RC: tough???? : GMAT Reading Comprehension (RC)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

It is currently 21 Jan 2017, 04:13
GMAT Club Tests


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.

for You

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

Your Progress

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


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.


Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

RC: tough????

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

Hide Tags

Joined: 26 Mar 2008
Posts: 98
Schools: Tuck, Duke
Followers: 1

Kudos [?]: 127 [0], given: 0

RC: tough???? [#permalink]

Show Tags

New post 06 Sep 2008, 17:34
Guys read the following passage. I find this passage as a brain eater.
took 4 mins to read and got onlu 3 right out of 9
if you want I can post the questions

Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to think of price-fixing (the determination of prices by the seller) as both “normal” and having a valuable economic function. In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not.
Moreover, those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non-socialist countries other than the United states. These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace. Were there something peculiarly efficient about the free market and inefficient about price-fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have.
Socialist industry also works within a framework of controlled prices. In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system. Economists in the United States have hailed the change as a return to the free market. But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms; rather, Soviet firms have been given the power to fix prices.
Request Expert Reply
If you have any questions
you can ask an expert
Economist GMAT Tutor Discount CodesVeritas Prep GMAT Discount CodesEMPOWERgmat Discount Codes
Joined: 12 May 2006
Posts: 185
Followers: 1

Kudos [?]: 57 [0], given: 0

Re: RC: tough???? [#permalink]

Show Tags

New post 06 Sep 2008, 20:56
Can you please post the questions as well?
Re: RC: tough????   [#permalink] 06 Sep 2008, 20:56
    Similar topics Author Replies Last post
RC tough mindsprout 1 09 Apr 2015, 12:30
RC Challenge - Tough one gmat072014 1 20 Jun 2014, 12:41
2 Tough RC Analysis Help anukrati 4 03 Aug 2013, 04:51
1 RC Strategy for tough questions DenisSh 5 17 Sep 2009, 04:27
2 Experts publish their posts in the topic Resources for tough RC? saruba 5 09 Sep 2009, 13:19
Display posts from previous: Sort by

RC: tough????

  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®.