Paracompletion Question 3 - CAT 2025

The paragraph is basically saying that inequality has become part of the way the economy grows. Wealth is not only connected to how much someone earns; it is also affected by things like property, investments, government policies, and other economic conditions. At the same time, wages have stayed low while income from wealth has increased.

The sentence fits best in blank (4) because it naturally follows the point about capital income being increased while wages have not grown much. It explains what this means in simple terms: the benefits from higher productivity are going more toward wealthy people instead of improving the standard of living for everyone.

The other blanks are less suitable. Blank (1) comes too early because the paragraph has not yet explained the difference between wealth and wages. Blank (2) would interrupt the explanation of how policies influence wealth. Blank (3) is also not a good fit because it comes at a point where the paragraph is shifting toward the effects of these changes.

So, the correct answer is Blank (4).