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

It is currently 30 Aug 2014, 12:22

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

Passage 6 (6/63) In the eighteenth century, Japan's feudal

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Verbal Forum Moderator
Verbal Forum Moderator
avatar
Joined: 31 Jan 2010
Posts: 500
WE 1: 4 years Tech
Followers: 9

Kudos [?]: 72 [0], given: 149

GMAT Tests User
Passage 6 (6/63) In the eighteenth century, Japan's feudal [#permalink] New post 22 Dec 2010, 04:13
Passage 6 (6/63)
In the eighteenth century, Japan’s feudal overlords, from the shogun to the humblest samurai, found themselves under financial stress. In part, this stress can be attributed to the overlords’ failure to adjust to a rapidly expanding economy, but the stress was also due to factors beyond the overlords’ control. Concentration of the samurai in castle-towns had acted as a stimulus to trade. Commercial efficiency, in turn, had put temptations in the way of buyers. Since most samurai had been reduced to idleness by years of peace, encouraged to engage in scholarship and martial exercises or to perform administrative tasks that took little time, it is not surprising that their tastes and habits grew expensive. Overlords’ income, despite the increase in rice production among their tenant farmers, failed to keep pace with their expenses. Although shortfalls in overlords’ income resulted almost as much from laxity among their tax collectors (the nearly inevitable outcome of hereditary office-holding) as from their higher standards of living, a misfortune like a fire or flood, bringing an increase in expenses or a drop in revenue, could put a domain in debt to the city rice-brokers who handled its finances. Once in debt, neither the individual samurai nor the shogun himself found it easy to recover.
It was difficult for individual samurai overlords to increase their income because the amount of rice that farmers could be made to pay in taxes was not unlimited, and since the income of Japan’s central government consisted in part of taxes collected by the shogun from his huge domain, the government too was constrained. Therefore, the Tokugawa shoguns began to look to other sources for revenue. Cash profits from government-owned mines were already on the decline because the most easily worked deposits of silver and gold had been exhausted, although debasement of the coinage had compensated for the loss. Opening up new farmland was a possibility, but most of what was suitable had already been exploited and further reclamation was technically unfeasible. Direct taxation of the samurai themselves would be politically dangerous. This left the shoguns only commerce as a potential source of government income.
Most of the country’s wealth, or so it seemed, was finding its way into the hands of city merchants. It appeared reasonable that they should contribute part of that revenue to ease the shogun’s burden of financing the state. A means of obtaining such revenue was soon found by levying forced loans, known as goyo-kin; although these were not taxes in the strict sense, since they were irregular in timing and arbitrary in amount, they were high in yield. Unfortunately, they pushed up prices. Thus, regrettably, the Tokugawa shoguns’ search for solvency for the government made it increasingly difficult for individual Japanese who lived on fixed stipends to make ends meet.
According to the passage, the major reason for the financial problems experienced by Japan’s feudal overlords in the eighteenth century was that
(A) spending had outdistanced income
(B) trade had fallen off
(C) profits from mining had declined
(D) the coinage had been sharply debased
(E) the samurai had concentrated in castle-towns
Why Not E?
1000 \sqrt{}Rc
_________________

My Post Invites Discussions not answers
Try to give back something to the Forum.I want your explanations, right now !
Please let me know your opinion about the Chandigarh Gmat Centrehttp://gmatclub.com/forum/gmat-experience-at-chandigarh-india-centre-111830.html

Senior Manager
Senior Manager
avatar
Status: swimming against the current
Joined: 24 Jul 2009
Posts: 252
Location: Chennai, India
Followers: 4

