Soros, we must note, has never been a champion of free market capitalism. He has followed for nearly all his public life the political ideas of the late Sir Karl Popper who laid out a rather jumbled case for what he dubbed “the open society” in his The Open Society and Its Enemies (1953). Such a society is what we ordinarily call the pragmatic system in which politicians get involved in people’s lives but without any heavy theoretical machinery to guide them, simply as the ad hoc parental authorities who are believed to be needed to keep us all on the straight and narrow. Popper was at one time a Marxist socialist but became disillusioned with that idea because he came to believe that systematic ideas do not work in any area of human concern.
The Popperian open society Soros promotes is characterized by a very general policy of having no firm principles, not even those needed for it to have some constancy and integrity. This makes the open society a rather wobbly idea, since even what Popper himself regarded as central to all human thinking, critical rationalism, may be undermined by the openness of the open society since its main target is negative — avoid dogmatic thinking, and avoid anything that even comes close to a set of unbreachable principles. No, the open society is open to anything at all, at least for experimental purposes. No holds are barred, which, if you think about it, undermines even that very idea and becomes unworkable.
Accordingly, in a society Soros regards suited to human community living, the state can manipulate many aspects of human life, including, of course, the economic behaviour of individuals and firms. It can control the money supply, impose wage and price controls, dabble in demand or supply-side economics, and do nearly everything a central planning board might — provided it does not settle into any one policy firmly, unbendingly. That is the gist of Soros’s Popperian politics.
Soros distrusts capitalism in particular, because of the alleged inadequacy of neoclassical economics, the technical economic underpinnings of capitalist thinking offered up in many university economics departments. He, like many others outside and even inside the economics discipline, finds the arid reductionism of this social science false to the facts, and rightly so. But the defence of capitalist free markets does not rest on this position.
Neo-classical thinking depends in large part on the 18th- and 19th-century belief that human society operates according to laws, not unlike those that govern the physical universe. Most of social science embraced that faith, so economics isn’t unusual in its loyalty to classical mechanics. Nor do all economists take the deterministic lawfulness of economic science literally — some understand that the laws began to operate only once men embark upon economic pursuits. Outside their commercial ventures, people can follow different principles and priorities, even if it is undeniable that most of their endeavours have economic features. Yet, it would be foolish to construe religion or romance or even scientific inquiry as solely explicable by reference to the laws of economics.
In his criticism of neo-classical economic science, then, George Soros has a point: the discipline is too dependent on Newtonian physics as the model of science. As a result, the predictions of economists who look at markets as if they were machines need to be taken with a grain of salt. Some — for example the school of Austrian economists — have made exactly that point against the neo-classical.
Soros draws a mistaken inference: if one defends the market as flawed, the market lacks defense. This is wrong. If it is true that from A we can infer B, it does not prove that B can only be inferred from A; A → C, too, might be a reason for B.
As per the paragraph, author believes that
Show Hint
- Free market capitalism can be explained using neo-classical economics.
- Neo-classical economics does not address the idea of free-market system.
- Free market capitalism and open society are not different from each other.
- Free market capitalism and laissez-faire are not different from each other.
- Technical underpinning of neo-classical economics can address the idea of laissez-faire.
The Correct Option is B
Solution and Explanation
The passage highlights Soros’ criticism of neo-classical economics. According to him, neo-classical economics is overly dependent on Newtonian physics and deterministic laws, which fail to capture the complexities of human social and economic behavior.
Step 2: Linking to free-market capitalism
The author points out that Soros’ distrust in free-market capitalism arises because its technical foundation (neo-classical economics) is inadequate. However, the passage clarifies that defending free markets does not necessarily rely on neo-classical economics.
Step 3: Evaluating each option
- (A) Wrong — The author never states that neo-classical economics can explain free markets; rather, he highlights its shortcomings.
- (B) Correct — The author emphasizes that neo-classical economics is too mechanistic and therefore does not fully address the idea of free markets.
- (C) Wrong — The passage never equates free market capitalism with an open society. In fact, it distinguishes them.
- (D) Wrong — There is no mention that laissez-faire and free market capitalism are the same.
- (E) Wrong — The author rejects the claim that neo-classical economics provides a sufficient technical underpinning. Step 4: Conclusion
Thus, the best interpretation of the author’s belief is that neo-classical economics is insufficient in addressing the concept of free-market systems. \[ \boxed{\text{Correct Answer: B}} \]
As per the paragraph, which of the following statements is true?
Show Hint
- Economic benefits of open society and laissez-faire are same.
