Find all School-related info fast with the new School-Specific MBA Forum

It is currently 25 Jun 2016, 02:18
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

GMATPREP ChallengeQ -Many people believe that because wages

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Current Student
User avatar
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 993
Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Followers: 152

Kudos [?]: 1156 [0], given: 226

Premium Member Reviews Badge
GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 12 Aug 2014, 04:45
5
This post was
BOOKMARKED
NEW PROJECT!: Back to basic => Give your explanation- Get Kudos Point for best explanation

Passage-11 GMATPrep RCs-Collection(Main article)
Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries. Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise. Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages. Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.
1. The passage suggests that which of the following would best explain why, in a developing country, some firms that have raised their productivity continue to pay low wages?
A. Wages are influenced by the extent to which productivity increases are based on the latest technology.
B. Wages are influenced by the extent to which labor unions have organized the country's workers.
C. Wages are not determined by productivity improvements in goods traded internationally.
D. The average productivity of the workers in the country has not risen.
E. The education level of the workers in the country determines wages.
[Reveal] Spoiler:
D


2. The primary purpose of the passage is to
A. identify the origin of a common misconception
B. discuss the implications of a generally accepted principle
C. present information relevant in evaluating a commonly held belief
D. defend a controversial assertion against a variety of counterarguments
E. explain under what circumstances a well-known phenomenon occurs
[Reveal] Spoiler:
C


3. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
A. Advanced technology could move more quickly from developed countries to developing countries.
B. Developed countries could compete more effectively for jobs with developing countries.
C. A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.
D. A country's productivity could increase without significantly increasing the value of its currency.
E. Workers could obtain higher wages by increasing their productivity.
[Reveal] Spoiler:
D


_________________

Piyush K
-----------------------
Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time. ― Thomas A. Edison
Don't forget to press--> Kudos :)
My Articles: 1. WOULD: when to use? | 2. All GMATPrep RCs (New)
Tip: Before exam a week earlier don't forget to exhaust all gmatprep problems specially for "sentence correction".


Last edited by Harley1980 on 09 Aug 2015, 15:16, edited 1 time in total.
OA added
2 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Joined: 05 Nov 2012
Posts: 474
Concentration: Technology, Other
GMAT 1: 0 Q47 V29
Followers: 21

Kudos [?]: 258 [2] , given: 596

GMAT ToolKit User Premium Member Reviews Badge CAT Tests
GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 12 Aug 2014, 05:36
2
This post received
KUDOS

Updated time: Time taken 5 mins.

2. The primary purpose of the passage is to
C. present information relevant in evaluating a commonly held belief
"Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries.
blah blah
When productivity in a developing country does catch up, experience suggests that wages there will rise.
"


3. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
D. A country's productivity could increase without significantly increasing the value of its currency.
"if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely."

Having tough time with Q1.
Regards.
_________________

--------------------------------------------------------
Regards :)


Last edited by JarvisR on 19 May 2016, 00:08, edited 2 times in total.
Added timer.
2 KUDOS received
Senior Manager
Senior Manager
avatar
Status: On a mountain of skulls, in the castle of pain, I sit on a throne of blood.
Joined: 30 Jul 2013
Posts: 325
Followers: 7

Kudos [?]: 107 [2] , given: 132

GMAT ToolKit User Reviews Badge
Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 12 Aug 2014, 06:15
2
This post received
KUDOS
1
This post was
BOOKMARKED
1. The passage suggests that which of the following would best explain why, in a developing country, some firms that have raised their productivity continue to pay low wages?
A. Wages are influenced by the extent to which productivity increases are based on the latest technology. We are looking for avg productivity of the whole country.
B. Wages are influenced by the extent to which labor unions have organized the country's workers. No mention of labour unions in the passage
C. Wages are not determined by productivity improvements in goods traded internationally. We are looking for avg productivity of the whole country.
D. The average productivity of the workers in the country has not risen. Bingo. That is what the bracketed part in the 12th line says.
E. The education level of the workers in the country determines wages. We are looking for avg productivity of the whole country.

