CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 1
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.
Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions….
It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—“preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can’t afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.
Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines…. This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.
Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller’s account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.
We can infer from the passage that the term '‘homo economicus” refers to someone who
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 2
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.
Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions….
It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—“preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can’t afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.
Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines…. This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.
Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller’s account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.
In the first paragraph the author is making the point that economists like Becker
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 3
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.
Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions….
It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—“preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can’t afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.
Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines…. This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.
Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller’s account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.
The author critiques Schiller’s approach to behavioural economics for
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 4
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Oftentimes, when economists cross borders, they are less interested in learning from others than in invading their garden plots. Gary Becker, for instance, pioneered the idea of human capital. To do so, he famously tackled topics like crime and domesticity, applying methods honed in the study of markets to domains of nonmarket life. He projected economics outward into new realms: for example, by revealing the extent to which humans calculate marginal utilities when choosing their spouses or stealing from neighbors. At the same time, he did not let other ways of thinking enter his own economic realm: for example, he did not borrow from anthropology or history or let observations of nonmarket economics inform his homo economicus. Becker was a picture of the imperial economist in the heyday of the discipline’s bravura.
Times have changed for the once almighty discipline. Economics has been taken to task, within and beyond its ramparts. Some economists have reached out, imported, borrowed, and collaborated—been less imperial, more open. Consider Thomas Piketty and his outreach to historians. The booming field of behavioral economics—the fusion of economics and social psychology—is another case. Having spawned active subfields, like judgment, decision-making and a turn to experimentation, the field aims to go beyond the caricature of Rational Man to explain how humans make decisions….
It is important to underscore how this flips the way we think about economics. For generations, economists have presumed that people have interests—“preferences,” in the neoclassical argot—that get revealed in the course of peoples’ choices. Interests come before actions and determine them. If you are hungry, you buy lunch; if you are cold, you get a sweater. If you only have so much money and can’t afford to deal with both your growling stomach and your shivering, which need you choose to meet using your scarce savings reveals your preference.
Psychologists take one look at this simple formulation and shake their heads. Increasingly, even some mainstream economists have to admit that homo economicus doesn’t always behave like the textbook maximizer; irrational behavior can’t simply be waved away as extra-economic expressions of passions over interests, and thus the domain of other disciplines…. This is one place where the humanist can help the economist. If narrative economics is going to help us understand how rivals duke it out, who wins and who loses, we are going to need much more than lessons from epidemiological studies of viruses or intracranial stimuli.
Above all, we need politics and institutions. Shiller [the Nobel prize winning economist] connects perceptions of narratives to changes in behavior and thence to social outcomes. He completes a circle that was key to behavioral economics and brings in storytelling to make sense of how perceptions get framed. This cycle (perception to behavior to society) was once mediated or dominated by institutions: the political parties, lobby groups, and media organizations that played a vital role in legitimating, representing, and excluding interests. Yet institutions have been stripped from Shiller’s account, to reveal a bare dynamic of emotions and economics, without the intermediating place of politics.
“Times have changed for the once almighty discipline.” We can infer from this statement and the associated paragraph that the author is being
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 5
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . .
It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middle-class wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle-aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid-30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds—lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work-life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
In the context of the passage we can infer that to succeed in the liquor industry in China, a marketing firm must consider all of the following factors affecting the Chinese liquor market EXCEPT that
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 6
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . .
It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middle-class wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle-aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid-30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds—lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work-life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
The phrase “would make it an invention to rival gunpowder” has been used in the passage in a sense that is
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 7
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . .
It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middle-class wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle-aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid-30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds—lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work-life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
In the context of the passage, it is most likely that the author refers to Moutai’s marketing strategy as “the unholy trinity” because
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 8
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . .
It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middle-class wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle-aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid-30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds—lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work-life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
Which one of the following is both a reason for Moutai’s success as well as a possible threat to that success?
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 9
The passage below is accompanied by a set of questions. Choose the best answer to each question.
The sleights of hand that conflate consumption with virtue are a central theme in A Thirst for Empire, a sweeping and richly detailed history of tea by the historian Erika Rappaport. How did tea evolve from an obscure “China drink” to a universal beverage imbued with civilising properties? The answer, in brief, revolves around this conflation, not only by profit-motivated marketers but by a wide variety of interest groups. While abundant historical records have allowed the study of how tea itself moved from east to west, Rappaport is focused on the movement of the idea of tea to suit particular purposes.
