CAT/2023.2

Question . 3

There is a sentence that is missing in the paragraph below. Look at the paragraph and decide where (option 1, 2, 3, or 4) the following sentence would best fit.

Sentence: Dualism was long held as the defining feature of developing countries in contrast to developed countries, where frontier technologies and high productivity were assumed to prevail.

Paragraph: ___(1)___. At the core of development economics lies the idea of ‘productive dualism’: that poor countries’ economies are split between a narrow ‘modern’ sector that uses advanced technologies and a larger ‘traditional’ sector characterized by very low productivity.___(2)___. While this distinction between developing and advanced economies may have made some sense in the 1950s and 1960s, it no longer appears to be very relevant. A combination of forces have produced a widening gap between the winners and those left behind.___(3)___. Convergence between poor and rich parts of the economy was arrested and regional disparities widened.___(4)___. As a result, policymakers in advanced economies are now grappling with the same questions that have long preoccupied developing economies: mainly how to close the gap with the more advanced parts of the economy.