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GMATPREP ChallengeQ -The view has prevailed for the better

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GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 12 Aug 2014, 08:43
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Passage-28 GMATPrep RCs-Collection(Main article)
The view has prevailed for the better part of the twentieth century that small firms do not perform an important role in Western economies. Official policies in many countries have favored large units of production because there were strong reasons to believe that large firms were superior to small firms in virtually every aspect of economic performance--productivity, technological progress, and job security and compensation. However, in the 1970s, evidence began to suggest that small firms in some countries were outperforming their larger counterparts. Perhaps the best example of this trend was in the steel industry, where new firms entered the market in the form of "mini-mills," and small-firm employment expanded, while many large companies shut down plants and reduced employment. Although no systematic evidence exists to determine unequivocally whether smaller units of production are as efficient as large firms or are, in fact, more efficient, some researchers have concluded that the accumulated evidence to date indicates that small firms are at least not burdened with an inherent size disadvantage.

Thus, an alternative view has emerged in the economics literature, arguing that small firms make several important contributions to industrial markets. First, small firms are often the source of the kind of innovative activity that leads to technological change. Small firms generate market turbulence that creates additional dimensions of competition, and they also promote international competition through newly created niches. Finally, small firms in recent years have generated the preponderant share of new jobs.

However, empirical knowledge about the relative roles of large and small firms is generally based upon anecdotal evidence and case studies, and such evidence has proved inadequate to answer major questions concerning the role of small firms across various industries and nations. An additional difficulty is that it is not obvious what criteria one should use to distinguish small firms from large ones. While a "small firm" is often defined as an enterprise with fewer than 500 employees, research studies of small firms use a wide variety of definitions.
1. The passage is primarily concerned with
A dismissing a challenge to a traditional viewpoint
B suggesting a new solution to a long-standing problem
C resolving a conflict between two competing viewpoints
D discussing the emergence of an alternative viewpoint
E defending an alternative viewpoint against possible counter evidence
[Reveal] Spoiler:
D


2. The passage suggests which of the following about the empirical study of small firms' role?
A. Anecdotal evidence does not support the theory that small firms' role is significant.
B. Degrees of market turbulence are the primary indicator of small firms' role.
C. An examination of new niches created by small firms has provided important data for the analysis of such firms' role.
D. Case studies have provided reliable evidence to answer major questions concerning small firms' role.
E. A more precise definition of the term "small firm" is crucial to making a conclusive analysis about small firms' role.
[Reveal] Spoiler:
E


3. Which of the following best describes the organization of the first paragraph of the passage?
A. A viewpoint is introduced, counter evidence is presented, and a new perspective is suggested.
B. Opposing viewpoints are discussed, and evidence is provided that refutes both of those viewpoints.
C. A hypothesis is described, supported with specific evidence, and then reaffirmed.
D. An alternative viewpoint is presented, criticized, and dismissed in light of new evidence.
E. Opposing viewpoints are presented, discussed, and then found to be more similar than previously supposed.
[Reveal] Spoiler:
A


4. According to the passage, an important contribution of small firms to industrial markets is that small firms
A. operate more efficiently than large firms
B. offer high job security and compensation
C. cause international competition to decrease
D. help prevent market turbulence from affecting competition
E. frequently undertake activities that result in technological change
[Reveal] Spoiler:
E


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Last edited by PiyushK on 21 Aug 2014, 07:36, edited 1 time in total.
OA added
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 13 Aug 2014, 02:23

Time taken 10 mins
1. The passage is primarily concerned with
D discussing the emergence of an alternative viewpoint
"Author is neutral in the argument.First a traditional view point is presented and then and then counterview evidences are presented.The discussion is continued in the second para by mentioning the pros of small firms.In last para, the author mentions why the the new evidences are inadequate to answer major questions concerning the role of small firms."
So overal Para is discussing the counter evidences.

2. The passage suggests which of the following about the empirical study of small firms' role?
E. A more precise definition of the term "small firm" is crucial to making a conclusive analysis about small firms' role.
"An additional difficulty is that it is not obvious what criteria one should use to distinguish small firms from large ones. While a "small firm" is often defined as an enterprise with fewer than 500 employees, research studies of small firms use a wide variety of definitions."


3. Which of the following best describes the organization of the first paragraph of the passage?
A. A viewpoint is introduced, counter evidence is presented, and a new perspective is suggested.
"The view has prevailed for the better....
blah blah
However, in the 1970s, evidence began to suggest that small firms in some countries were outperforming their larger counterparts.
blah blah
Although no systematic evidence exists to determine unequivocally whether smaller units of production are as efficient as large firms or are, in fact, more efficient, some researchers have concluded that the accumulated evidence to date indicates that small firms are at least not burdened with an inherent size disadvantage.
"

4. According to the passage, an important contribution of small firms to industrial markets is that small firms
E. frequently undertake activities that result in technological change
"small firms are often the source of the kind of innovative activity that leads to technological change"
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Last edited by PiyushK on 13 Aug 2014, 20:33, edited 1 time in total.
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 13 Aug 2014, 06:02
my take in 8 min 51 sec
1 D
2 C
3 A
4 E
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 13 Aug 2014, 06:55
1 - D
2 - E
3 - C
4 - E

OAs please.
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 20 Aug 2014, 11:02
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First of all, kudos to Piyush for this amazing effort!
6 mins 53 secs.
1 - D
2 - E
3 - A
4 - E

Please provide the OA.
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 21 Aug 2014, 07:43
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maggie27 wrote:
First of all, kudos to Piyush for this amazing effort!
6 mins 53 secs.
1 - D
2 - E
3 - A
4 - E

Please provide the OA.