Kudos [?]: 43 [0], given: 30

GMAT Tests User
Re: 1000 RC [#permalink] New post 24 Dec 2010, 04:23
mundasingh123 wrote:
Passage 6 (6/63)
In the eighteenth century, Japan’s feudal overlords, from the shogun to the humblest samurai, found themselves under financial stress. In part, this stress can be attributed to the overlords’ failure to adjust to a rapidly expanding economy, but the stress was also due to factors beyond the overlords’ control. Concentration of the samurai in castle-towns had acted as a stimulus to trade. Commercial efficiency, in turn, had put temptations in the way of buyers. Since most samurai had been reduced to idleness by years of peace, encouraged to engage in scholarship and martial exercises or to perform administrative tasks that took little time, it is not surprising that their tastes and habits grew expensive. Overlords’ income, despite the increase in rice production among their tenant farmers, failed to keep pace with their expenses. Although shortfalls in overlords’ income resulted almost as much from laxity among their tax collectors (the nearly inevitable outcome of hereditary office-holding) as from their higher standards of living, a misfortune like a fire or flood, bringing an increase in expenses or a drop in revenue, could put a domain in debt to the city rice-brokers who handled its finances. Once in debt, neither the individual samurai nor the shogun himself found it easy to recover.
It was difficult for individual samurai overlords to increase their income because the amount of rice that farmers could be made to pay in taxes was not unlimited, and since the income of Japan’s central government consisted in part of taxes collected by the shogun from his huge domain, the government too was constrained. Therefore, the Tokugawa shoguns began to look to other sources for revenue. Cash profits from government-owned mines were already on the decline because the most easily worked deposits of silver and gold had been exhausted, although debasement of the coinage had compensated for the loss. Opening up new farmland was a possibility, but most of what was suitable had already been exploited and further reclamation was technically unfeasible. Direct taxation of the samurai themselves would be politically dangerous. This left the shoguns only commerce as a potential source of government income.
Most of the country’s wealth, or so it seemed, was finding its way into the hands of city merchants. It appeared reasonable that they should contribute part of that revenue to ease the shogun’s burden of financing the state. A means of obtaining such revenue was soon found by levying forced loans, known as goyo-kin; although these were not taxes in the strict sense, since they were irregular in timing and arbitrary in amount, they were high in yield. Unfortunately, they pushed up prices. Thus, regrettably, the Tokugawa shoguns’ search for solvency for the government made it increasingly difficult for individual Japanese who lived on fixed stipends to make ends meet.
According to the passage, the major reason for the financial problems experienced by Japan’s feudal overlords in the eighteenth century was that
(A) spending had outdistanced income
(B) trade had fallen off
(C) profits from mining had declined
(D) the coinage had been sharply debased
(E) the samurai had concentrated in castle-towns
Why Not E?
1000 \sqrt{}Rc


Samurai were put on guard in castle towns. This is spoken only in part in the entire passage. If you skim the passage at every instance it proved that expense outstripped income.

The one bolded suggests that their income exceeded expenditure.
_________________

Gonna make it this time

Verbal Forum Moderator
Verbal Forum Moderator
avatar
Joined: 31 Jan 2010
Posts: 500
WE 1: 4 years Tech
Followers: 9

