Example 10
Read the passage below and answer the questions:
[CAT 2017]
Do sports mega events like the summer Olympic Games benefit the host city economically? It depends, but the prospects are less than rosy. The trick is converting... several billion dollars in operating costs during the l 7-day fiesta of the Games into a basis for long-term economic returns. These days, the summer Olympic Games themselves generate total revenue of $4 billion to $5 billion, but the lion's share of this goes to the International Olympics Committee, the National Olympics Committees and the International Sports Federations. Any economic benefit would have to flow from the value of the Games as an advertisement for the city, the new transportation and communications infrastructure that was created for the Games, or the ongoing use of the new facilities.
Evidence suggests that the advertising effect is far from certain. The infrastructure benefit depends on the initial condition of the city and the effectiveness of the planning. The facilities benefit is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000-seat Olympic stadiums. The latter require a conversion plan for future use, the former are usually doomed to near vacancy. Hosting the summer Games generally requires 30-plus sports venues and dozens of training centers. Today, the Bird's Nest in Beijing sits virtually empty, while the Olympic Stadium in Sydney costs some $30 million a year to operate.
Part of the problem is that Olympics planning takes place in a frenzied and time-pressured atmosphere of intense competition with the other prospective host cities - not optimal conditions for contemplating the future shape of an urban landscape. Another part of the problem is that urban land is generally scarce and growing scarcer. The new facilities often stand for decades or longer. Even if they have future use, are they the best use of precious urban real estate?
Further, cities must consider the human cost. Residential areas often are razed and citizens relocated (without adequate preparation or compensation). Life is made more hectic and congested. There are, after all, other productive uses that can be made of vanishing fiscal resources.
Question 1 of 3
The central point in the first paragraph is that the economic benefits of the Olympic Games
(1) are shared equally among the three organising committees.
(2) accrue mostly through revenue from advertisements and ticket sales.
(3) accrue to host cities, if at all, only in the long term.
(4) are usually eroded by expenditure incurred by the host city.
Solution
On this passage, the author explains why hosting mega sports events such as the Olympics does not make economic sense for the host city. The author explains that the city spends billions, but does not get much of the ticket sales. Instead, they might get benefits from advertisement, infrastructure or reuse of the facilities, which will come in the long term (The trick is converting... several billion dollars in operating costs during the l 7-day fiesta of the Games into a basis for long-term economic returns).
This is mentioned in option (3) – which tells us that if the host cities get any benefits, it will be in the long term (if at all means that the host city might not benefit. We can infer that this is true from the author's words the prospects are less than rosy).
Option (4) is also correct, but option (3) has an extra point about the long-term benefits, and hence, we can eliminate option (4) in favour of option (3).
Option (1) may not be true, as we do not know how the committees divide the ticket revenues). It is also not the central point of the first paragraph. Therefore, we can eliminate this option.
Option (2) is also factually incorrect, as there are four avenues of returns – ticket sales, advertisements, infrastructure and reuse of the facilities). Hence, we can eliminate this option.
Thus, option (3) is the correct choice.
Answer: (3) accrue to host cities, if at all, only in the long term.
Question 2 of 3
Sports facilities built for the Olympics are not fully utilised after the Games are over because
(1) their scale and the costs of operating them are large.
(2) their location away from the city centre usually limits easy access.
(3) the authorities do not adapt them to local conditions.
(4) they become outdated having being built with little planning and under time pressure.
Solution
The author explains why sports facilities are not fully utilised in the second paragraph. The author tells us that some facilities need to be converted for future use, others are doomed to near vacancy. Other issues are the sheer number of facilities built and the huge operating costs (the Olympic Stadium in Sydney costs some $30 million a year to operate).
Option (1) mentioned the size and number (scale) as well as the operating costs. Therefore, it is the correct choice.
Option (2) is not mentioned in the passage, and can be eliminated.
Option (3) is incorrect, as the author speaks about conversion plans. Therefore, it can be eliminated.
Option (4) is unrelated to this point (utilisation of the sports facilities). Planning and time pressure is mentioned with respect to the infrastructure fo the city. Thus, we can eliminate this point as well.
Answer: (1) their scale and the costs of operating them are large.
Question 3 of 3
The author feels that the Games place a burden on the host city for all of the following reasons EXCEPT that
(1) they divert scarce urban land from more productive uses.
(2) they involve the demolition of residential structures to accommodate sports facilities and infrastructure.
(3) the finances used to fund the Games could be better used for other purposes.
(4) the influx of visitors during the Games places a huge strain on the urban infrastructure.
Solution
Let us validate the options with the passage, and select the one which is not mentioned.
Option (1) is mentioned as an issue (urban land is generally scarce and growing scarcer... are they the best use of precious urban real estate?), and can be eliminated.
Option (2) is also mentioned (Residential areas often are razed and citizens relocated), and can be eliminated.
Option (3) is the author's conclusion (There are, after all, other productive uses that can be made of vanishing fiscal resources), and hence, can be eliminated.
Option (4), however, is not mentioned in the passage, and therefore, is the correct choice.
Answer: (4) the influx of visitors during the Games places a huge strain on the urban infrastructure.