By the early 1970s, historian Gabriel Kolko and economist George

Question

By the early 1970s, historian Gabriel Kolko and economist George Stigler had independently reached compatible conclusions about the interests served by the United States government's regulation of business during the Progressive era (1890-1915). Kolko argued that big business led the struggle for federal regulation and that regulatory legislation was motivated primarily by legislators' desire to benefit business, not, as the view dominant up until that time had held, by the desire to protect the public interest. As Stigler explained, the federal government's ability to subsidize business, to control the entry of foreign goods, and to fix prices could be used by businesses to their advantage, just as campaign contributions from businesses could be used to advantage by legislators.

There is no denying Kolko's and Stigler's basic claims. Nevertheless, businesses within an industry did not always welcome being regulated, nor did industries necessarily respond uniformly to legislators' efforts to enact regulations affecting them. All but one major railroad in 1905 opposed an expansion of the regulatory power of the Interstate Commerce Committee (ICC) of the United States Senate, and though the Hepburn Act, which granted the ICC rate-making power in the railroad industry, was passed the following year, commercial users of the railroads were divided about the passage of the act: the coal industry opposed it, the agricultural industry favored it, and the lumber industry was split.

According to the passage, scholars whose research on the Progressive era preceded that of Kolkoand Stigler subscribed to which of the following views about the federal regulation of businessduring the era?

A. Such regulation was often resisted by the businesses that would be affected by it.

B. Such regulation primarily benefited those businesses that desired it.

C. Such regulation was instigated by a wish to safeguard the public interest.

D. Such regulation was welcomed by some businesses because it lessened foreign competition.

E. Such regulation was promoted by government officials who had received campaign contributions.

The passage suggests which of the following about the Senate's Interstate Commerce Committee during the Progressive era?

A. Opposition by the major railroads prevented the expansion of the committee's regulatory powers in 1905.

B. The committee's attempts to enact regulations were successfully resisted by railroads until 1906.

C. The committee's actions in 1906 concerning railroads were viewed more favorably by the lumber industry than by the agricultural industry.

D. The scope of the committee's powers to regulate railroads was expanded by the Hepburn Act.

E. Some railroads were necessarily disadvantaged by the effects of regulations enacted by the committee in 1906.

Which of the following, if true, would most clearly call into question one of Kolko's conclusions?

A. Agriculture-industry leaders made campaign contributions to legislators on the ICC during the Progressive era.

B. In 1914 Congress passed a bill that limited the liability of automobile manufacturers for defective vehicles purchased by consumers.

C. Public clamor over unsanitary practices in the meat-packing industry pressured legislators into enacting regulations costly to the industry.

D. Federal regulators declined to pass regulations that would allow public utilities to establish rate schedules based on the amount of service used by consumers.

E. The ICC supported only two of eighteen bills during the Progressive era that would have restricted the entry of foreign goods into the United States.

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Sharing an RC question which appeared on my official mock 5

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Show Answer Question #1

Official Answer

C

Show Answer Question #2

Official Answer

D

Show Answer Question #3

Official Answer

C

Gorang · Answer

Can someone help explain Question 2? Why is b option incorrect?

mohitchowdhury · Answer

Can someone help with Question 2?

Sonket · Answer

It is nowhere mentioned that the resistance stopped in 1906. Coal industry still opposed it ( how long is not mentioned)

Nikhil17bhatt · Answer

A. Opposition by the major railroads prevented the expansion of the committee's regulatory powers in 1905.

The passage states that all but one major railroad opposed the expansion of the ICC's regulatory power in 1905, but it does not say that this opposition prevented the expansion. Therefore, this option is incorrect.

B. The committee's attempts to enact regulations were successfully resisted by railroads until 1906.

The passage does not provide information about successful resistance by the railroads until 1906. It only mentions the opposition in 1905 and the passage of the Hepburn Act in 1906. Therefore, this option is incorrect.

C. The committee's actions in 1906 concerning railroads were viewed more favorably by the lumber industry than by the agricultural industry.

