Economic growth involves both benefits and costs. The desirability of

Question

Economic growth involves both benefits and costs. The desirability of increasing production has frequently been challenged in recent years, and some have even maintained that economic growth is merely a quantitative enlargement that has no human meaning or value. However, economic growth is an increase in the capacity to produce goods and services that people want. Since the product of economic growth can be measured by its value to someone, it is important to ask whose standard of valuation counts.

In the United States, the value of a product is what purchasers pay for it. This is determined by the purchasers’ preferences combined with conditions of supply, which in turn reflect various other factors, such as natural and technological circumstances at any given time and the preferences of those who supply capital and labor. The value by which we measure a product synthesizes all these factors. Gross National Product (GNP) is the market value of the nation’s total output of goods and services.

Gross National Product is not a perfect measure of all the activities involved in economic output. It does not account for deteriorations or improvements in the environment, even when they are incidental results of the production process. On the other hand, it does not count as “product” many benefits provided as side effects of the economic process; it does not include productive but unpaid work (such as that done by a homemaker); and it does not reckon with such other factors as the burdensomeness of work, the length of the work week, and so forth.

Nonetheless, the GNP concept makes an important contribution to our understanding of how the economy is working. While it is not a complete measure of economic productivity and even less so of “welfare,” the level and rate of increase of the GNP are clearly and positively associated with what most people throughout the world see as an improvement in the quality of life. In the long run, the same factors result in a growing GNP and in other social benefits: size and competence of population, state of knowledge, amount of capital, and the effectiveness with which these are combined and utilized.    1 
 1. The main purpose of the passage is to

A. define the limitations of using GNP to measure the nation’s wellbeing.
B. contrast the American and the European GNPs.
C. argue for the value of increased economic output.
D. explain the disadvantages of measuring the quality of life using a scale of material affluence.
E. define Gross National Product.

2 
 2. The rhetorical purpose of the third paragraph of the passage is to

I. anticipate objections to what the GNP fails to take into account.
II. cite examples of “products” the GNP ought to include.
III. develop the definition of paragraph two with specific details.

A. I only
B. II only
C. III only
D. I and II only
E. I, II, and III

3 
 3. We can infer from the passage that of the following, the factor that does NOT influence the growth of the GNP is

A. the condition of the population.
B. a dependence on spiritual values.
C. the capital available in the country.
D. knowledge related to production of goods and services.
E. the efficiency of the production process.

4 
 4. A critic of the limitations of the measurements of the GNP might cite its failure to consider all of the following EXCEPT

A. the steady increase in American workers’ leisure time.
B. cooperative baby-sitting projects among parents with young children.
C. the widespread existence of chemicals in American rivers.
D. the value of the time a salaried stock broker spends on research.
E. the valuation of family household management.

RC Butler 2022  -  Practice Two RC Passages Everyday.   
Passage # 173 Date: 29-Apr-2022
 This question is a part of RC Butler 2022 .  Click here for Details

Source: Cliffs Test Prep

khanna05 · Answer

Can someone explain why D should be the correct answer for Ques 4?

Sajjad1994 · Answer

Official Explanation

4. A critic of the limitations of the measurements of the GNP might cite its failure to consider all of the following EXCEPT

Difficulty Level:   Hard

Explanation

The GNP does not include  “productive but unpaid work.”  But a salaried stock broker would be paid for time spent doing research.

Answer: D

shreya2512 · Answer

Sajjad1994  why d over a in q2?

Sajjad1994 · Answer

Official Explanation

2. The rhetorical purpose of the third paragraph of the passage is to

Explanation

The rhetorical purpose is its function in the development of the argument. Though some believe that the GNP ought to include the work described in the third paragraph, the author takes no stand. In any case, statement II is not a rhetorical purpose. Statement III is inaccurate.

Answer: A

nath123! · Answer

Can someone please explain quest1

Sajjad1994 · Answer

Official Explanation

1. The main purpose of the passage is to

Difficulty Level:   750

Explanation

Though parts of the passage would support the ideas of A, C, or D, the best answer here is E. In questions about the  “purpose”  of a passage, the best answers apply to almost all of the excerpt, not to just one paragraph.

A.  While the passage mentions some limitations of GNP as a measure of economic output, this is not the main purpose of the passage. The primary focus is on discussing the value of economic growth and how it relates to the quality of life, rather than solely defining the limitations of GNP.

B.  The passage does not compare or contrast American and European GNPs. It talks about the value of economic growth and its relationship with the quality of life, rather than comparing different regions' GNPs.

C.  also covers up a part of the passage.

D.  The passage does touch upon limitations of using GNP as a measure of economic output, but it doesn't extensively discuss the disadvantages of measuring the quality of life using material affluence. The main focus is on discussing the value of economic growth and its impact on the quality of life.

Answer: E

tanishapriya96 · Answer

Hi, Can anyone explain Q4. I did not understood the Question stem.

Amrita01 · Answer

PLEASE CLARIFY WHETHER MY REASONING IS CORRECT ON QUESTION 4; IT IS SAID IN THE PASSAGE THAT " It does not account for deteriorations or improvements in the environment, even when they are incidental results of the production process.; it does not include productive but unpaid work (such as that done by a homemaker)"

OPTION A IS WRONG SINCE GNP DOESNT TAKES INTO ACCOUNT THE LENGTH OF WORK ETC.

NOT B ( PRODUCTIVE BUT UNPAID )

NOT C (DOESN'T CARE ABOUT EFFECT ON ENVIRONMENT)

THE CORRECT ANSWER IS D BECAUSE THE STOCK BROKER GETS PAID(HE COULD ONLY MAKE THE RIGHT DECISIONS AFTER SPENDING ENOUGH TIME ON RESEARCH)

NOT E (SAME AS B)

Kaichi · Answer

Got everything right but the first question…. Was fighting hard between C/E.

Tough RC but well-written.

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Economic growth involves both benefits and costs. The desirability of

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GMAT Reading Comprehension (RC) Questions

Economic growth involves both benefits and costs. The desirability of

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