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The question is from CAT Parajumbles. CAT exam will have 4~5 questions from Sentence Rearrangement. Solve CAT Questions from Parajumbles to get more practice and 2IIMs CAT questions bank provides you with CAT questions that can help you gear for CAT Exam. .

Question 45: A. More recently, the concentration of a few dominant players in many industries, along with the decline of labor unions, has raised the issue of monopsony once again.

B. Monopsony power was a key feature of the company towns that helped define the Industrial Revolution, since everybody served one employer in most of these towns.

C. In the labor market context, this means that negotiating ability is tilted toward corporations, making it difficult for workers to push for higher pay.

D. Monopsony is a situation wherein there are many providers of a product in the market but only one dominant buyer, who holds all the cards and can drive prices down.

  1. BACD
  2. BADC
  3. DCBA
  4. DBAC

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Explanatory Answer

Method of solving this CAT Question from Sentence Rearrangement:

The sentences given relate to an idea called 'monopsony'. D defines this, so it is a good idea to solve this question starting from D.

D states that in a monopsony, there are many providers of a product, but only one dominant player who can drive prices down. C describes the effect of this in the labor market context: workers find it difficult to push for higher pay in a monopsony. So, C follows D.

Now, B talks of monopsony in the past tense, as a key feature of the company towns that helped define the Industrial Revolution. A, on the other hand, explains why, more recently , the issue of monopsony has arisen once again . Chronologically, A follows B.

So, we now have two units- DC and BA. Which of these goes first? DCBA is a better order than BADC, as D defines the term that is the main idea of the paragraph.

The question is " Arrange the sentences in the correct order "
The order is DCBA

Hence, the answer is DCBA

Choice C is the correct answer.


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