CAT 2019 Slot 1 VARC RC Passage 2 Q6–Q10
A reading comprehension passage from the Verbal Ability & Reading Comprehension (VARC) section of CAT 2019 Slot 1, with 5 questions (RC · Economics & Business). Answers are CAT's official key.
The passage
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.
Question 6
- AAn exponential surge in their sales enables start-ups to meet their desired profit goals without expanding their product catalogue
- BWith the motive of promoting certain rival companies, the government decides to double the tax-rates for these start-ups.
- CWith Casper and Glossier venturing into new product ranges, their regular customers start losing trust in the companies and their products.
- DStart-ups with few product options are no exception to the American consumer market that is deeply divided along class lines.
Answer: (A) An exponential surge in their sales enables start-ups to meet their desired profit goals without expanding their product catalogue RC · Economics & Business MCQ
A worked solution for this question is being written. Meanwhile, practise it in a timed mock and see how other aspirants did.
Question 7
- AThey are increasing the purchasing power of poor Americans.
- BThey are exceptions to a dominant trend in consumer markets.
- CThey are facilitating a uniform distribution of commodities in the market.
- DThey might transform into what they were exceptions to.
Answer: (D) They might transform into what they were exceptions to. RC · Economics & Business MCQ
A worked solution for this question is being written. Meanwhile, practise it in a timed mock and see how other aspirants did.
Question 8
- AA range of 10 products priced between $5 and $10.
- BA range of 25 products priced between $10 and $25.
- CA range of 25 products priced between $5 and $10.
- DA range of 10 products priced between $10 and $25.
Answer: (A) A range of 10 products priced between $5 and $10. RC · Economics & Business MCQ
A worked solution for this question is being written. Meanwhile, practise it in a timed mock and see how other aspirants did.
Question 9
- Aproduct options increased market competition, bringing down the prices of commodities, which, in turn, increased purchasing power of the poor.
- Bthe annual sales growth of companies with fewer product options were higher than that of companies which curated their products for target consumers.
- Cthe annual sale of companies that hired lifestyle influencers on Instagram for marketing their products were 40% less than those that did not.
- Dthe empowerment felt by purchasers in buying a commodity were directly proportional to the number of options they could choose from.
Answer: (B) the annual sales growth of companies with fewer product options were higher than that of companies which curated their products for target consumers. RC · Economics & Business MCQ
A worked solution for this question is being written. Meanwhile, practise it in a timed mock and see how other aspirants did.
Question 10
- Atoo many options have made it difficult for consumers to trust products.
- Bconsumers are susceptible to marketing images that they see on social media.
- Chaving too many product options can be overwhelming for consumers.
- Dconsumers tend to prefer products by start-ups over those by established companies.
Answer: (D) consumers tend to prefer products by start-ups over those by established companies. RC · Economics & Business MCQ
A worked solution for this question is being written. Meanwhile, practise it in a timed mock and see how other aspirants did.