ParaSummary Question 8 - CAT 2021
Passage:
Brazil’s growth rate has been low, yet most Brazilians say their financial situation has improved, and they expect it to get even better. This is because most incomes are rising fast, with higher minimum wages and very low unemployment. The result is falling inequality and a growing middle class — the result of economic stabilization, improved social security and universal primary education. But despite recent improvements the Brazilian economy is still painfully unequal, with poor Brazilians paying the biggest share of their income in taxes and getting the least back in government services.
A) Economic reforms have benefitted many Brazilians, but they are unaware of the impending problems from rising inequalities in their society.
B) Good economic indicators have masked the unfair taxation of the poor that is likely to destabilise the Brazilian economy in the next few years.
C) Most Brazilians feel they have benefitted from recent economic events, but the poor continue to be dealt unfairly by the state.
D) With rising incomes and falling unemployment, most Brazilians are being misled into thinking that their economy is doing well.
Step-by-Step Explanation
- Correct Answer: C
- Explanation: The text points out a fascinating contradiction in Brazil: at an individual level, lower unemployment and rising minimum wages make citizens optimistic about their finances, yet systemically, the economy remains profoundly unequal due to a regressive tax system that treats the poor unfairly. Option C directly highlights this split.
- FundaMakers Tip: Weed Out Speculative Judgments. Options A, B, and D use speculative or emotionally manipulative words like "unaware of impending problems", "likely to destabilize", or "misled." The author does not imply that the citizens are being intentionally fooled; their personal financial progress is real despite structural inequities.