Kudos [?]: 72 [0], given: 149

GMAT Tests User
Re: 1000 RC [#permalink] New post 24 Dec 2010, 04:33
mailnavin1 wrote:
mundasingh123 wrote:
Passage 6 (6/63)
In the eighteenth century, Japan’s feudal overlords, from the shogun to the humblest samurai, found themselves under financial stress. In part, this stress can be attributed to the overlords’ failure to adjust to a rapidly expanding economy, but the stress was also due to factors beyond the overlords’ control. Concentration of the samurai in castle-towns had acted as a stimulus to trade. Commercial efficiency, in turn, had put temptations in the way of buyers. Since most samurai had been reduced to idleness by years of peace, encouraged to engage in scholarship and martial exercises or to perform administrative tasks that took little time, it is not surprising that their tastes and habits grew expensive. Overlords’ income, despite the increase in rice production among their tenant farmers, failed to keep pace with their expenses. Although shortfalls in overlords’ income resulted almost as much from laxity among their tax collectors (the nearly inevitable outcome of hereditary office-holding) as from their higher standards of living, a misfortune like a fire or flood, bringing an increase in expenses or a drop in revenue, could put a domain in debt to the city rice-brokers who handled its finances. Once in debt, neither the individual samurai nor the shogun himself found it easy to recover.
Isnt
It was difficult for individual samurai overlords to increase their income because the amount of rice that farmers could be made to pay in taxes was not unlimited, and since the income of Japan’s central government consisted in part of taxes collected by the shogun from his huge domain, the government too was constrained. Therefore, the Tokugawa shoguns began to look to other sources for revenue. Cash profits from government-owned mines were already on the decline because the most easily worked deposits of silver and gold had been exhausted, although debasement of the coinage had compensated for the loss. Opening up new farmland was a possibility, but most of what was suitable had already been exploited and further reclamation was technically unfeasible. Direct taxation of the samurai themselves would be politically dangerous. This left the shoguns only commerce as a potential source of government income.
Most of the country’s wealth, or so it seemed, was finding its way into the hands of city merchants. It appeared reasonable that they should contribute part of that revenue to ease the shogun’s burden of financing the state. A means of obtaining such revenue was soon found by levying forced loans, known as goyo-kin; although these were not taxes in the strict sense, since they were irregular in timing and arbitrary in amount, they were high in yield. Unfortunately, they pushed up prices. Thus, regrettably, the Tokugawa shoguns’ search for solvency for the government made it increasingly difficult for individual Japanese who lived on fixed stipends to make ends meet.
According to the passage, the major reason for the financial problems experienced by Japan’s feudal overlords in the eighteenth century was that
(A) spending had outdistanced income
(B) trade had fallen off
(C) profits from mining had declined
(D) the coinage had been sharply debased
(E) the samurai had concentrated in castle-towns
Why Not E?
1000 \sqrt{}Rc


Samurai were put on guard in castle towns. This is spoken only in part in the entire passage. If you skim the passage at every instance it proved that expense outstripped income.

The one bolded suggests that their income exceeded expenditure.

The questions asks for the major reason.The expenses outweighed the expenses because the samurai had concentrated in castle towns.
_________________

My Post Invites Discussions not answers
Try to give back something to the Forum.I want your explanations, right now !
Please let me know your opinion about the Chandigarh Gmat Centrehttp://gmatclub.com/forum/gmat-experience-at-chandigarh-india-centre-111830.html

Senior Manager
Senior Manager
avatar
Status: swimming against the current
Joined: 24 Jul 2009
Posts: 252
Location: Chennai, India
Followers: 4

Kudos [?]: 43 [0], given: 30

GMAT Tests User
Re: 1000 RC [#permalink] New post 24 Dec 2010, 04:36
see the passages says one factor is "failure to adjust to a rapidly expanding economy" and due to many other factors. Samurai concentration is one among the many other factors
_________________

Gonna make it this time

Verbal Forum Moderator
Verbal Forum Moderator
avatar
Joined: 31 Jan 2010
Posts: 500
WE 1: 4 years Tech
Followers: 9

Kudos [?]: 72 [0], given: 149

GMAT Tests User
Re: 1000 RC [#permalink] New post 24 Dec 2010, 04:49
mailnavin1 wrote:
see the passages says one factor is "failure to adjust to a rapidly expanding economy" and due to many other factors. Samurai concentration is one among the many other factors

So going by what you said above (quoted) , that the expenses outdistanced income is a result of the factors that you mentioned above.
_________________

My Post Invites Discussions not answers
Try to give back something to the Forum.I want your explanations, right now !
Please let me know your opinion about the Chandigarh Gmat Centrehttp://gmatclub.com/forum/gmat-experience-at-chandigarh-india-centre-111830.html

Re: 1000 RC   [#permalink] 24 Dec 2010, 04:49
    Similar topics Author Replies Last post
Similar
Topics:
In the eighteenth century, Japan’s feudal overlords, from th nsp007 7 07 May 2010, 23:26
In the eighteenth century, Japan's feudal overlords, from adiraju 5 08 Jul 2009, 07:15
In the eighteenth century, Japan�s feudal overlords, from atomy 1 03 Jun 2009, 05:07
RC= Japan’s feudal overlords vksunder 1 21 Jun 2008, 11:08
1 the end of the eighteenth century saw the emergence of sarahtw 8 21 Mar 2005, 11:41
Display posts from previous: Sort by

Passage 6 (6/63) In the eighteenth century, Japan's feudal

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| 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®.