Sentence Rearrangement - Government Intervention In Markets

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Sentence Rearrangement - Government Intervention In Markets

    A. Every time financial speculation creates a crisis, governments are expected to tax their citizens and use that money to save banks and financial institutions.

    B. Liberalism insisted on the separation of the state and the market, and decried government interference in markets.

    C. Even if one argues, as some do, that liberal capitalism was always to some extent state capitalism, this signifies a major shift.

    D. Neo-liberalism believes that governments should intervene in markets — but only on the side of banks, finance capitalists and lending agencies.

    1. ADBC
    2. BADC
    3. DABC
    4. BDAC


  • Correct Answer
    Choice D. BDAC

Detailed Solution

Sentence B talks of liberalism and how it decried government interference in markets. Notice that of the given sentences, B is the only sentence in past tense. It is likely that B is the first sentence of the paragraph.

Now, considering the other three, the only sentence that links to B is D, which talks of neo-liberalism and how it believes in government intervention in markets, on the side of banks and financial institutions. D follows B, presenting the contrast between the two views.

Sentence A talks of governments being expected to “save banks and financial institutions” when there is a crisis due to “financial speculation”. This relates to neo-liberalism.

Sentence C refers to a “major shift”. What shift? The shift in thinking that governments should intervene in markets to favor financial institutions. So, C follows the sentence group BD.

Now, while both A and C make sense immediately after D, C is a better choice to complete the paragraph, compared to A. Sentence A adds to D, providing more information on neo-liberalist thinking. C, on the other hand, sums up the key idea of the paragraph that neo-liberalism is very different from liberalism.

BDAC is the correct order.

Correct Answer: BDAC

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