Passage

The IMF has pointed out that the fast-growing economies of Asia face the risk of falling into the `middle-income trap’. It means that average incomes in these countries, which till now have been growing rapidly, will stop growing beyond a point—a point that is well short of incomes in the developed West. The IMF identifies a number of causes of the middle-income trap—none of which is surprising—from infrastructure to weak institutions, to less macroeconomic conditions. The overall cause, says the IMF, is the growth of productivity.

QUESTION

CSAT

Easy

Comprehension

Prelims 2017

Which among the following is the most logical, rational and critical inference that can be made from the above passage?

Select an option to attempt

Explanation

Option A is correct. This aligns with the passage, as stagnant incomes are a risk if productivity does not improve.

Option B is incorrect. This is too broad and not supported. The passage does not say all such economies fall into the trap.

Option C is incorrect. This is overly pessimistic and contradicts the passage, which implies that addressing productivity can help.

Option D is incorrect. This is partially relevant but not strongly supported. The passage highlights risks, not necessarily unsatisfactory performance so far.

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