Beginning in the 1700s, the temperance movement advocated for tea as a pleasure that cheered but did not inebriate, and industrialists soon borrowed this moral argument in advancing their case for free trade in tea (and hence more open markets for their textiles). Factory owners joined in, compelled by the cause of a sober workforce, while Christian missionaries discovered that tea “would soothe any colonial encounter”. During the Second World War, tea service was presented as a social and patriotic activity that uplifted soldiers and calmed refugees.
But it was tea’s consumer-directed marketing by importers and retailers – and later by brands – that most closely portends current trade debates. An early version of the “farm to table” movement was sparked by anti-Chinese sentiment and concerns over trade deficits, as well as by the reality and threat of adulterated tea containing dirt and hedge clippings. Lipton was soon advertising “from the Garden to Tea Cup” supply chains originating in British India and supervised by “educated Englishmen”. While tea marketing always presented direct consumer benefits (health, energy, relaxation), tea drinkers were also assured that they were participating in a larger noble project that advanced the causes of family, nation and civilization.
Rappaport’s treatment of her subject is refreshingly apolitical. Indeed, it is a virtue that readers will be unable to guess her political orientation: both the miracle of markets and capitalism’s dark underbelly are evident in tea’s complex story, as are the complicated effects of British colonialism. Commodity histories are now themselves commodities: recent works investigate cotton, salt, cod, sugar, chocolate, paper and milk. And morality marketing is now a commodity as well, applied to food, “fair trade” apparel and eco-tourism. Yet tea is, Rappaport makes clear, a world apart – an astonishing success story in which tea marketers not only succeeded in conveying a sense of moral elevation to the consumer but also arguably did advance the cause of civilisation and community.
I have been offered tea at a British garden party, a Bedouin campfire, a Turkish carpet shop and a Japanese chashitsu, to name a few settings. In each case the offering was more an idea – friendship, community, respect – than a drink, and in each case the idea then created a reality. It is not a stretch to say that tea marketers have advanced the particularly noble cause of human dialogue and friendship.
This book review argues that, according to Rappaport, tea is unlike other “morality” products because it:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 10
The passage below is accompanied by a set of questions. Choose the best answer to each question.
The sleights of hand that conflate consumption with virtue are a central theme in A Thirst for Empire, a sweeping and richly detailed history of tea by the historian Erika Rappaport. How did tea evolve from an obscure “China drink” to a universal beverage imbued with civilising properties? The answer, in brief, revolves around this conflation, not only by profit-motivated marketers but by a wide variety of interest groups. While abundant historical records have allowed the study of how tea itself moved from east to west, Rappaport is focused on the movement of the idea of tea to suit particular purposes.
Beginning in the 1700s, the temperance movement advocated for tea as a pleasure that cheered but did not inebriate, and industrialists soon borrowed this moral argument in advancing their case for free trade in tea (and hence more open markets for their textiles). Factory owners joined in, compelled by the cause of a sober workforce, while Christian missionaries discovered that tea “would soothe any colonial encounter”. During the Second World War, tea service was presented as a social and patriotic activity that uplifted soldiers and calmed refugees.
But it was tea’s consumer-directed marketing by importers and retailers – and later by brands – that most closely portends current trade debates. An early version of the “farm to table” movement was sparked by anti-Chinese sentiment and concerns over trade deficits, as well as by the reality and threat of adulterated tea containing dirt and hedge clippings. Lipton was soon advertising “from the Garden to Tea Cup” supply chains originating in British India and supervised by “educated Englishmen”. While tea marketing always presented direct consumer benefits (health, energy, relaxation), tea drinkers were also assured that they were participating in a larger noble project that advanced the causes of family, nation and civilization.
Rappaport’s treatment of her subject is refreshingly apolitical. Indeed, it is a virtue that readers will be unable to guess her political orientation: both the miracle of markets and capitalism’s dark underbelly are evident in tea’s complex story, as are the complicated effects of British colonialism. Commodity histories are now themselves commodities: recent works investigate cotton, salt, cod, sugar, chocolate, paper and milk. And morality marketing is now a commodity as well, applied to food, “fair trade” apparel and eco-tourism. Yet tea is, Rappaport makes clear, a world apart – an astonishing success story in which tea marketers not only succeeded in conveying a sense of moral elevation to the consumer but also arguably did advance the cause of civilisation and community.