The passage states that the agricultural industry favored the Hepburn Act, while the lumber industry was split. This means the agricultural industry viewed the actions more favorably than the lumber industry. Therefore, this option is incorrect.

D. The scope of the committee's powers to regulate railroads was expanded by the Hepburn Act.

The passage states that the Hepburn Act granted the ICC rate-making power in the railroad industry, which indicates an expansion of the committee's regulatory powers. Therefore, this option is correct.

E. Some railroads were necessarily disadvantaged by the effects of regulations enacted by the committee in 1906.

The passage does not provide specific information about the effects of the regulations on individual railroads. Therefore, this option is incorrect.

sreelekhaN · Answer

" All but one major railroad in 1905 opposed an expansion of the regulatory power of the Interstate Commerce Committee (ICC) of the United States Senate, .... "
This line suggests an opposition by railroads, but there is no information the passage to support that this opposition was the reason the regulation didn't pass before 1906

Nadezhda1999 · Answer

Bunuel Can You please explain the answer for questions 3, why it is not E? In the text it is stated that "the federal government's ability to subsidize business, to control the entry of foreign goods, and to fix prices" yet the answer choice states that the government did not support regulations that favor business?

I was indecisive between choice C and E, how do I eliminate? Thank you

I was indecisive between choice C and E, how do I eliminate? Thank you

Divyanshu14 · Answer

Kolko concluded that legislators prioritize industries over the public.

Although option E suggests that legislators took actions less favorable to industrialists, it does not directly indicate any benefit to public welfare. On the other hand, option C explicitly highlights that the decision was influenced by public demonstrations and aimed at promoting overall public welfare.

Hope that helps!

Anonymous · Answer

Divyanshu14   Bunuel   bb   chetan2u   KarishmaB  , through the process of elimination, I narrowed it down to C and D, ultimately choosing D.

Is this answer incorrect because, although it mentions the refusal to help the public over the business, it mentions pricing and consumers, which are elements not referred in the passage?

thanks in advance!

KarishmaB · Answer

Question 1.

According to the passage, scholars whose research on the Progressive era preceded that of Kolkoand Stigler subscribed to which of the following views about the federal regulation of businessduring the era?

A. Such regulation was often resisted by the businesses that would be affected by it.

B. Such regulation primarily benefited those businesses that desired it.

C. Such regulation was instigated by a wish to safeguard the public interest.

D. Such regulation was welcomed by some businesses because it lessened foreign competition.

E. Such regulation was promoted by government officials who had received campaign contributions.

Given:
  Kolko argued that big business led the struggle for federal regulation and that regulatory legislation was motivated primarily by legislators' desire to benefit business, not, as the view dominant up until that time had held, by the desire to protect the public interest.

So before 1970s, the dominant view was that regulatory legislation in Progressive era was motivated by the desire to protect the public. That is all we know about the view at that time. Rest nothing is known so all other options are incorrect.

Answer (C)

Question 2.

The passage suggests which of the following about the Senate's Interstate Commerce Committee during the Progressive era?

A. Opposition by the major railroads prevented the expansion of the committee's regulatory powers in 1905.

B. The committee's attempts to enact regulations were successfully resisted by railroads until 1906.

C. The committee's actions in 1906 concerning railroads were viewed more favorably by the lumber industry than by the agricultural industry.

D. The scope of the committee's powers to regulate railroads was expanded by the Hepburn Act.

E. Some railroads were necessarily disadvantaged by the effects of regulations enacted by the committee in 1906.

Given:

All but one major railroad in 1905 opposed an expansion of the regulatory power of the Interstate Commerce Committee (ICC) of the United States Senate, .... "
This line suggests an opposition by railroads, but there is no information the passage to support that this opposition was the reason the regulation didn't pass before 1906

So Hepburn Act was passed and it expanded the ICC's power. Hence (D) is correct.

A. Opposition by the major railroads prevented the expansion of the committee's regulatory powers in 1905.

The expansion took place. Hence this is incorrect.

B. The committee's attempts to enact regulations were successfully resisted by railroads until 1906.

We are given that Hepburn act was passed. Hence incorrect.

