Question

What can be inferred about China’s economic model from the passage?

• A. It has been heavily dependent on exports for growth.
• B. It has been able to boost domestic consumption.
• C. It has created more wealth for certain sections of the society than the others.
• D. Both A and C

Answer 1

The correct option is D Both A and C

While exports are not mentioned specifically in the passage, it can be inferred that in the absence of domestic spending, investments will spur an industrial infrastructure that will churn out goods for exports. The author also says that China needs reforms to spread purchasing power. This means that the purchasing power is unevenly spread at present with a few people doing most of the spending and the others not being able to do so. Option B is just the opposite of what the author says.