2. The primary purpose of the passage is to
A. identify the origin of a common misconception Not discussing the "origin". Its more of a debunking of a misconception.
B. discuss the implications of a generally accepted principle Passages challenges the principle.
C. present information relevant in evaluating a commonly held belief Bingo.
D. defend a controversial assertion against a variety of counterarguments It takes an popular assertion and presents various counterarguments to debunk that assertion
E. explain under what circumstances a well-known phenomenon occurs Doesnt say anything about circumstances about a phenomenon. It presents cases when the "phenomenon" may not hold.

3. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
A. Advanced technology could move more quickly from developed countries to developing countries. Advanced technology might be better adopted in the developing country.
B. Developed countries could compete more effectively for jobs with developing countries. It doesnt say that
C. A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency. It has to increase its sophistication
D. A country's productivity could increase without significantly increasing the value of its currency.Productivity=Avg wages*Currency Value. To increase productivity and keeping one constant, we need to increase the other factor. The passage seems to suggest that developing countries like to undervalue their currencies. So productivity can only be achieved by increasing wages. Close call. Lets put this aside for the moment. Doesnt sound exciting
E. Workers could obtain higher wages by increasing their productivity. Bingo. This can only be done by increasing avg wages if the country wants to keep the currency low (this can happen if the capital is restricted.
Intern
Intern
avatar
Joined: 05 Jul 2013
Posts: 26
GMAT 1: 710 Q48 V40
GPA: 3
Followers: 0

Kudos [?]: 2 [0], given: 375

Reviews Badge CAT Tests
Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 25 Aug 2014, 12:46
My take

1.D
2.C
3.D (got stuck with this one) - if the capital is restricted then its easier for the countries to undervalue their currency and improve productivity with the help of advancements in technology. - This is my reasoning (need help with this option)
Expert Post
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 634
Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
Followers: 93

Kudos [?]: 435 [0], given: 78

GMAT ToolKit User Premium Member Reviews Badge
Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 24 Nov 2014, 23:58
Expert's post
6 minutes.
1. D
2. C
3. D

Please provide the OA
_________________

Regards,

S

Consider +1 KUDOS if you find this post useful

Director
Director
User avatar
Joined: 07 Aug 2011
Posts: 582
Concentration: International Business, Technology
GMAT 1: 630 Q49 V27
Followers: 3

Kudos [?]: 323 [0], given: 75

GMAT ToolKit User
Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 17 Mar 2015, 09:58
PiyushK wrote:
NEW PROJECT!: Back to basic => Give your explanation- Get Kudos Point for best explanation

Passage-11 GMATPrep RCs-Collection(Main article)
Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries. Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise. Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages. Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.
1. The passage suggests that which of the following would best explain why, in a developing country, some firms that have raised their productivity continue to pay low wages?
A. Wages are influenced by the extent to which productivity increases are based on the latest technology.
B. Wages are influenced by the extent to which labor unions have organized the country's workers.
C. Wages are not determined by productivity improvements in goods traded internationally.
D. The average productivity of the workers in the country has not risen.
E. The education level of the workers in the country determines wages.
[Reveal] Spoiler:
Soon


2. The primary purpose of the passage is to
A. identify the origin of a common misconception
B. discuss the implications of a generally accepted principle
C. present information relevant in evaluating a commonly held belief
D. defend a controversial assertion against a variety of counterarguments
E. explain under what circumstances a well-known phenomenon occurs
[Reveal] Spoiler:
Soon


3. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
A. Advanced technology could move more quickly from developed countries to developing countries.
B. Developed countries could compete more effectively for jobs with developing countries.
C. A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.
D. A country's productivity could increase without significantly increasing the value of its currency.
E. Workers could obtain higher wages by increasing their productivity.
[Reveal] Spoiler:
Soon



D
C
D
PiyushK , kindly provide OAs.

thanks
lucky
_________________

Thanks,
Lucky

_______________________________________________________
Kindly press the Image to appreciate my post !! :-)

Manager
Manager
User avatar
Joined: 21 Jun 2014
Posts: 150
Location: United States
Concentration: General Management, Strategy
GMAT 1: 630 Q45 V31
GPA: 3.4
WE: Engineering (Computer Software)
Followers: 0

Kudos [?]: 54 [0], given: 59

Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 25 Jun 2015, 19:20
1D ,2C ,3C
Time Taken 4 minutes 3 seconds
Please provide the OA .