Thanks Maggie, You got all right. Your speed is also good. +1 Kudos to you.
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 28 Dec 2014, 22:59
Expert's post
9 mins
All correct
Medium difficulty pasage
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GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 12 Jan 2015, 15:08
04:59 all correct. Wish this happens to me on the real exam though hahah

K+1 :-)
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 21 Mar 2015, 10:30
PiyushK wrote:
NEW PROJECT!: Back to basic => Give your explanation- Get Kudos Point for best explanation

Passage-28 GMATPrep RCs-Collection(Main article)
The view has prevailed for the better part of the twentieth century that small firms do not perform an important role in Western economies. Official policies in many countries have favored large units of production because there were strong reasons to believe that large firms were superior to small firms in virtually every aspect of economic performance--productivity, technological progress, and job security and compensation. However, in the 1970s, evidence began to suggest that small firms in some countries were outperforming their larger counterparts. Perhaps the best example of this trend was in the steel industry, where new firms entered the market in the form of "mini-mills," and small-firm employment expanded, while many large companies shut down plants and reduced employment. Although no systematic evidence exists to determine unequivocally whether smaller units of production are as efficient as large firms or are, in fact, more efficient, some researchers have concluded that the accumulated evidence to date indicates that small firms are at least not burdened with an inherent size disadvantage.

Thus, an alternative view has emerged in the economics literature, arguing that small firms make several important contributions to industrial markets. First, small firms are often the source of the kind of innovative activity that leads to technological change. Small firms generate market turbulence that creates additional dimensions of competition, and they also promote international competition through newly created niches. Finally, small firms in recent years have generated the preponderant share of new jobs.

However, empirical knowledge about the relative roles of large and small firms is generally based upon anecdotal evidence and case studies, and such evidence has proved inadequate to answer major questions concerning the role of small firms across various industries and nations. An additional difficulty is that it is not obvious what criteria one should use to distinguish small firms from large ones. While a "small firm" is often defined as an enterprise with fewer than 500 employees, research studies of small firms use a wide variety of definitions.
1. The passage is primarily concerned with
A dismissing a challenge to a traditional viewpoint
B suggesting a new solution to a long-standing problem
C resolving a conflict between two competing viewpoints
D discussing the emergence of an alternative viewpoint
E defending an alternative viewpoint against possible counter evidence
[Reveal] Spoiler:
D


2. The passage suggests which of the following about the empirical study of small firms' role?
A. Anecdotal evidence does not support the theory that small firms' role is significant.
B. Degrees of market turbulence are the primary indicator of small firms' role.
C. An examination of new niches created by small firms has provided important data for the analysis of such firms' role.
D. Case studies have provided reliable evidence to answer major questions concerning small firms' role.
E. A more precise definition of the term "small firm" is crucial to making a conclusive analysis about small firms' role.
[Reveal] Spoiler:
E


3. Which of the following best describes the organization of the first paragraph of the passage?
A. A viewpoint is introduced, counter evidence is presented, and a new perspective is suggested.
B. Opposing viewpoints are discussed, and evidence is provided that refutes both of those viewpoints.
C. A hypothesis is described, supported with specific evidence, and then reaffirmed.
D. An alternative viewpoint is presented, criticized, and dismissed in light of new evidence.
E. Opposing viewpoints are presented, discussed, and then found to be more similar than previously supposed.
[Reveal] Spoiler:
A


4. According to the passage, an important contribution of small firms to industrial markets is that small firms
A. operate more efficiently than large firms
B. offer high job security and compensation
C. cause international competition to decrease
D. help prevent market turbulence from affecting competition
E. frequently undertake activities that result in technological change
[Reveal] Spoiler:
E




Piyush,

first of all My Sincere thanks to you for putting up these passages on gmatclub .
Could you please tell me why A is wrong for this question ?
2. The passage suggests which of the following about the empirical study of small firms' role?
A. Anecdotal evidence does not support the theory that small firms' role is significant.
B. Degrees of market turbulence are the primary indicator of small firms' role.
C. An examination of new niches created by small firms has provided important data for the analysis of such firms' role.
D. Case studies have provided reliable evidence to answer major questions concerning small firms' role.
E. A more precise definition of the term "small firm" is crucial to making a conclusive analysis about small firms' role.

thanks
Lucky
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 08 Jul 2015, 19:08
1D 2E 3A 4E
3 Minutes 31 seconds

Regards,
Manish Khare
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Re: GMATPREP ChallengeQ -The view has prevailed for the better [#permalink] New post 08 Jul 2015, 19:17
Hello Lucky2783 ,

Question 2: The passage suggests which of the following about the empirical study of small firms' role?
Look at the last passage ,which talks about how empirical knowledge about small firms has been generated .

the conclusion of the third paragraph :
"An additional difficulty is that it is not obvious what criteria one should use to distinguish small firms from large ones. While a "small firm" is often defined as an enterprise with fewer than 500 employees, research studies of small firms use a wide variety of definitions."

So having a precise definition of small firm will help in identifying the role played by small firms .
E answers this and hence is the right choice.

A talks about the problem whereas E talks about the solution for the problem.

Regards,
Manish Khare

Press Kudos if you like this post.
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Re: GMATPREP ChallengeQ -The view has prevailed for the better   [#permalink] 08 Jul 2015, 19:17
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