CAT Questions | CAT Paragraph Completion Questions

CAT Verbal Ability | CAT Para Completion
× CAT Questions

CAT Verbal
Sentence Rearrangement Sentence Correction Sentence Elimination Reading Comprehension Critical Reasoning Word Usage Para Summary Text Completion
CAT Quantitative Aptitude
HCF and LCM Factors Remainders Factorials Digits Ratios,Mixtures;Averages Percents; Profits; SICI Speed & Time; Races Logarithms and Exponents Pipes,Cisterns; Work,Time Set Theory Geometry Coordinate Geometry Mensuration Linear & Quadratic Equations Functions Inequalities Polynomials Progressions Permutation Probability
DI LR: Bar Graphs DI LR: Pie Charts DI LR: Multiple Graphs DI LR: Word Problems DI LR: Line Graphs DI LR: Sequencing DI LR: Grid Puzzles DI LR: Math Puzzles DI LR: Visualization DI LR: Other Patterns DI LR: CAT 2017 Cet DI LR: CAT 2017 Rural Survey DI LR: CAT 2017 Happiness DI LR: CAT 2017 Airlines DI LR: CAT 2017 Travel Route DI LR: CAT 2017 Food Delivery DI LR: CAT 2017 Square Layout DI LR: CAT 2017 Team Project DI LR: CAT 2017 Assets DI LR: CAT 2017 Pizza DI LR: CAT 2017 Electives DI LR: CAT 2017 Chess DI LR: CAT 2017 Dorms DI LR: CAT 2017 Tea DI LR: CAT 2017 Friends DI LR: CAT 2017 Security Scan

CAT Online Coaching
CAT Question MenuCAT Questions

The question is from CAT Paragraph Completion. CAT exam will have 1~2 questions from Paragraph Completion. Solve CAT Questions from Paragraph Completion to get more practice and 2IIMs CAT questions bank provides you with CAT questions from Para Completion that can help you gear for CAT Exam.

Question 35: Many countries with abundant natural resources seem to suffer from slower economic growth, more corruption, more conflict, more authoritarian politics and more poverty than their peers with fewer resources. Academics studying this oddity have worked out that the poor performance of these countries isn't only because powerful crooks siphon off money and stash it offshore, though that is also true. The startling idea that they have discovered is that money flowing from natural resources could make the people in these countries even worse off than if the riches had never been discovered.

  1. High corruption in these countries means that while the elite get very rich, their compatriots suffer extreme hardship.
  2. However, some mineral-rich countries, including Norway, admittedly seem to have escaped what the academics call as the resource curse.
  3. More money can make you poorer: this is also sometimes known as the Paradox of Poverty from Plenty.
  4. Prosperity of the elite in these countries causes sky-rocketing prices, which in turn adversely affects local industry and agriculture.

Best CAT Online Coaching
Try upto 40 hours for free
Learn from the best!

2IIM : Best Online CAT Coaching.

Best CAT Coaching in Chennai

CAT Coaching in Chennai - CAT 2022
Limited Seats Available - Register Now!

Explanatory Answer

Method of solving this CAT Question from Paragraph Completion:

The paragraph given explores a paradox : countries with abundant natural resources are worse off in terms of economic growth and poverty than those with fewer resources. Academics studying this oddity have discovered that money flowing from natural resources actually makes the people in these countries poorer than if the resources weren't discovered.

Looking at the options, we see that option A talks of corruption and wealth inequality in resource-rich countries. These are ideas already discussed in the first line of the paragraph. The paragraph then moves on to describe what academics studying this have discovered. So, option A does not make sense as the last line of the paragraph.

Option B talks of a tangential idea. That some mineral-rich countries have escaped the resource curse is something unrelated to what is discussed in the given paragraph.

Option C seems to be a good option to complete the paragraph. The penultimate line talks of poverty that comes with the discovery of natural resources. Option C carries forward this idea, that more money (from resources) can actually make people poorer, and labels it the "Paradox of Poverty from PLenty".

Option D also seems to be a possibility. D seems to offer an explanation as to why the country being resource-rich can make the people poorer: the prosperous rich drive up the prices and local industry and agriculture are adversely impacted by the sky-rocketing prices.

Now, to choose between C and D, let us look at how the paragraph is structured. The paragraph presents the premise that resource-rich countries are often worse off than their peers with fewer resources. It describes what academics studying this oddity have discovered. The penultimate line talks of a "startling idea" that the academics have discovered. Option C gives a name for this idea/paradox, while D gives one possible reason for the wealth inequality. D doesn't conclude the paragraph as well as C. Option C fits better, as the focus of the paragraph is on the idea discovered by the academics.

The question is " Choose the Sentence that completes the Paragraph "

Hence, the answer is Sentence C

Choice C is the correct answer.


CAT Questions | CAT Quantitative Aptitude

CAT Questions | CAT DILR

CAT Questions | Verbal Ability for CAT

Where is 2IIM located?

2IIM Online CAT Coaching
A Fermat Education Initiative,
58/16, Indira Gandhi Street,
Kaveri Rangan Nagar, Saligramam, Chennai 600 093

How to reach 2IIM?

Phone: (91) 44 4505 8484
Mobile: (91) 99626 48484
WhatsApp: WhatsApp Now