- Soros' open society means no interference from the government.
- Free market capitalism means no interference from the government.
- Laws of economics are not capable of explaining the human nature completely.
- Laws of economics capture the human nature completely as most of the human endeavors are economic in nature.
The Correct Option is D
Solution and Explanation
The passage highlights Soros’ critique of neo-classical economics. It states that neo-classical economics reduces human society to deterministic laws similar to physics, which is a flawed assumption. Human life contains many areas (religion, romance, scientific inquiry, etc.) that cannot be explained purely in economic terms.
Step 2: Elimination of incorrect options
- (A) Incorrect — The passage never equates the benefits of open society with laissez-faire.
- (B) Incorrect — Soros’ “open society” allows government interference (manipulating economic and social life), not absence of it.
- (C) Incorrect — Free market capitalism is distinguished from Soros’ idea; it means minimal interference, but Soros distrusts it.
- (E) Incorrect — The author explicitly rejects the idea that economics captures all of human endeavors.
Step 3: Identifying the correct option
(D) is correct, because the author says economic laws cannot fully explain human nature — religion, love, or science go beyond economics. \[ \boxed{\text{Correct Answer: D}} \]
According to the author,
Show Hint
- George Soros believes in regulated economies.
- George Soros does not believe in government intervention in state policies.
- George Soros believes in state intervention provided it does not remain static.
- George Soros believes that laissez-faire economies perform better than free-market economies.
- George Soros believes that free-market economies perform better than controlled economies.
The Correct Option is C
Solution and Explanation
The passage discusses George Soros’ perspective on open societies, free markets, and the role of government. He does not equate an open society with laissez-faire capitalism. Instead, he emphasizes that state intervention may be required but should remain flexible and adaptive.
Step 2: Analyzing the options
A) Incorrect – While Soros does favor regulation to prevent market excesses, saying he "believes in regulated economies" is too broad and misleading.
B) Incorrect – He does not reject government intervention outright; he rejects rigid or absolute intervention.
C) Correct – Soros supports intervention as long as it remains dynamic and does not become static or dogmatic.
D) Incorrect – Soros critiques laissez-faire economics rather than endorsing it.
E) Incorrect – This misrepresents his viewpoint. He does not make such a simple comparison.
Step 3: Conclusion
Therefore, the best answer aligned with the passage is option (C). \[ \boxed{C} \]
According to the author which of the following statement could be true about critical rationalism?
Show Hint
- Ideas of critical rationalism underpin the foundation of neo-classical economics.
- Ideas of critical rationalism underpin the foundation of laissez-faire.
- Ideas of critical rationalism underpin the foundation of open society.
- Ideas of critical rationalism underpin the foundation of Newtonian physics.
- None of the above.
The Correct Option is
Solution and Explanation
The passage mentions critical rationalism as what “Soros himself regarded as central to all human thinking.” It is highlighted as an attribute of thought, not as a foundation of specific systems like economics, laissez-faire, physics, or open society.
Step 2: Compare with the options.
(A) Neo-classical economics — No such linkage is made in the passage.
(B) Laissez-faire — No evidence in the passage.
(C) Open society — The passage explicitly states open society may undermine critical rationalism rather than be founded on it.
(D) Newtonian physics — This is connected to neo-classical economics, not to critical rationalism.
Step 3: Conclusion.
Since none of the options (A–D) are supported, the correct choice is (E). \[ \boxed{\text{None of the above}} \]
The word deterministic (used in fourth line of fifth paragraph), in the above passage refers to:
Show Hint
- An effect can only be caused by a single event.
- An effect may be produced by many causes.
- An effect cannot be produced by a cause.
- Cause(s) of an effect can always be known.
- Economics does not follow cause and effect relationship.
The Correct Option is D
Solution and Explanation
In philosophy and science, determinism means every effect is governed by laws of cause and effect — i.e., nothing happens randomly, and causes can always be traced.
Step 2: Context in the passage.
The passage critiques neo-classical economics for being overly dependent on Newtonian physics, which is based on deterministic laws. In such a framework, the assumption is that economic effects always have knowable causes.
Step 3: Eliminate distractors.
(A) Single event — determinism does not imply only one cause.
(B) Many causes — possible, but determinism focuses on certainty, not multiplicity.
(C) No cause — opposite of determinism.
(E) No cause-effect relation — directly contradicts determinism.
Step 4: Conclusion.