I have been offered tea at a British garden party, a Bedouin campfire, a Turkish carpet shop and a Japanese chashitsu, to name a few settings. In each case the offering was more an idea – friendship, community, respect – than a drink, and in each case the idea then created a reality. It is not a stretch to say that tea marketers have advanced the particularly noble cause of human dialogue and friendship.
The author of this book review is LEAST likely to support the view that:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 11
The passage below is accompanied by a set of questions. Choose the best answer to each question.
The sleights of hand that conflate consumption with virtue are a central theme in A Thirst for Empire, a sweeping and richly detailed history of tea by the historian Erika Rappaport. How did tea evolve from an obscure “China drink” to a universal beverage imbued with civilising properties? The answer, in brief, revolves around this conflation, not only by profit-motivated marketers but by a wide variety of interest groups. While abundant historical records have allowed the study of how tea itself moved from east to west, Rappaport is focused on the movement of the idea of tea to suit particular purposes.
Beginning in the 1700s, the temperance movement advocated for tea as a pleasure that cheered but did not inebriate, and industrialists soon borrowed this moral argument in advancing their case for free trade in tea (and hence more open markets for their textiles). Factory owners joined in, compelled by the cause of a sober workforce, while Christian missionaries discovered that tea “would soothe any colonial encounter”. During the Second World War, tea service was presented as a social and patriotic activity that uplifted soldiers and calmed refugees.
But it was tea’s consumer-directed marketing by importers and retailers – and later by brands – that most closely portends current trade debates. An early version of the “farm to table” movement was sparked by anti-Chinese sentiment and concerns over trade deficits, as well as by the reality and threat of adulterated tea containing dirt and hedge clippings. Lipton was soon advertising “from the Garden to Tea Cup” supply chains originating in British India and supervised by “educated Englishmen”. While tea marketing always presented direct consumer benefits (health, energy, relaxation), tea drinkers were also assured that they were participating in a larger noble project that advanced the causes of family, nation and civilization.
Rappaport’s treatment of her subject is refreshingly apolitical. Indeed, it is a virtue that readers will be unable to guess her political orientation: both the miracle of markets and capitalism’s dark underbelly are evident in tea’s complex story, as are the complicated effects of British colonialism. Commodity histories are now themselves commodities: recent works investigate cotton, salt, cod, sugar, chocolate, paper and milk. And morality marketing is now a commodity as well, applied to food, “fair trade” apparel and eco-tourism. Yet tea is, Rappaport makes clear, a world apart – an astonishing success story in which tea marketers not only succeeded in conveying a sense of moral elevation to the consumer but also arguably did advance the cause of civilisation and community.
I have been offered tea at a British garden party, a Bedouin campfire, a Turkish carpet shop and a Japanese chashitsu, to name a few settings. In each case the offering was more an idea – friendship, community, respect – than a drink, and in each case the idea then created a reality. It is not a stretch to say that tea marketers have advanced the particularly noble cause of human dialogue and friendship.
According to this book review, A Thirst for Empire says that, in addition to “profitmotivated marketers”, tea drinking was promoted in Britain by all of the following EXCEPT:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 12
The passage below is accompanied by a set of questions. Choose the best answer to each question.
The sleights of hand that conflate consumption with virtue are a central theme in A Thirst for Empire, a sweeping and richly detailed history of tea by the historian Erika Rappaport. How did tea evolve from an obscure “China drink” to a universal beverage imbued with civilising properties? The answer, in brief, revolves around this conflation, not only by profit-motivated marketers but by a wide variety of interest groups. While abundant historical records have allowed the study of how tea itself moved from east to west, Rappaport is focused on the movement of the idea of tea to suit particular purposes.
Beginning in the 1700s, the temperance movement advocated for tea as a pleasure that cheered but did not inebriate, and industrialists soon borrowed this moral argument in advancing their case for free trade in tea (and hence more open markets for their textiles). Factory owners joined in, compelled by the cause of a sober workforce, while Christian missionaries discovered that tea “would soothe any colonial encounter”. During the Second World War, tea service was presented as a social and patriotic activity that uplifted soldiers and calmed refugees.
