List of top Verbal Reasoning Questions asked in NPAT

Read the passage and answer the questions that follow.
Under capitalism, the argument goes, it’s every man for himself. Through the relentless pursuit of self-interest, everyone benefits, as if an invisible hand were guiding each of us toward the common good. Everyone should accordingly try to get as much as they can, not only for their goods but also for their labour. What ever the market price is, in turn, what the buyer should pay. Just like the idea that there should be a minimum wage, the idea that there should be a maximum wage seems to undermine the very freedom that the free market is supposed to guarantee.
 This view, however, has some dramatic consequences. One is the explosion in economic inequality that almost all liberal capitalist democracies have experienced over the past 30-40 years. The difference between the top and the bottom of the income distribution now lies about where it did in the Gilded Age and the roaring 1920s, up until the Great Depression. Unlike these earlier periods, however, this rise in economic inequality has not been driven by returns on capital assets. This time, one of the most important contributors to the rise has been the payment of extraordinarily high levels of compensation to corporate executives... More troubling still, while the compensation for corporate executives has been almost continually rising during this period, real (inflation-adjusted) wages for almost everybody else have been stagnating. 
Many people find this upsetting but, even so, they tend to treat it as something capitalism requires us to tolerate. Others think it is something that capitalism requires us to applaud. But nothing in capitalism actually says that such sky-high levels of compensation are permissible. What capitalism says instead is that people need incentives to be maximally productive. But will someone who makes 100millionayearreallyworkharderthansomeonewhomakes10 million? Compensation, like everything else, has what economists call ’diminishing marginal utility’. More of it has less and less of an incentivising effect, until eventually it has no incentivising effect at all-people are already working as hard as they can. At which point capitalism suggests that we should not pay someone even more money, for we are going to get nothing in return. 
But wait- aren’t CEOs just getting paid the market rate for their labour? Their compensation is calculated according to a formula set when they were hired and, as long as this formula represents the going wage, then this is what they should receive. The market rate for CEO labour, however, is not set in a competitive manner. The formula is set by a special group of the company’s directors, called ’the compensation committee’.... Next time someone hires a CEO and another compensation committee conducts a survey, the average will be higher. The market is not bidding up the price; the price is going up simply because everyone always wants to beat the current average. We have what economists call a market failure. Setting a maximum wage would therefore not interfere with market freedom because, in this instance, the market is not working
Read the passage and answer the questions that follow.
China initiated its economic miracle by opening to the outside world, but now it is nurturing domestic tech giants by barring outside competition. Foreign visitors cannot open Google or Facebook, a weirdly isolating experience... But unlike the Soviet Union, which failed in a similar strategy, China is effectively creating a new consumer culture behind protectionist walls as a tool of political control and an engine of economic growth....Anchored by internet giants such as Alibaba and Tencent, the tech sector (was) not only counterbalancing the decline in older industries such as steel and aluminium but was also largely debt free. So, the bigger the digital economy, the greater is China’s capacity to manage mounting debts in the old economy and keep growth alive... 
By 2017, tech already accounted for as large a share of output in China as in Germany... Yet on balance, tech is probably creating more professions than it destroys. A recent International Monetary Fund (IMF) paper estimates that after subtracting the jobs it eliminates, digitalisation accounts for up to half of all job growth. Alibaba platforms alone host millions of small companies, which over the past decade have added 30 million jobs-more than China has lost in heavy industry. China’s tech revolution was made possible by two of the forces that were expected to slow the economy. The population may be aging, but it still provides a vast market in which tech start-ups can blossom. And though growth normally slows when countries attain a middle-class income, in China the new middle class pro vides the main customers for new mobile internet services. No other country has this combination. India has the population, not the income. Brazil has the income, not the population. And these democratic societies are also far more suspicious of government surveillance than China is. Witness the widespread controversy over the rollout of biometric IDs in India. 
In China, at least outside Xinjiang, the relatively mild concern about personal data has helped fuel the boom in digital payments and e-commerce. China is the world’s largest e-commerce market by far, and fleets of motorbikes painted in the colours of online delivery companies park five to six rows deep outside malls and office towers. To offset the shrinking of its work force, China needed to increase the productivity of the workers who remain. And as the tech boom took off around 2015, productivity growth began to recover after flat lining for nearly a decade. The IMF paper argues that the economy is bound to slow in coming years, but will slow much more sharply if digitalisation stalls than if it continues at the current rapid pace. 
No economy can rise in an unbroken line forever, and mounting debts and a declining labour force still weigh on China. By making online loans so readily available to Chinese households, tech may compound the risk of financial crisis.