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Official Explanation

2. Which of the following might the author of the passage consider an “indirect loss” associated with a disaster?

Explanation

In the final paragraph of the passage, the authors discuss what they call direct and indirect losses. Direct losses, they note, are those that involve the destruction of physical assets; indirect losses are those that arise as a result of the direct ones.

Choices (A), (B), (D), and (E) all involve the actual destruction of physical assets: a library, school building, livestock, and a pavilion, respectively. Choice (C), on the other hand, reports the loss of income due to a direct loss — a mall flood. Thus, only Choice (C) denotes an indirect loss because loss in sales isn’t tangible and therefore isn’t a physical asset.

Answer: C
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