But it was tea’s consumer-directed marketing by importers and retailers – and later by brands – that most closely portends current trade debates. An early version of the “farm to table” movement was sparked by anti-Chinese sentiment and concerns over trade deficits, as well as by the reality and threat of adulterated tea containing dirt and hedge clippings. Lipton was soon advertising “from the Garden to Tea Cup” supply chains originating in British India and supervised by “educated Englishmen”. While tea marketing always presented direct consumer benefits (health, energy, relaxation), tea drinkers were also assured that they were participating in a larger noble project that advanced the causes of family, nation and civilization.
Rappaport’s treatment of her subject is refreshingly apolitical. Indeed, it is a virtue that readers will be unable to guess her political orientation: both the miracle of markets and capitalism’s dark underbelly are evident in tea’s complex story, as are the complicated effects of British colonialism. Commodity histories are now themselves commodities: recent works investigate cotton, salt, cod, sugar, chocolate, paper and milk. And morality marketing is now a commodity as well, applied to food, “fair trade” apparel and eco-tourism. Yet tea is, Rappaport makes clear, a world apart – an astonishing success story in which tea marketers not only succeeded in conveying a sense of moral elevation to the consumer but also arguably did advance the cause of civilisation and community.
I have been offered tea at a British garden party, a Bedouin campfire, a Turkish carpet shop and a Japanese chashitsu, to name a few settings. In each case the offering was more an idea – friendship, community, respect – than a drink, and in each case the idea then created a reality. It is not a stretch to say that tea marketers have advanced the particularly noble cause of human dialogue and friendship.
Today, “conflating consumption with virtue” can be seen in the marketing of:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 13
Read the following passage and answer the questions that follow:
Around the world, capital cities are disgorging bureaucrats. In the post-colonial fervour of the 20th century, coastal capitals picked by trade-focused empires were spurned for “regionally neutral” new ones . . . . But decamping wholesale is costly and unpopular; governments these days prefer piecemeal dispersal. The trend reflects how the world has changed. In past eras, when information travelled at a snail’s pace, civil servants had to cluster together. But now desk-workers can ping emails and video-chat around the world. Travel for face-to-face meetings may be unavoidable, but transport links, too, have improved. . . . Proponents of moving civil servants around promise countless benefits. It disperses the risk that a terrorist attack or natural disaster will cripple an entire government. Wonks in the sticks will be inspired by new ideas that walled-off capitals cannot conjure up. Autonomous regulators perform best far from the pressure and lobbying of the big city. Some even hail a cure for ascendant cynicism and populism. The unloved bureaucrats of faraway capitals will become as popular as firefighters once they mix with regular folk. Beyond these sunny visions, dispersing central-government functions usually has three specific aims: to improve the lives of both civil servants and those living in clogged capitals; to save money; and to redress regional imbalances. The trouble is that these goals are not always realised. The first aim—improving living conditions—has a long pedigree. After the second world war Britain moved thousands of civil servants to “agreeable English country towns” as London was rebuilt. But swapping the capital for somewhere smaller is not always agreeable. Attrition rates can exceed 80%. . . . The second reason to pack bureaucrats off is to save money. Office space costs far more in capitals. . . . Agencies that are moved elsewhere can often recruit better workers on lower salaries than in capitals, where well-paying multinationals mop up talent. The third reason to shift is to rebalance regional inequality. . . . Norway treats federal jobs as a resource every region deserves to enjoy, like profits from oil. Where government jobs go, private ones follow. . . . Sometimes the aim is to fulfil the potential of a country’s second-tier cities. Unlike poor, remote places, bigger cities can make the most of relocated government agencies, linking them to local universities and businesses and supplying a better-educated workforce. The decision in 1946 to set up America’s Centres for Disease Control in Atlanta rather than Washington, D.C., has transformed the city into a hub for health sector research and business. The dilemma is obvious. Pick small, poor towns, and areas of high unemployment get new jobs, but it is hard to attract the most qualified workers; opt for larger cities with infrastructure and better-qualified residents, and the country’s most deprived areas see little benefit. . . . Others contend that decentralisation begets corruption by making government agencies less accountable. . . . A study in America found that state-government corruption is worse when the state capital is isolated—journalists, who tend to live in the bigger cities, become less watchful of those in power.