The best interpretation is (D): causes of an effect can always be known. \[ \boxed{\text{Cause(s) of an effect can always be known}} \]
Top Questions on Reading Comprehension
No one argues that the rich should be rich because they were born to wealthy parents. Critics of inequality may complain that those who would abolish inheritance taxes, say, are implicitly endorsing hereditary privilege. But no one defends hereditary privilege outright or disputes the principle that careers should be open to talents.
Most of our debates about access to jobs, education, and public o ce proceed from the premise of equal opportunity. Our disagreements are less about the principle itself than about what it requires. For example, critics of a rmative action in hiring and college admissions argue that such policies are inconsistent with equality of opportunity, because they judge applicants on factors other than merit. Defenders of a rmative action reply that such policies are necessary to make equality of opportunity a reality for members of groups that have suffered discrimination or disadvantage.
At the level of principle at least, and political rhetoric, meritocracy has won the day. In democracies throughout the world, politicians of the center-left and center-right claim that their policies are the ones that will enable all citizens, whatever their race or ethnicity, gender or class, to compete on equal terms and to rise as far as their efforts and talents will take them. When people complain about meritocracy, the complaint is usually not about the ideal but about our failure to live up to it: The wealthy and powerful have rigged the system to perpetuate their privilege; the professional classes have gured out how to pass their advantages on to their children, converting the meritocracy into a hereditary aristocracy; colleges that claim to select students on merit give an edge to the sons and daughters of the wealthy and the well-connected. According to this complaint, meritocracy is a myth, a distant promise yet to be redeemed.- XAT - 2025
- Verbal and Logical Ability
- Reading Comprehension
Look how you turned on
the ceiling fan—it’s too high,
see how it shakes and trembles.
You walk into this room
with your hot ideas
and the ceiling fan has to work harder
to cool down the room
for us. You walk into this room
with your crazy eyes
and the ceiling fan
wants to y loose. It dreams
of becoming a spider lily.- XAT - 2025
- Verbal and Logical Ability
- Reading Comprehension
Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and re section exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied nance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative. They studied proactivity, discipline, and determination, and practiced putting those qualities into action. Character skills training had a dramatic impact. After founders had spent merely ve days working on these skills, their rms’ pro ts grew by an average of 30 percent over the next two years. That was nearly triple the bene t of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered nancial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them … Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same. Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day. Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.
- XAT - 2025
- Verbal and Logical Ability
- Reading Comprehension
This uidity and situational dependence is uniquely human. In other species, in-group/outgroup distinctions re ect degrees of biological relatedness, or what evolutionary biologists call “kin selection.” Rodents distinguish between a sibling, a cousin, and a stranger by smell—xed, genetically determined pheromonal signatures—and adapt their cooperation accordingly. Those murderous groups of chimps are largely made up of brothers or cousins who grew up together and predominantly harm outsiders. Humans are plenty capable of kin-selective violence themselves, yet human group mentality is often utterly independent of such instinctual familial bonds. Most modern human societies rely instead on cultural kin selection, a process allowing people to feel closely related to what are, in a biological sense, total strangers. Often, this requires a highly active process of inculcation, with its attendant rituals and vocabularies. Consider military drills producing “bands of brothers,” unrelated college freshmen becoming sorority “sisters,” or the bygone value of welcoming immigrants into “the American family.” This malleable, rather than genetically xed, path of identity formation also drives people to adopt arbitrary markers that enable them to spot their cultural kin in an ocean of strangers—hence the importance various communities attach to ags, dress, or facial hair. The hipster beard, the turban, and the “Make America Great Again” hat all fulfill this role by sending strong signals of tribal belonging. Moreover, these cultural communities are arbitrary when compared to the relatively axed logic of biological kin selection. Few things show this arbitrariness better than the experience of immigrant families, where the randomness of a visa lottery can radically reshu e a child’s education, career opportunities, and cultural predilections. Had my grandparents and father missed the train out of Moscow that they instead barely made, maybe I’d be a chain smoking Russian academic rather than a Birkenstock-wearing American one, moved to tears by the heroism during the Battle of Stalingrad rather than that at Pearl Harbor. Scaled up from the level of individual family histories, our big-picture group identities—the national identities and cultural principles that structure our lives— are just as arbitrary and subject to the vagaries of history.
