Question

What, according to the author, has resulted in a widespread belief in the resilience of modern capitalism?

• A. Growth in the economies of Western countries despite shocks in the form of increase in levels of indebtedness and inflated asset prices
• B. Increase in the prosperity of Western countries and China despite rising oil prices
• C. Continued growth of Western economies despite a rise in terrorism, an increase in oil prices and other similar shocks
• D. The success of continued reforms aimed at making Western economies more dynamic, competitive and efficient

Answer 1

The correct option is C Continued growth of Western economies despite a rise in terrorism, an increase in oil prices and other similar shocks

Refer to the lines from paragraph 6: “There are those who point out, rightly, that modern industrial capitalism has proved mightily resilient these past 250 years, and that a sign of the enduring strength of the system has been the way it apparently shrugged off everything – a stock market crash, 9/11, rising oil prices – that have been thrown at it in the half decade since the millennium.” This helps us identify option C as the right answer.