In the following passage there are blanks, each of which has been numbered.…
2025
In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words/phrases are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.
The digital economy is carving out new divides between capital and labor, by allowing one firm, or a small number of firms, to capture an increasingly large market share. With “superstar” companies operating globally, and (_____1_____) markets in multiple countries simultaneously, market concentration throughout the Group of 20 developed and major emerging economies has increased considerably in just the past 15 years. To address this phenomenon, the G20 should create a World Competition Network to restore competition and address income inequality between capital and labor. As a larger share of total income shifts to capital across many G20 countries, the World Competition Network would seek to (_____2_____) the decline in labor’s share of GDP. During the period after World War II, 70% of national GDP went to labor income, and the remaining 30% to capital income. John Maynard Keynes described the (_____3_____) of the labor share as something of a “miracle.” But the rule has since broken down. Between the mid1980’s and today, labor’s share of world GDP declined to 58%, while capital’s share rose to 42%.The digital economy is carving out new divides between capital and labor, by allowing one firm, or a small number of firms, to capture an increasingly large market share. With “superstar” companies operating globally, and dominating markets in multiple countries simultaneously, market (_____4_____) throughout the Group of 20 developed and major emerging economies has increased considerably in just the past 15 years. To address this phenomenon, the G20 should create a World Competition Network to restore (_____5_____) and address income inequality between capital and labor.
Find the appropriate word in each case 4
- A.
scattering
- B.
vivisection
- C.
severance
- D.
concentration
Attempted by 157 students.
Show answer & explanation
Correct answer: D
Correct answer: concentration
Explanation: "Concentration" refers to the extent to which market share is held by a small number of firms. The passage discusses "superstar" companies operating globally and dominating markets in multiple countries; therefore the sentence requires a word that captures increasing centralization or dominance of market share.
Why this fits: "market concentration" is a standard economic term meaning a few firms control a large share of a market, which matches the context of rising dominance by "superstar" companies.
Why the other choices are wrong:
"Scattering": means spreading out or dispersal, which is the opposite of growing dominance.
"Vivisection": refers to cutting into living animals or detailed critical analysis of a subject, and is unrelated to market structure.
"Severance": means separation or dismissal and does not describe the consolidation of market share.
Connection to the passage: The following sentence mentions restoring competition and addressing income inequality; reducing market concentration is consistent with promoting competition and preventing a shift of income from labor to capital.