According to the passage, colonial powers located their capitals:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 14
Read the following passage and answer the questions that follow:
Around the world, capital cities are disgorging bureaucrats. In the post-colonial fervour of the 20th century, coastal capitals picked by trade-focused empires were spurned for “regionally neutral” new ones . . . . But decamping wholesale is costly and unpopular; governments these days prefer piecemeal dispersal. The trend reflects how the world has changed. In past eras, when information travelled at a snail’s pace, civil servants had to cluster together. But now desk-workers can ping emails and video-chat around the world. Travel for face-to-face meetings may be unavoidable, but transport links, too, have improved. . . . Proponents of moving civil servants around promise countless benefits. It disperses the risk that a terrorist attack or natural disaster will cripple an entire government. Wonks in the sticks will be inspired by new ideas that walled-off capitals cannot conjure up. Autonomous regulators perform best far from the pressure and lobbying of the big city. Some even hail a cure for ascendant cynicism and populism. The unloved bureaucrats of faraway capitals will become as popular as firefighters once they mix with regular folk. Beyond these sunny visions, dispersing central-government functions usually has three specific aims: to improve the lives of both civil servants and those living in clogged capitals; to save money; and to redress regional imbalances. The trouble is that these goals are not always realised. The first aim—improving living conditions—has a long pedigree. After the second world war Britain moved thousands of civil servants to “agreeable English country towns” as London was rebuilt. But swapping the capital for somewhere smaller is not always agreeable. Attrition rates can exceed 80%. . . . The second reason to pack bureaucrats off is to save money. Office space costs far more in capitals. . . . Agencies that are moved elsewhere can often recruit better workers on lower salaries than in capitals, where well-paying multinationals mop up talent. The third reason to shift is to rebalance regional inequality. . . . Norway treats federal jobs as a resource every region deserves to enjoy, like profits from oil. Where government jobs go, private ones follow. . . . Sometimes the aim is to fulfil the potential of a country’s second-tier cities. Unlike poor, remote places, bigger cities can make the most of relocated government agencies, linking them to local universities and businesses and supplying a better-educated workforce. The decision in 1946 to set up America’s Centres for Disease Control in Atlanta rather than Washington, D.C., has transformed the city into a hub for health sector research and business. The dilemma is obvious. Pick small, poor towns, and areas of high unemployment get new jobs, but it is hard to attract the most qualified workers; opt for larger cities with infrastructure and better-qualified residents, and the country’s most deprived areas see little benefit. . . . Others contend that decentralisation begets corruption by making government agencies less accountable. . . . A study in America found that state-government corruption is worse when the state capital is isolated—journalists, who tend to live in the bigger cities, become less watchful of those in power.
The “dilemma” mentioned in the passage refers to:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 15
Read the following passage and answer the questions that follow:
Around the world, capital cities are disgorging bureaucrats. In the post-colonial fervour of the 20th century, coastal capitals picked by trade-focused empires were spurned for “regionally neutral” new ones . . . . But decamping wholesale is costly and unpopular; governments these days prefer piecemeal dispersal. The trend reflects how the world has changed. In past eras, when information travelled at a snail’s pace, civil servants had to cluster together. But now desk-workers can ping emails and video-chat around the world. Travel for face-to-face meetings may be unavoidable, but transport links, too, have improved. . . . Proponents of moving civil servants around promise countless benefits. It disperses the risk that a terrorist attack or natural disaster will cripple an entire government. Wonks in the sticks will be inspired by new ideas that walled-off capitals cannot conjure up. Autonomous regulators perform best far from the pressure and lobbying of the big city. Some even hail a cure for ascendant cynicism and populism. The unloved bureaucrats of faraway capitals will become as popular as firefighters once they mix with regular folk. Beyond these sunny visions, dispersing central-government functions usually has three specific aims: to improve the lives of both civil servants and those living in clogged capitals; to save money; and to redress regional imbalances. The trouble is that these goals are not always realised. The first aim—improving living conditions—has a long pedigree. After the second world war Britain moved thousands of civil servants to “agreeable English country towns” as London was rebuilt. But swapping the capital for somewhere smaller is not always agreeable. Attrition rates can exceed 80%. . . . The second reason to pack bureaucrats off is to save money. Office space costs far more in capitals. . . . Agencies that are moved elsewhere can often recruit better workers on lower salaries than in capitals, where well-paying multinationals mop up talent. The third reason to shift is to rebalance regional inequality. . . . Norway treats federal jobs as a resource every region deserves to enjoy, like profits from oil. Where government jobs go, private ones follow. . . . Sometimes the aim is to fulfil the potential of a country’s second-tier cities. Unlike poor, remote places, bigger cities can make the most of relocated government agencies, linking them to local universities and businesses and supplying a better-educated workforce. The decision in 1946 to set up America’s Centres for Disease Control in Atlanta rather than Washington, D.C., has transformed the city into a hub for health sector research and business. The dilemma is obvious. Pick small, poor towns, and areas of high unemployment get new jobs, but it is hard to attract the most qualified workers; opt for larger cities with infrastructure and better-qualified residents, and the country’s most deprived areas see little benefit. . . . Others contend that decentralisation begets corruption by making government agencies less accountable. . . . A study in America found that state-government corruption is worse when the state capital is isolated—journalists, who tend to live in the bigger cities, become less watchful of those in power.
