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Question 1
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
26% (02:29) correct
74%
(02:37) wrong
based on 203
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
78% (00:56) correct 22%
(01:14) wrong
based on 194
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
67% (01:04) correct 33%
(01:13) wrong
based on 199
sessions
History
Date
Time
Result
Not Attempted Yet
Question 4
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
58% (01:06) correct 42%
(01:18) wrong
based on 197
sessions
History
Date
Time
Result
Not Attempted Yet
January 2013 marked the nation’s largest income drop in 20 years, with personal income declining by 3.6 percent compared to the month before. The Commerce Department announced that the decline was the greatest since the same month in 1993. Surprisingly, the same month brought a sudden increase in consumer spending, specifically on services rather than goods. (In January, especially a cold and snowy January, it is common to see increased spending on utilities.) In fact, January’s drop in spending on durable goods such as large appliances and consumer electronics is troublesome, because consumers tend to cut back on big ticket items when they feel economic stress.
A decline in income was expected, given the expiration of the payroll tax cut and higher tax rates for wealthy Americans, but it looked especially dramatic because many companies, anticipating that change, paid special dividends and bonuses prior to the start of the new year in January. In other words, income in December was unusually high, causing post-payroll-taxcut income to appear even more dismal.
The drop in income and increase in spending led naturally to a sharp decrease in the rate of savings, to the lowest level recorded since 2007. On average, consumers saved about 2.4 percent of their disposable income in January, compared to 6.4 percent in December.
It is important not to conflate this unusual one-month dip with the very real and steady decline of median middle-class income. A 2012 Pew Research report declared that only half of American households now rank as middle income, down from 62 percent in the 1970s. Households in the wealthiest 1 percent of U.S. citizens have 288 times the wealth of the average middle-class family. This ongoing decline in income leads to less disposable income, higher levels of debt, decreased savings, and increased dependence on government assistance.
A decline in income was expected, given the expiration of the payroll tax cut and higher tax rates for wealthy Americans, but it looked especially dramatic because many companies, anticipating that change, paid special dividends and bonuses prior to the start of the new year in January. In other words, income in December was unusually high, causing post-payroll-taxcut income to appear even more dismal.
The drop in income and increase in spending led naturally to a sharp decrease in the rate of savings, to the lowest level recorded since 2007. On average, consumers saved about 2.4 percent of their disposable income in January, compared to 6.4 percent in December.
It is important not to conflate this unusual one-month dip with the very real and steady decline of median middle-class income. A 2012 Pew Research report declared that only half of American households now rank as middle income, down from 62 percent in the 1970s. Households in the wealthiest 1 percent of U.S. citizens have 288 times the wealth of the average middle-class family. This ongoing decline in income leads to less disposable income, higher levels of debt, decreased savings, and increased dependence on government assistance.
1. Which of the following expresses the author’s attitude toward the drop in consumer spending on goods as opposed to services?
(A) Unsurprised
(B) Perturbed
(C) Indifferent
(D) Irate
(E) Baffled
(A) Unsurprised
(B) Perturbed
(C) Indifferent
(D) Irate
(E) Baffled
2. According to the passage, dividends played what role in the income decline?
(A) They covered up the decrease in salaries in December.
(B) They led to an unexpected increase in spending.
(C) They failed to cause the predicted improvement in savings.
(D) They caused December’s income to look unnaturally high.
(E) They prevented companies from absorbing tax cuts.
(A) They covered up the decrease in salaries in December.
(B) They led to an unexpected increase in spending.
(C) They failed to cause the predicted improvement in savings.
(D) They caused December’s income to look unnaturally high.
(E) They prevented companies from absorbing tax cuts.
3. Based on the information presented in the passage, what prediction might you make about personal income in February?
(A) It will rebound to December’s levels.
(B) It will drop more than it did in January.
(C) It may drop, but not as much as in January.
(D) It will parallel trends in consumer spending.
(E) It will increase for the top 1 percent of Americans.
(A) It will rebound to December’s levels.
(B) It will drop more than it did in January.
(C) It may drop, but not as much as in January.
(D) It will parallel trends in consumer spending.
(E) It will increase for the top 1 percent of Americans.
4. The final paragraph plays what role in the passage?
(A) It contrasts an unnatural decline with an enduring and authentic decline.
(B) It indicates how sudden decreases can play a role in middleincome decline.
(C) It compares a decline in income for wealthy Americans to that of the middle class.
(D) It suggests a correlation between one kind of income decline and another.
(E) It shows what happens to income decline when tax cuts are figured in
(A) It contrasts an unnatural decline with an enduring and authentic decline.
(B) It indicates how sudden decreases can play a role in middleincome decline.
(C) It compares a decline in income for wealthy Americans to that of the middle class.
(D) It suggests a correlation between one kind of income decline and another.
(E) It shows what happens to income decline when tax cuts are figured in
RC Butler 2023 - Practice Two RC Passages Everyday.
Passage # 217 Date: 03-Jul-2023
This question is part of RC Butler 2023. Click here for Details
Passage # 217 Date: 03-Jul-2023
This question is part of RC Butler 2023. Click here for Details
05 Jul 2023, 09:19
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Unable to understand why for the question 1 the author seems to be anxious and not surprised?
Ain't a Baffled synonym for surprised
And can someone please post the explanations for the above passage
Ain't a Baffled synonym for surprised
And can someone please post the explanations for the above passage
06 Jul 2023, 12:42
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harshitsidhwa
Explanation
1. Which of the following expresses the author’s attitude toward the drop in consumer spending on goods as opposed to services?
Explanation
Based on the information provided in the passage, the author's attitude toward the drop in consumer spending on goods as opposed to services can be inferred as (B) Perturbed.
The passage mentions that the drop in spending on durable goods, such as large appliances and consumer electronics, is troublesome. This indicates that the author is concerned or disturbed by this decline in consumer spending. It is stated that consumers tend to cut back on big ticket items, like durable goods, when they feel economic stress. Therefore, the decrease in spending on goods suggests that consumers may be experiencing financial difficulties or perceiving economic uncertainty, which is a cause for concern.
The author does not express surprise, indifference, anger, or confusion regarding this drop in consumer spending on goods. The use of the word "troublesome" indicates that the author finds this trend concerning or bothersome, suggesting a perturbed attitude.
Hence, the correct answer is (B) Perturbed.
Answer: B
Explanation
Based on the information provided in the passage, the author's attitude toward the drop in consumer spending on goods as opposed to services can be inferred as (B) Perturbed.
The passage mentions that the drop in spending on durable goods, such as large appliances and consumer electronics, is troublesome. This indicates that the author is concerned or disturbed by this decline in consumer spending. It is stated that consumers tend to cut back on big ticket items, like durable goods, when they feel economic stress. Therefore, the decrease in spending on goods suggests that consumers may be experiencing financial difficulties or perceiving economic uncertainty, which is a cause for concern.
The author does not express surprise, indifference, anger, or confusion regarding this drop in consumer spending on goods. The use of the word "troublesome" indicates that the author finds this trend concerning or bothersome, suggesting a perturbed attitude.
Hence, the correct answer is (B) Perturbed.
Answer: B
