In the following passage there are blanks, each of which has been numbered.…
2024
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 5
- A.
competition
- B.
dispersion
- C.
subservience
- D.
acquiescence
Attempted by 168 students.
Show answer & explanation
Correct answer: A
Answer: competition
Why this is correct:
The passage highlights that a few "superstar" firms capture large market shares and that the G20 should create a World Competition Network to restore market conditions. The noun "competition" directly names the condition the network is intended to restore.
Definition: competition — rivalry among firms to gain market share or customers. This matches the economic context of preventing excessive concentration and encouraging rivalry.
Why the other choices are wrong:
Dispersion means spreading out; it is the opposite of market concentration and therefore does not fit the sentence about firms dominating multiple markets.
Subservience means being subordinate; this is unrelated to the topic of market structure or restoring competitive market conditions.
Acquiescence means reluctant acceptance without protest; the passage calls for action to restore a condition, not for passive acceptance.
Note: The original solution incorrectly referenced an "option E." The correct word is "competition," and the explanation above clarifies why it fits and why the other words do not.