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Although the development of new infrastructure (such public facilities

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Although the development of new infrastructure (such public facilities  [#permalink]

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New post 02 Feb 2020, 11:05
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Although the development of new infrastructure (such public facilities as power plants, schools, and bridges) is usually determined by governmental planning, sometimes this development can be planned more flexibly and realistically by private investors who anticipate profit from the collection of user fees. Such profits can contribute to the financing of more infrastructure if demand proves great enough, whereas the reluctance of developers to invest in such projects can signal that additional infrastructure is not needed. During the economic boom of the 1980's, for example, the state of Virginia authorized private developers to build a $300 million toll road. These developers obtained the needed tight-of-way from property owners, but by 1993they still had not raised the necessary financing. The unwillingness of investors to finance this project does not negate the viability of privately financed roads; rather, it illustrates a virtue of private financing. If a road appears unlikely to attract enough future traffic to pay for the road, then it should not be built

1. The primary purpose of the passage is to
A. build a case for increasing the development of new infrastructure
B. suggest the types of infrastructure most appropriate for private financing
C. explain the challenges of privately financed infrastructure developments using an example
D. advocate an alternative to government financing of infrastructure
E. describe how privately developed infrastructure may or may not find necessary financing




2. The passage implies that the "governmental planning" (mentioned in first sentence) may lead to which of the following problems?
A. Improper use of profits derived from user fees
B. Unduly slow development of necessary new infrastructure
C. Unrealistic decisions about developing new infrastructure
D. Incorrect predictions about profits to be gained from user fees
E. Obstruction of private financing for the development of new infrastructure



3. According to the passage, which of the following is true of the $300 million toll road?
A. After it was built, it attracted too little traffic to pay for its construction.
B. It was financed partly by the state of Virginia and partly by private developers.
C. Its development was authorized during an economic boom.
D. The private developers faced difficulty in getting approvals from local residents as late as 1993.
E. It is a poor example to illustrate a virtue of private financing.



4. Which of the following is most likely to occur if a privately financed bridge that proved to be profitable failed after a number of years to meet the demands of traffic?
A. Private developers who financed the bridge would rely on governmental authorities to develop new infrastructure.
B. User fees would be decreased to attract more traffic to the bridge.
C. Profits generated by user fees would be used to help finance the construction of new infrastructure to alleviate the traffic problem.
D. The success of the project would be jeopardized by public dissatisfaction with the infrastructure developed.
E. Governmental authorities would be reluctant to rely on private contractors to develop a new bridge.



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Re: Although the development of new infrastructure (such public facilities  [#permalink]

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New post 04 Feb 2020, 12:04
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I think 4 should be C based off of this line in the passage:

"profits can contribute to the financing of more infrastructure if demand proves great enough"
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Re: Although the development of new infrastructure (such public facilities  [#permalink]

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New post 12 Feb 2020, 10:58
martinste wrote:
I think 4 should be C based off of this line in the passage:

"profits can contribute to the financing of more infrastructure if demand proves great enough"



I agree on this ,.. Any comments on this ??
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Re: Although the development of new infrastructure (such public facilities  [#permalink]

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New post 20 Feb 2020, 20:43
Official answers:
1. OA: D
The passage advocates infrastructure financed by private investors and discusses ways in which this could operate.

2. OA: C

The scope lies in the sentence “...development can be planned more flexibly and realistically by private investors...” which suggests that governmental planning may not be realistic and flexible at times.

3. OA: C
The proof for option C lies here “During the economic boom of the 1980's, for example...”

4. OA: E
The passage as a whole advocates the use of private developers and investors to develop new infrastructure. The premise the author uses is that a project that is bound to be unviable would not be constructed because private investors would not be interested in such an endeavor. And this he proposes is a great virtue of private development. If therefore it were found that a privately developed project is unviable, governmental authorities would stop letting private developers take up infrastructural development.
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Re: Although the development of new infrastructure (such public facilities  [#permalink]

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New post 25 Feb 2020, 11:47
Would like to question #2.

I narrowed it to B,C, E. It says " development can be planned more flexibly and realistically". I could in one way imply that as that government planning already develop flexibly and realistically, it's just that investors do it 'more,' or better than government. Therefore, the government is already flexible and realistic, but investors to it to a better degree. So, that doesn't necessarily mean they are 'slow' in B, or 'unrealistic' in C, so I knocked those out and chose E by POE.


Can anyone explain why my logic that government already was flexible and realistic, but that investors can be plan 'more' flexibly and realistically, and essentially to a better degree? Thanks
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Re: Although the development of new infrastructure (such public facilities  [#permalink]

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New post 07 Mar 2020, 07:05
Quality of the question is very poor
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Re: Although the development of new infrastructure (such public facilities   [#permalink] 07 Mar 2020, 07:05

Although the development of new infrastructure (such public facilities

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