C. The committee's actions in 1906 concerning railroads were viewed more favorably by the lumber industry than by the agricultural industry.

Incorrect. Agricultural industry was in favor, Lumber was split.

E. Some railroads were necessarily disadvantaged by the effects of regulations enacted by the committee in 1906.

Not given anywhere.

Answer (D)

Question 3.

Which of the following, if true, would most clearly call into question one of Kolko's conclusions?

A. Agriculture-industry leaders made campaign contributions to legislators on the ICC during the Progressive era.

B. In 1914 Congress passed a bill that limited the liability of automobile manufacturers for defective vehicles purchased by consumers.

C. Public clamor over unsanitary practices in the meat-packing industry pressured legislators into enacting regulations costly to the industry.

D. Federal regulators declined to pass regulations that would allow public utilities to establish rate schedules based on the amount of service used by consumers.

E. The ICC supported only two of eighteen bills during the Progressive era that would have restricted the entry of foreign goods into the United States.

Given: 
  Kolko argued that big business led the struggle for federal regulation and that regulatory legislation was motivated primarily by legislators' desire to benefit business, not, as the view dominant up until that time had held, by the desire to protect the public interest.   
  As Stigler explained, the federal government's ability to subsidize business, to control the entry of foreign goods, and to fix prices could be used by businesses to their advantage, just as campaign contributions from businesses could be used to advantage by legislators.

We are asked about Kolko specifically so we will focus on that though as the passage says - their conclusions were the same.

A. Agriculture-industry leaders made campaign contributions to legislators on the ICC during the Progressive era.

Stigler explains that  campaign contributions from businesses could be used to advantage by legislators. Hence it is in line with what Stigler said.

B. In 1914 Congress passed a bill that limited the liability of automobile manufacturers for defective vehicles purchased by consumers.

This is a benefit to the big business, hence in line with what Kolko said.

C. Public clamor over unsanitary practices in the meat-packing industry pressured legislators into enacting regulations costly to the industry.

This is contrary to what Kolko said. The legislations were meant to benefit business as per Kolko but this legislation harmed business (costly to it). Hence answer.

D. Federal regulators declined to pass regulations that would allow public utilities to establish rate schedules based on the amount of service used by consumers.

Public utilities are out of scope. We are discussing big businesses only. So whether it benefited the public utility or consumers is irrelevant.

E. The ICC supported only two of eighteen bills during the Progressive era that would have restricted the entry of foreign goods into the United States.

This option talks about the degree of benefit ICC provided to the businesses. It supported 2 bills which benefitted the businesses. What it did to the other 16 bills, we don't know. Perhaps it refrained from supporting or opposing. Perhaps the 16 bills were so egregious that they could not support them. We don't know. This option does not show harm to the business. It shows a small benefit only.

Answer (C)

DonBosco7 · Answer

This is a tough passage 🥵

PeachSnapple1 · Answer

Assuming you were considering only A, B, and D (as C and E are clearly so wrong). A and B actually share a logic trap - they try to confuse you between correlation and causation. Note that the passage only gives you two events (though seemingly looks like one might have caused the other): passage of the Hepburn Act in 1906 and the opposition of major railroad companies in 1905. One would assume that the protest in 1905 prevented the passage of the Hepburn Act in 1905 (as we know that the Act did not pass until 1906). Well, we can't be sure about that - may be it was the case, but maybe it was just a coincidence (maybe something happened in 1905 that actually prevented the Hepburn Act being implemented that year, i.e. an alien invasion)

Choice D, however, is correct because the passage explicitly states (...which grants...). So we know for a fact that the Hepburn Act gave the ICC new power.

Again, A and B are very good traps. Gotta appreciate a well-written question when you see one.

mohitchowdhury

Can someone help with Question 2?

Choice D, however, is correct because the passage explicitly states (...which   grants  ...). So we know for a fact that the Hepburn Act gave the ICC new power.

Again, A and B are very good traps. Gotta appreciate a well-written question when you see one.

By the early 1970s, historian Gabriel Kolko and economist George

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GMAT Reading Comprehension (RC) Questions

By the early 1970s, historian Gabriel Kolko and economist George

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