People who support decentralising central government functions are LEAST likely to cite which of the following reasons for their view?
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 16
Read the following passage and answer the questions that follow:
Around the world, capital cities are disgorging bureaucrats. In the post-colonial fervour of the 20th century, coastal capitals picked by trade-focused empires were spurned for “regionally neutral” new ones . . . . But decamping wholesale is costly and unpopular; governments these days prefer piecemeal dispersal. The trend reflects how the world has changed. In past eras, when information travelled at a snail’s pace, civil servants had to cluster together. But now desk-workers can ping emails and video-chat around the world. Travel for face-to-face meetings may be unavoidable, but transport links, too, have improved. . . . Proponents of moving civil servants around promise countless benefits. It disperses the risk that a terrorist attack or natural disaster will cripple an entire government. Wonks in the sticks will be inspired by new ideas that walled-off capitals cannot conjure up. Autonomous regulators perform best far from the pressure and lobbying of the big city. Some even hail a cure for ascendant cynicism and populism. The unloved bureaucrats of faraway capitals will become as popular as firefighters once they mix with regular folk. Beyond these sunny visions, dispersing central-government functions usually has three specific aims: to improve the lives of both civil servants and those living in clogged capitals; to save money; and to redress regional imbalances. The trouble is that these goals are not always realised. The first aim—improving living conditions—has a long pedigree. After the second world war Britain moved thousands of civil servants to “agreeable English country towns” as London was rebuilt. But swapping the capital for somewhere smaller is not always agreeable. Attrition rates can exceed 80%. . . . The second reason to pack bureaucrats off is to save money. Office space costs far more in capitals. . . . Agencies that are moved elsewhere can often recruit better workers on lower salaries than in capitals, where well-paying multinationals mop up talent. The third reason to shift is to rebalance regional inequality. . . . Norway treats federal jobs as a resource every region deserves to enjoy, like profits from oil. Where government jobs go, private ones follow. . . . Sometimes the aim is to fulfil the potential of a country’s second-tier cities. Unlike poor, remote places, bigger cities can make the most of relocated government agencies, linking them to local universities and businesses and supplying a better-educated workforce. The decision in 1946 to set up America’s Centres for Disease Control in Atlanta rather than Washington, D.C., has transformed the city into a hub for health sector research and business. The dilemma is obvious. Pick small, poor towns, and areas of high unemployment get new jobs, but it is hard to attract the most qualified workers; opt for larger cities with infrastructure and better-qualified residents, and the country’s most deprived areas see little benefit. . . . Others contend that decentralisation begets corruption by making government agencies less accountable. . . . A study in America found that state-government corruption is worse when the state capital is isolated—journalists, who tend to live in the bigger cities, become less watchful of those in power.
According to the author, relocating government agencies has not always been a success for all of the following reasons EXCEPT:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 17
Read the following passage and answer the questions that follow:
Contemporary internet shopping conjures a perfect storm of choice anxiety. Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. . . . Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet. Indeed, choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it. . . .
For a relatively new class of consumer-products start-ups, there’s another method entirely. Instead of making sense of a sea of existing stuff, these companies claim to disrupt stuff as Americans know it. Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices. They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things, and an ability to opt out of the stuff rat race. . . .
One-thousand-dollar mattresses and $300 suitcases might solve choice anxiety for a certain tier of consumer, but the companies that sell them, along with those that attempt to massage the larger stuff economy into something navigable, are still just working within a consumer market that’s broken in systemic ways. The presence of so much stuff in America might be more valuable if it were more evenly distributed, but stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.
For start-ups that promise accessible simplicity, their very structure still might eventually push them toward overwhelming variety. Most of these companies are based on hundreds of millions of dollars of venture capital, the investors of which tend to expect a steep growth rate that can’t be achieved by selling one great mattress or one great sneaker. Casper has expanded into bedroom furniture and bed linens. Glossier, after years of marketing itself as no-makeup makeup that requires little skill to apply, recently launched a full line of glittering color cosmetics. There may be no way to opt out of stuff by buying into the right thing.