Regards,
Manish Khare
_________________

Regards,
Manish Khare
"Every thing is fine at the end. If it is not fine ,then it is not the end "

Current Student
User avatar
Joined: 03 Feb 2013
Posts: 929
Location: India
Concentration: Operations, Strategy
GMAT 1: 760 Q49 V44
GPA: 3.88
WE: Engineering (Computer Software)
Followers: 107

Kudos [?]: 667 [0], given: 546

Reviews Badge
Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 04 Jul 2015, 22:54
OAs (From GMATPrep Software)

1) D
2) C
3) D

Stay tuned for my analysis on the RC.
_________________

Thanks,
Kinjal
Struggling with GMAT ? Experience http://www.gmatify.com/
My Debrief : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267.html#p1449379
My Application Experience : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267-40.html#p1516961
My Linkedin Handle: https://www.linkedin.com/profile/view?id=AAIAAAbtjagB9G1MrEzTRYDRGroXuSmZO0ZhoK0

Please click on Kudos, if you think the post is helpful

Intern
Intern
avatar
Joined: 21 May 2015
Posts: 7
Followers: 0

Kudos [?]: 0 [0], given: 164

Re: GMATPREP ChallengeQ -Many people believe that because wages [#permalink]

Show Tags

New post 18 May 2016, 00:07
The passage starts with a claim and then it goes on to explain by providing details that the way it's thought it's not actually so. And that's the primary purpose of the passage. Now let's dive in to the options

2. The primary purpose of the passage is to
A. identify the origin of a common misconception --> There's no discussion of some origin or the root cause of anything. Chuck it out!
B. discuss the implications of a generally accepted principle --> There are no deductions or implications rather the passage explains details about a commonly held belief (evident from the first line : "many people believe that because wages..."). Chuck it out !
C. present information relevant in evaluating a commonly held belief --> Perfect ! This option shows that passage tries to evaluate a commonly held belief by presenting details/explanations. Answer
D. defend a controversial assertion against a variety of counterarguments --> There is no controversy discussed as such. Chuck it out !
E. explain under what circumstances a well-known phenomenon occurs --> A well known phenomenon ? Simply chuck it out !


To answer the below question we need to understand the lines where the same has been mentioned.
"However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages. Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely."


So basically it says in a freely moving capital, if productivity increases, then wages increases, and subsequently currency value will appreciate. THe question asks us what happens if the capital is not freely movable ? Simple the question of currency appreciation/ depreciation is out of the picture. Productivity could increase without the significant increase in currency value.

3. The passage suggests that if the movement of capital in the world were restricted, which of the following would be likely?
A. Advanced technology could move more quickly from developed countries to developing countries. --> advanced technology is not discussed in the context of restricting/freely flowing capital
B. Developed countries could compete more effectively for jobs with developing countries. --> same here, no mention of jobs.
C. A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency. --> to some extent correct but then the term productivity is missing and also the sophistication of the technology is not discussed in the context of restricting /freely flowing capital.
D. A country's productivity could increase without significantly increasing the value of its currency. --> Bang on! This is what exactly we can deduce.
E. Workers could obtain higher wages by increasing their productivity. --> higher wages vs productivity exists even when currency appreciation is discussed.
Re: GMATPREP ChallengeQ -Many people believe that because wages   [#permalink] 18 May 2016, 00:07
    Similar topics Author Replies Last post
Similar
Topics:
2 GMATPREP ChallengeQ -Many managers are influenced by dangerous Lucky2783 3 24 Mar 2015, 08:29
3 Experts publish their posts in the topic GMATPREP ChallengeQ -Many United States companies believe PiyushK 8 12 Aug 2014, 08:02
6 Experts publish their posts in the topic Many people believe that because wages are lower in sd.1223 1 22 Jun 2013, 23:50
11 Experts publish their posts in the topic Many people believe that because wages are lower in developi metallicafan 15 14 Oct 2010, 17:04
4 Many people believe that because wages are lower in omega17 2 05 May 2008, 15:48
Display posts from previous: Sort by

GMATPREP ChallengeQ -Many people believe that because wages

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.