausible and within reach. But policies that worked when Asia was low-income and capital scarce are less likely to work today and unlikely to work in the future. Asia’s leaders must devise bold and innovative national policies while pursuing regional and global co-operation. Long term prosperity will depend on the intensity of resource use, including water and food, and success in managing the region’s carbon footprint. Asia’s challenges remain formidable, and its future prosperity must be earned. The right policy choices today could indeed make this the “Asian century”, but this is far from preordained.

1. Which of the following statement (s) is/are correct in the context of the passage?

I. Asia’s per capita income reached approximately $5000 in purchasing power parity terms in 2010.

II. The number of people living below the $1.25 a day poverty line in Asia fell by 430 million between 2005 and 2010.

III. In 1820, Asia accounted for about 60% of total global output.

(a) Only I

(b) Only II

(c) Both I and II

(d) Both II and III

(e) All I, II and III

2. What in your opinion should be the appropriate title of the given passage?

(a) Asia’s Economic Rise and Paradoxes

(b) Asia’s Rise and Europe’s Re-emergence

(c) Economic Backwardness of Asia

(d) Developed and Developing Regions of the world

(e) None of these

3. Which of the following is not true as per the given information in the passage?

(a) In urban areas of China, the Gini coefficient that is a measurement used to calculate inequality has risen more than 45% since 1990.

(b) Nearly half a billion Asians still lack access to safe drinking water.

(c) The infant mortality rate in many Asian nations is more than 10 times higher than the levels seen in developed economics.

(d) Investment rates in Asia averaged 35 per cent of Gross Domestic Product over the decade

(e) Embracing globalisation and regional cooperation has helped bring developing Asia success.

4. In the author’s opinion what are the areas where western government can help Asia boost economic development ?

I. By investing in infrastructure alongside public lenders. western governments can help attract much larger sums from the private sector.

II. Asia can capitalise on financial lessons from the west, Particularly when it comes to setting banking regulations, strengthening regional links and promoting bonds to better utilise Asian savings.

III. “Factory Asia” can make vast number of its people literate and employed.

(a) Only II

(b) Only III

(c) Both 1 and III

(d) Both II and III

(e) Both I and II

5. What suggestions has the author of this passage made that can help Asian governments stem widening inequality in the region ?

I. By creating better conditions for the private sector to take the lead on economic expansion.

II. By continuing to promote economic diversification.

III. By spending on social services, education and healthcare and regional road, sea and air networks that will open more opportunities to more people.

(a) Only I

(b) Both II and III

(c) Both I and II

(d) Both I and Ill

(e) All I, II and III

6. Which of the following statements is not correct as per the given information in the passage ?

(a) According to the Asian Development Bank study. Asia can produce over half of global GDP by mid-century.

(b) In 1820. China and India together accounted for nearly half of global GDP.

(c) The author opines the necessity to balance the Asian region’s economic expansion with more inclusive policies.

(d) The widening gap between rich and poor people can aggravate simmering social, economic and political tensions.

(e) The world’s fastest growing Asian region remains home to more than sixty five per cent of the world’s extreme poor.

Directions (Qs.7-8) : Choose the word/group of words which is most similar in meaning to the word/ group of words printed in bold as used in the passage.

7. Austerity

(a) auscultation (b) decoration

(c) extravagance (d) spendthrift

(e) simplicity

8. Inroads

(a) Noticeable effect (b) making road

(c) insecurities (d) inquest

(e) identification

Directions (Qs.9-10) : Choose the word/group of words which is most opposite in meaning to the word / group of words printed in bold as used in the passage.

9. Aggravate

(a) worsen (b) irritate

(c) aggregate (d) assuage

(e) astonish

10. Simmering

(a) seething (b) calm

(c) boiling (d) simulating

(e) exhilarating