- XAT - 2025
- Verbal and Logical Ability
- Reading Comprehension
- Work, for many on the career track, is greedy. The individual who puts in overtime, weekend time, or evening time will earn a lot more—so much more that, even on an hourly basis, the person is earning more.…The greediness of work means that couples with children or other care responsibilities would gain by doing a bit of specialization. This specialization doesn’t mean catapulting back to the world of Leave It to Beaver. Women will still pursue demanding careers. But one member of the couple will be on call at home, ready to leave the o ce or workplace at a moment’s notice. That person will have a position with considerable exibility and will ordinarily not be expected to answer an e-mail or a call at ten p.m. That parent will not have to cancel an appearance at soccer practice for an M \& A. The other parent, however, will be on call at work and do just the opposite. The potential impact on promotion, advancement, and earnings is obvious. The work of professionals and managers has always been greedy. Lawyers have always burned the midnight oil. Academics have always been judged for their cerebral output and are expected not to turn their brains off in the evenings. Most doctors and veterinarians were once on call 24/7. The value of greedy jobs has greatly increased with rising income inequality, which has soared since the early 1980s. Earnings at the very upper end of the income distribution have ballooned. The worker who jumps the highest gets an ever-bigger reward. The jobs with the greatest demands for long hours and the least exibility have paid disproportionately more, while earnings in other employments have stagnated. Thus, positions that have been more di cult for women to enter in the rst place, such as those in nance, are precisely the ones that have seen the greatest increases in income in the last several decades. The private equity associate who sees the deal through from beginning to end, who did the di cult modeling, and who went to every meeting and late-night dinner, will have maximum chance for a big bonus and the sought-after promotion. Rising inequality in earnings may be one important reason why the gender pay gap among college graduates has remained at in the last several decades, despite improvements in women’s credentials and positions. It may be the reason why the gender earnings gap for college graduates became larger than that between men and women in the entire population in the late 1980s and early 1990s. Women have been swimming upstream, holding their own but going against a strong current of endemic income inequality. Greedy work also means that couple equity has been, and will continue to be, jettisoned for increased family income. And when couple equity is thrown out the window, gender equality generally goes with it, except among same-sex unions. Gender norms that we have inherited get reinforced in a host of ways to allot more of the childcare responsibility to mothers, and more of the family care to grown daughters. 68. Which of the following statements CANNOT be inferred from the passage?
- XAT - 2025
- Verbal and Logical Ability
- Reading Comprehension
Questions Asked in XAT exam
Match the following renowned Indian personalities with their respective awards.
Names Award 1. Shri Ratan Naval Tata A. Dadasaheb Phalke Award 2. Manmohan Singh B. Grammy Awards 3. Zakir Hussain C. Carnegie Medal of Philanthropy 4. Shyam Benegal D. World Statesman Award - XAT - 2025
- Famous personalities and their contributions
Match the following authors with their respective works.
Authors Books 1. Andy Weir A. Dune 2. Cixin Liu B. The Time Machine 3. Stephen Hawking C. The Brief History of Time 4. HG Wells D. The Martian 5. Frank Herbert E. The Three Body Problem - XAT - 2025
- Books and Authors
Match the following airlines with the countries where they are headquartered.
Airlines Countries 1. AirAsia A. Singapore 2. AZAL B. South Korea 3. Jeju Air C. Azerbaijan 4. Indigo D. India 5. Tigerair E. Malaysia - XAT - 2025
- Business and Economy
The diagram below represents a road network connecting five towns, namely Meeren, Lannisport, Winterfell, Oldtown, and Gulltown. The maximum speed limits along any stretch of road are as shown in the diagram. The straight road that connects Meeren to Gulltown passes through Oldtown. Another straight road, running west to east, connecting Meeren to Winterfell, passes through Lannisport. Further, two straight roads, one from Lannisport to Oldtown and another from Winterfell to Gulltown, are perpendicular to the road joining Meeren to Winterfell, and run from south to north.
Consider a car always travelling at the maximum permissible speed, and always taking the shortest route. It takes 1 hour to reach Oldtown from Meeren, 2 hours to reach Gulltown from Oldtown, and 45 minutes to reach Winterfell from Gulltown. (For this problem, always consider the shortest route in terms of distance.)
- XAT - 2025
- Logical and Analytical Reasoning Skills
The plots below depict and compare the average monthly incomes (in Rs. ’000) of males and females in ten cities of India in the years 2005 and 2015. The ten cities, marked A-J in the records, are of different population sizes. For a fair comparison, to adjust for inflation, incomes for both the periods are scaled to 2025 prices. Each red dot represents the average monthly income of females in a particular city in a particular year, while each blue dot represents the average monthly income of males in a particular city in a particular year. The gender gap for a city, for a particular year, is defined as the absolute value of the average monthly income of males, minus the average monthly income of females, in that year.
- XAT - 2025
- Data Interpretation