EA Reading Comprehension 2

Question 1

Passage: 'The governance of multinational corporations presents unique challenges for regulators.
When a company operates across dozens of jurisdictions, it can exploit differences in tax codes, environmental standards, and labor laws.
International agreements aimed at harmonizing these rules have achieved limited success, as individual nations are reluctant to cede regulatory authority.' What problem does the passage identify?

Accepted Answer

Differences in national rules allow multinationals to avoid uniform oversight

Answer

Multinational corporations pay excessive taxes compared to domestic companies

Answer

Regulators lack the technical expertise to oversee large corporations

Answer

International agreements have successfully eliminated regulatory inconsistencies

Question 2

Passage: 'Cognitive load theory suggests that human working memory has a limited capacity. When instructional materials exceed this capacity, learning suffers. Educational designers therefore advocate for chunking information, using visual aids, and reducing extraneous content to optimize the learning experience.' Based on the passage, an instructor who presents too much information at once would most likely:

Accepted Answer

Overload working memory and impair student learning

Answer

Improve student engagement by keeping them continuously stimulated

Answer

Help students develop stronger memory capacity over time

Answer

Have no measurable impact on overall student performance

Question 3

Passage: 'The term disruptive innovation was popularized by Clayton Christensen to describe how smaller companies with fewer resources can challenge established businesses. Disruptive innovations often begin by targeting overlooked segments of a market, offering simpler or more affordable products before eventually displacing incumbent firms.' The word 'incumbent' as used in the passage most nearly means:

Accepted Answer

Currently holding an established dominant market position

Answer

Recently established and growing rapidly

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Financially troubled and vulnerable to competition

Answer

Technologically advanced beyond their competitors

Question 4

Passage: 'Climate models predict with high confidence that average global temperatures will continue rising throughout the twenty-first century. The magnitude of warming depends critically on future greenhouse gas emissions, with the most severe projections requiring significant reductions in emissions to avoid. Adaptation strategies will be necessary regardless of mitigation efforts.' Which statement is best supported by the passage?

Accepted Answer

The severity of climate change depends significantly on future human choices about emissions

Answer

Climate scientists are uncertain whether temperatures will rise in the coming century

Answer

Emissions reductions alone will fully resolve the climate problem

Answer

Adaptation is unnecessary if mitigation efforts are implemented successfully

Question 5

Passage: 'Venture capital funding for technology startups reached record levels in the early 2020s, fueled by low interest rates and investor optimism. When interest rates rose sharply in 2022 and 2023, funding contracted significantly. Many startups that had grown accustomed to plentiful capital were forced to cut costs, raise revenue, or shut down.' The passage implies that the contraction in venture capital funding was primarily caused by:

Accepted Answer

Rising interest rates that altered the investment environment

Answer

Poor financial performance by technology startups during this period

Answer

Regulatory changes specifically targeting the technology investment sector

Answer

Declining consumer demand for technology products and services

Question 6

Passage: 'Organizational culture refers to the shared values, beliefs, and behaviors that characterize how members of an organization interact and work. Culture is often described as the way we do things here. Strong cultures can drive consistent performance and employee alignment, but they can also create rigidity that impedes adaptation to change.' The author presents organizational culture as:

Accepted Answer

Both a potential asset and a potential liability for organizations

Answer

Always beneficial to organizational performance and cohesion

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A static phenomenon that remains unchanged regardless of external pressures

Answer

Primarily a tool for controlling and standardizing employee behavior

Question 7

Passage: 'The placebo effect demonstrates that a patient's expectation of treatment can itself produce measurable physiological changes. In double-blind clinical trials, some patients receiving inert substances report significant symptom improvement. This phenomenon complicates drug approval processes, as new treatments must demonstrate efficacy beyond placebo effects.' Which conclusion is best supported by the passage?

Accepted Answer

New drugs must demonstrate benefits above what patient expectation alone produces

Answer

The placebo effect is too small to meaningfully affect clinical trial results

Answer

Inert substances are sometimes more effective than genuine drug treatments

Answer

The placebo effect only works when patients know they are receiving a real treatment