Which one of the following best sums up the overall purpose of the examples of Casper and Glossier in the passage?
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 18
Read the following passage and answer the questions that follow:
Contemporary internet shopping conjures a perfect storm of choice anxiety. Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. . . . Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet. Indeed, choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it. . . .
For a relatively new class of consumer-products start-ups, there’s another method entirely. Instead of making sense of a sea of existing stuff, these companies claim to disrupt stuff as Americans know it. Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices. They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things, and an ability to opt out of the stuff rat race. . . .
One-thousand-dollar mattresses and $300 suitcases might solve choice anxiety for a certain tier of consumer, but the companies that sell them, along with those that attempt to massage the larger stuff economy into something navigable, are still just working within a consumer market that’s broken in systemic ways. The presence of so much stuff in America might be more valuable if it were more evenly distributed, but stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.
For start-ups that promise accessible simplicity, their very structure still might eventually push them toward overwhelming variety. Most of these companies are based on hundreds of millions of dollars of venture capital, the investors of which tend to expect a steep growth rate that can’t be achieved by selling one great mattress or one great sneaker. Casper has expanded into bedroom furniture and bed linens. Glossier, after years of marketing itself as no-makeup makeup that requires little skill to apply, recently launched a full line of glittering color cosmetics. There may be no way to opt out of stuff by buying into the right thing.
Which of the following hypothetical statements would add the least depth to the author’s prediction of the fate of start-ups offering few product options?
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 19
Read the following passage and answer the questions that follow:
Contemporary internet shopping conjures a perfect storm of choice anxiety. Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. . . . Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet. Indeed, choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it. . . .
For a relatively new class of consumer-products start-ups, there’s another method entirely. Instead of making sense of a sea of existing stuff, these companies claim to disrupt stuff as Americans know it. Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices. They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things, and an ability to opt out of the stuff rat race. . . .
One-thousand-dollar mattresses and $300 suitcases might solve choice anxiety for a certain tier of consumer, but the companies that sell them, along with those that attempt to massage the larger stuff economy into something navigable, are still just working within a consumer market that’s broken in systemic ways. The presence of so much stuff in America might be more valuable if it were more evenly distributed, but stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.
For start-ups that promise accessible simplicity, their very structure still might eventually push them toward overwhelming variety. Most of these companies are based on hundreds of millions of dollars of venture capital, the investors of which tend to expect a steep growth rate that can’t be achieved by selling one great mattress or one great sneaker. Casper has expanded into bedroom furniture and bed linens. Glossier, after years of marketing itself as no-makeup makeup that requires little skill to apply, recently launched a full line of glittering color cosmetics. There may be no way to opt out of stuff by buying into the right thing.
Based on the passage, all of the following can be inferred about consumer behaviour EXCEPT that:
CAT VARC BUSINESS AND ECONOMICS QUESTIONS - Question 20
Read the following passage and answer the questions that follow:
Contemporary internet shopping conjures a perfect storm of choice anxiety. Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. . . . Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet. Indeed, choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it. . . .
For a relatively new class of consumer-products start-ups, there’s another method entirely. Instead of making sense of a sea of existing stuff, these companies claim to disrupt stuff as Americans know it. Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices. They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things, and an ability to opt out of the stuff rat race. . . .
One-thousand-dollar mattresses and $300 suitcases might solve choice anxiety for a certain tier of consumer, but the companies that sell them, along with those that attempt to massage the larger stuff economy into something navigable, are still just working within a consumer market that’s broken in systemic ways. The presence of so much stuff in America might be more valuable if it were more evenly distributed, but stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.
For start-ups that promise accessible simplicity, their very structure still might eventually push them toward overwhelming variety. Most of these companies are based on hundreds of millions of dollars of venture capital, the investors of which tend to expect a steep growth rate that can’t be achieved by selling one great mattress or one great sneaker. Casper has expanded into bedroom furniture and bed linens. Glossier, after years of marketing itself as no-makeup makeup that requires little skill to apply, recently launched a full line of glittering color cosmetics. There may be no way to opt out of stuff by buying into the right thing.
All of the following, IF TRUE, would weaken the author’s claims EXCEPT:
