The decline of the United States smokestack industries reflected in th

1. The primary purpose of the passage is to

(A) attack two alternative approaches to a problem-
We have not been presented 2 approaches to the problem (America's recovery) but only one- entrepreneurship

(B) criticize a particular point of view-
An author's veiw has been provided in second para and third para which has been criticized in 4th para and also in 5th para

(C) explain the causes of a phenomenon-
Not clear whether the phenomenon refers to recovery or entrepreneurship but causes are not stated anyway

(D) present the positive and negative aspects of a proposed solution to a problem
THe positive and negative aspects of entrepreneurship have not been presented. Gilder's views are not considered negative aspects of entrepreneurship but rather mentioned to state his views on an obstruct in the economy for entrepreneurship to work succeffully

(E) detail the strengths of a particular set of policies
The strength of the policy is not the main purpose and nor are strengths presented even though author is in favour of industrial policy

Ans B

2. The author's attitude toward Gilder's point of view can be best described as

(A) antagonistic
Yes as we can clearly see the author has individually criticised Gilder's views stated in 2nd para in the the third para.

(B) bitter
The author has not expressed anger / hurt towards Gilder

(C) detached
The author has not separated himself from Gilder's pov

(D) tolerant
This is totally opposite

(E) apologetic
He is not sorry for Gilder's pov

Ans A

3. Which of the following best describes the organization of the fourth paragraph?

(A) Three specific examples used in an argument in the third paragraph are substantiated-
The author is against those examples not in favour so it cannot be substantiated

(B) Three pieces of newly discovered evidence in support of an argument in the third para¬graph are discussed.
Author is against Gilder's views not supportive of them

(C) Three interpretations of data presented in the third paragraph are considered.
Author is against Gilder's views not considering (think carefully) the existing view

(D) Three criticisms of an argument presented in the third paragraph are refuted
Criticisms are not refuted rather criticism is presented

(E) Three points of an argument presented in the third paragraph are specifically opposed-
All three examples sated in the previous para have been opposed

Ans E

4. The author of the passage implies that George Gilder would regard all of the following as obstacles to the operation of "unfettered capitalism" (Highlighted) EXCEPT

(A) competition between United States and foreign manufacturers for United States markets
"unfettered capitalism—and the innovation it fosters—is the only sure path to productivity" and since copetition is a form of innovation , hence can be used to fister capitalism

(B) enforcement of federal civil rights legislation
"Needless regulation is strangling America's entrepreneur" indicates this

(C) standards for clean air that improve air quality around industrial sites
Obstacle because according to Gilder industrial policy is a folly and this choice would be a consideration of industrial policy

(D) a ban on exposure of unprotected workers to hazardous materials like asbestos
Obstacle because according to Gilder industrial policy is a folly and this choice would be a consideration of industrial policy

(E) widespread representation of skilled workers by collective bargaining units
Obstacle because according to Gilder industrial policy is a folly and this choice would be a consideration of industrial policy

Ans A

5. According to the author of the passage, which or the following is true of the tax incentives that some communities use to induct businesses to move there?

(A) They discourage foreign businesses from locating in those communities.
Nothing is mentioned regarding foreign businesses nor can we say they are discouraged

(B) They result in an economic decline in those communities.
No economic decline was resulted

(C) They are a major influence on business location decisions.
"Yet virtually all the relevant research finds that taxes are a relatively minor consideration in business location decisions" is directly stated

(D) Their most noticeable effect is a geographical shift of a fixed number of jobs from one community to another.
"Even when businesses relocate to a community offering such incentives, the same jobs are merely moved from one place to another, with no net increase in job creation or economic growth" is directly stated

(E) Their impact on local taxpayers is detrimental, as individuals, must bear the cost of luring business to the community.
We cannot infer this from the passage

Ans D

6. The author uses the phrase "adhoc policies" in lines (Highlighted) as a contrast to which of the following phrases as it is used in the passage?

(A) "set of industrial policies" (Text in Red)
These are not a part of comparison

(B) "tax and trade policies" (Text in Red)
They are a part of industrial policies and this is not the comparison given

(C) "explicit and coordinated policies" (Text in Red)
"Rather the issue is whether we will develop a set of explicit and coordinated policies to strengthen our domestic economy and our competitive position in the world economy or whether we will glorify the free market while implementing adhoc policies and watch our position deteriorate even further"- comparison is b/w adhoc vs explicit policies

(D) "competitive position" (Text in Red)
Policies cannot be compared to positioning

(E) "free market" (Text in Red)
Policies are not compared to a concept of market

Ans C

7. The author of the passage makes which of the following assumptions in his argument against reducing workers' wages?

(A) Workers do not deposit money they earn as wages in savings accounts.
Even if this is not true conclusion will hold

(B) When workers' wages are sufficiently high, they are more productive on the job.
Even if this is not true conclusion will hold

(C) If their wages were reduced, workers would be forced to obtain loans to finance major purchases.
Even if this is not true conclusion will hold

(D) There is a correlation between the amount of workers' wages and the demand for consumer goods.
By concluding "reducing workers' wages will result in insufficient demand for the autos, homes, washing machines and other goods whose production keeps our economy healthy" they are assuming D

(E) Reducing workers' wages is an attack on the fundamental benefits achieved by collective bargaining rights.
Even if this is not true conclusion will hold

Ans D

1. The primary purpose of the passage is to

(A) attack two alternative approaches to a problem
Option A is incorrect because the author appears to criticize the measures suggested by GG.

(B) criticize a particular point of view
Option B is correct because the tone of the passage suggests that the author is critiquing GG’s point of view and is taking a stance on the viewpoint while offering his counterarguments.

(C) explain the causes of a phenomenon
Option C is incorrect because the author has not presented any reasons for the problem mentioned.

(D) present the positive and negative aspects of a proposed solution to a problem
Option D is incorrect because the author has not mentioned the pros of the solution proposed by GG. The author has explained the cons only.

(E) detail the strengths of a particular set of policies
Option E is incorrect because the author has neither mentioned the details of a particular set of policies nor did he mention their strengths. He has raised a question that whether we will develop a set of explicit and coordinated policies to strengthen our domestic economy and our competitive position in the world economy.

2. The author's attitude toward Gilder's point of view can be best described as
The author’s attitude toward GG's point of view appears to be antagonistic because the author disagrees with GG’s prescription for America's economic problems and challenges his arguments. Answer A is correct.

3. Which of the following best describes the organization of the fourth paragraph?
Option E is correct because the fourth paragraph specifically opposes the three points (GG’s standard solution for USA’s economic ills) presented in the third paragraph.

(A) Three specific examples used in an argument in the third paragraph are substantiated.
Option A is incorrect because the 4th paragraph is not substantiating the three points of an argument presented in the 3rd paragraph rather it is specifically opposing them.

(B) Three pieces of newly discovered evidence in support of an argument in the third paragraph are discussed.
Option B is incorrect because no such evidence has been presented.

(C) Three interpretations of data presented in the third paragraph are considered.
Option C is incorrect because the author is not interpreting the data presented in the third paragraph.

(D) Three criticisms of an argument presented in the third paragraph are refuted.
Option D is incorrect because it is the other way round. The three points presented in the argument in third paragraph are being refuted in the fourth paragraph.


4. The author of the passage implies that George Gilder would regard all of the following as obstacles to the operation of "unfettered capitalism" (Highlighted) EXCEPT
The author in the fourth paragraph mentions that the nation's civil rights laws (B), environmental and occupational safety regulations (C and D), collective bargaining rights (E), and other regulations that protect many of the fundamental benefits to which we have rightly become accustomed. Yet these are precisely the areas where the campaign for deregulation has been most vicious. Therefore, Option A “competition between United States and foreign manufacturers for United States markets” is correct because this will foster innovation as suggested by GG.

5. According to the author of the passage, which of the following is true of the tax incentives that some communities use to induct businesses to move there?
(A) They discourage foreign businesses from locating in those communities.
Rather it is the other way round, tax incentives encourage businesses to relocate to save on taxes.

(B) They result in an economic decline in those communities.
Option B is incorrect because those communities gains from such relocations however, there is no economic growth overall for the nation.

(C) They are a major influence on business location decisions.
Option C is incorrect because the author clearly mentions that all the relevant research finds that taxes are a relatively minor consideration in business location decisions.

(D) Their most noticeable effect is a geographical shift of a fixed number of jobs from one community to another.
In the fourth paragraph the author mentions that even when businesses relocate to a community offering such incentives, the same jobs are merely moved from one place to another, with no net increase in job creation or economic growth. Therefore, option D is correct.

(E) Their impact on local taxpayers is detrimental, as individuals, must bear the cost of luring business to the community.
Option E is incorrect because no such thing is mentioned in the passage.

6. The author uses the phrase "adhoc policies" in lines (Highlighted) as a contrast to which of the following phrases as it is used in the passage?
The author uses the phrase "adhoc policies" as a contrast to a set of “explicit and coordinated policies”. This is evident because the author mentions in the last paragraph that the question is – “whether we will develop a set of explicit and coordinated policies to strengthen our domestic economy and our competitive position in the world economy” or “whether we will glorify the free market while implementing adhoc policies and watch our position deteriorate even further”. Option C is correct.

7. The author of the passage makes which of the following assumptions in his argument against reducing workers' wages?

(A) Workers do not deposit money they earn as wages in savings accounts.
Option A is incorrect because even if above statement is true, we are not sure if the workers spend the money in purchasing consumer goods. They might be investing it in some other schemes other than savings accounts.

(B) When workers' wages are sufficiently high, they are more productive on the job.
Option B is incorrect because it has no relevance to the authors viewpoint.

(C) If their wages were reduced, workers would be forced to obtain loans to finance major purchases.
Option C is incorrect because this point seems to be too remote. It may happen that the workers do not carry out any major purchases dues to reduced wages.

(D) There is a correlation between the amount of workers' wages and the demand for consumer goods.
In the fourth paragraph, the author contends the point of GG (American labor is simply pricing itself out of the market.) by mentioning that the reducing workers' wages will result in insufficient demand for the autos, homes, washing machines and other goods whose production keeps our economy healthy. For this viewpoint of author to hold, he must have assumed that there is a correlation between the amount of workers' wages and the demand for consumer goods. Therefore, Option D is correct.

(E) Reducing workers' wages is an attack on the fundamental benefits achieved by collective bargaining rights.
Option E is incorrect because this point is not relevant to the author’s viewpoint presented above.

1. The primary purpose of the passage is to

(A) attack two alternative approaches to a problem (True)
(B) criticize a particular point of view
(C) explain the causes of a phenomenon
(D) present the positive and negative aspects of a proposed solution to a problem
(E) detail the strengths of a particular set of policies

For Gilder, government intervention in the form of a national industrial policy is pure folly, and unfettered capitalism—and the innovation it fosters—is the only sure path to productivity.

Gilder's diagnosis unfolds as follows. Taxes are so high that business is discouraged from establishing itself in communities in the United States.

2. The author's attitude toward Gilder's point of view can be best described as

(A) antagonistic
(B) bitter
(C) detached
(D) tolerant (True)
(E) apologetic

It is evident however, that the United States has and will continue to have (Gilder notwithstanding).

3. Which of the following best describes the organization of the fourth paragraph?

(A) Three specific examples used in an argument in the third paragraph are substantiated.
(B) Three pieces of newly discovered evidence in support of an argument in the third para¬graph are discussed. (True)
(C) Three interpretations of data presented in the third paragraph are considered.
(D) Three criticisms of an argument presented in the third paragraph are refuted.
(E) Three points of an argument presented in the third paragraph are specifically opposed

( P3 discusses on 3 ideas:
Gilder once again offers us his standard prescription for our nation's economic ills, a prescription that remains as unidimensional as ever. )

4. The author of the passage implies that George Gilder would regard all of the following as obstacles to the operation of "unfettered capitalism" (Highlighted) EXCEPT

(A) competition between United States and foreign manufacturers for United States markets
(B) enforcement of federal civil rights legislation
(C) standards for clean air that improve air quality around industrial sites
(D) a ban on exposure of unprotected workers to hazardous materials like asbestos (True)
(E) widespread representation of skilled workers by collective bargaining units


4. The author of the passage implies that George Gilder would regard all of the following as obstacles to the operation of "unfettered capitalism" (Highlighted) EXCEPT

(A) competition between United States and foreign manufacturers for United States markets (mentioned)
(B) enforcement of federal civil rights legislation (mentioned)
(C) standards for clean air that improve air quality around industrial sites (mentioned)
(D) a ban on exposure of unprotected workers to hazardous materials like asbestos(True)
(E) widespread representation of skilled workers by collective bargaining units (mentioned)


5. According to the author of the passage, which or the following is true of the tax incentives that some communities use to induct businesses to move there?

(A) They discourage foreign businesses from locating in those communities.
(B) They result in an economic decline in those communities.
(C) They are a major influence on business location decisions.
(D) Their most noticeable effect is a geographical shift of a fixed number of jobs from one community to another. (True)
(E) Their impact on local taxpayers is detrimental, as individuals, must bear the cost of luring business to the community.

tax incentives to lure industry amount to little more than piracy among competing communities. Even when businesses relocate to a community offering such incentives, the same jobs are merely moved from one place to another, with no net increase in job creation or economic growth.

6. The author uses the phrase "adhoc policies" in lines (Highlighted) as a contrast to which of the following phrases as it is used in the passage?

(A) "set of industrial policies" (Text in Red)
(B) "tax and trade policies" (Text in Red)
(C) "explicit and coordinated policies" (Text in Red) - True
(D) "competitive position" (Text in Red)
(E) "free market" (Text in Red)

Rather the issue is whether we will develop a set of explicit and coordinated policies to strengthen our domestic economy and our competitive position in the world economy or whether we will glorify the free market while implementing adhoc policies and watch our position deteriorate even further.


7. The author of the passage makes which of the following assumptions in his argument against reducing workers' wages?

(A) Workers do not deposit money they earn as wages in savings accounts. (True)
(B) When workers' wages are sufficiently high, they are more productive on the job.
(C) If their wages were reduced, workers would be forced to obtain loans to finance major purchases.
(D) There is a correlation between the amount of workers' wages and the demand for consumer goods.
(E) Reducing workers' wages is an attack on the fundamental benefits achieved by collective bargaining rights.

Finally, reducing workers' wages will result in insufficient demand for the autos, homes, washing machines and other goods whose production keeps our economy healthy.
- Author assumes that workers spend their wages to buy goods

1. The primary purpose of the passage is to

P1: Question regarding Economic problem of the USA Industries competitiveness is raised
P2: George Gilder (GG) view is discussed to solve the problem view- Entrepreneurship
P3: GG 3 objections to the current problem entrepreneurship and business in general are facing
P4: Author refutes the GG 3 point that they may not have any impact on the economic problem
P5: Author mentions that industrial policy (explicit and coordinated) may solve the economic problem

(A) attack two alternative approaches to a problem ~ Incorrect, author attack only one unidirectional view presented by Gilder that "national industrial policy is pure folly,"

(B) criticize a particular point of view ~Correct, author is against the view of GG and others which ridiculed the concept of industrial policy and mention that set of industrial policies will remain.

(C) explain the causes of a phenomenon ~ Incorrect, author does not explain any causes or phenomenon in the passage.

(D) present the positive and negative aspects of a proposed solution to a problem ~ Incorrect, author does not propose a solution, author is refuting the view of GG and other regarding the industrial policies.

(E) detail the strengths of a particular set of policies ~ Incorrect, author mentions that the set of industrial policies will remains but he has not mention any detail regarding these policies. Author only mentions that why the view opposing the concept of industrial policy is wrong.

2. The author's attitude toward Gilder's point of view can be best described as

Refer to the line "In this book, Gilder once again offers us his standard prescription for our nation's economic ills, a prescription that remains as unidimensional as ever.'

(A) antagonistic ~ Correct, author clearly against the view of the Gilder, it is clear from the above line when author highlight that Gilder's point of view remain unidirectional and does not change. This view author believes will not be able to solve the economic problems. Gilder's point of view ridicules the concept of industrial policies, but as per author these set of industrial policies will continues to stay. Author is antagonistic against the Gilder's point of view.

(B) bitter ~ Between option B and A, Bitter is not the right word to choose as author has not mentioned that he is having any hatred towards the Gilder's point of view. Author is of the opinion that Gilder is having unidirectional view which as per author will not solve the economic problems.

(C) detached ~ Incorrect, author is not detached from the Gilder's point of view, in fact in the passage he tries to highlight that why his unidirectional view about the problem of economy and the concept of industrial policy is incorrect.

(D) tolerant ~ Incorrect, author is not tolerant about the Gilder's point of view, author mention that he uses standard unidimensional approach towards the economic problem and ridiculed the concept of industrial policy which the author is opposing in the passage.

(E) apologetic ~ Incorrect, author does not offer any apology to Gilder's point of view. In the fourth paragraph, author clearly refutes the Gilder's point of view about the economic problem and industrial policies.

3. Which of the following best describes the organization of the fourth paragraph?

In the 3rd paragraph George Gilder (GG) highlights 3 important points which as per him are the reason for the economic problems. These are related to taxes, regulations and labour wages. In the fourth paragraph author refutes the 3 reasons mentioned by GG and explain why they will not solve the problem of the economy.

(A) Three specific examples used in an argument in the third paragraph are substantiated. ~ Incorrect, author does not substantiated the argument presented by GG in the third paragraph. He refutes GG argument.

(B) Three pieces of newly discovered evidence in support of an argument in the third para¬graph are discussed. ~ Incorrect, author refutes GG argument and provide evidence against the argument not in it's support.

(C) Three interpretations of data presented in the third paragraph are considered. ~ Incorrect, the data presented by the author is used to refute the argument about the concept of industrial policy and solution to the problem of economy given by GG.

(D) Three criticisms of an argument presented in the third paragraph are refuted. ~ Incorrect, there is not 1 argument that is presented in the third paragraph. There are three points to the argument which are related to taxes, regulations and labour wages.

(E) Three points of an argument presented in the third paragraph are specifically opposed. ~ Correct, the three points of the argument related to taxes, regulations and labour wages were refuted by the author in the fourth paragraph.

4. The author of the passage implies that George Gilder would regard all of the following as obstacles to the operation of "unfettered capitalism" (Highlighted) EXCEPT

Refer to the line "But they do not include the nation's civil rights laws environmental and occupational safety regulations, collective bargaining rights, and other regulations that protect many of the fundamental benefits to which we have rightly become accustomed." George Gilder (GG) objected that there are needless regulation which are strangling American Entrepreneur.

(A) competition between United States and foreign manufacturers for United States markets ~ Correct, this is not mentioned as GG ignore competition as a problem, he rather argues that "dazzling entrepreneurship will restore American competitiveness in world markets".

(B) enforcement of federal civil rights legislation ~ Incorrect, this is mentioned in the above line as Nation's civil right laws

(C) standards for clean air that improve air quality around industrial sites ~ Incorrect, this is mentioned in the above line as "environmental and safety regulations"

(D) a ban on exposure of unprotected workers to hazardous materials like asbestos ~ Incorrect, this is mentioned in the above line as "environmental and safety regulations"

(E) widespread representation of skilled workers by collective bargaining units ~ Incorrect, this is mentioned in the above line as "collective bargaining rights"

5. According to the author of the passage, which or the following is true of the tax incentives that some communities use to induct businesses to move there?

Refer to the line "Furthermore, tax incentives to lure industry amount to little more than piracy among competing communities. Even when businesses relocate to a community offering such incentives, the same jobs are merely moved from one place to another, with no net increase in job creation or economic growth."

(A) They discourage foreign businesses from locating in those communities. ~ Incorrect, tax incentives are in place to attract the business foreign as well as domestic.

(B) They result in an economic decline in those communities. ~ Incorrect, there is no net increase in economic growth. But economic growth can remain constant without any decline.

(C) They are a major influence on business location decisions. ~ Incorrect, refer to the line "Yet virtually all the relevant research finds that taxes are a relatively minor consideration in business location decisions."

(D) Their most noticeable effect is a geographical shift of a fixed number of jobs from one community to another. " Correct, in the above line it is clearly mentioned that whenever business migrate from one place to another, than same set of people who were earlier working in that business move to a new location. Technically there is no new addition of workers and there is only a geographical shift of workers from one community to another.

(E) Their impact on local taxpayers is detrimental, as individuals, must bear the cost of luring business to the community. ~ Incorrect, there is no mention that there is any impact to local tax payer by attracting the business to the community.

6. The author uses the phrase "adhoc policies" in lines (Highlighted) as a contrast to which of the following phrases as it is used in the passage?

Refer to the line "Gilder and many other conservatives ridicule the concept of industrial policy. It is evident however, that the United States has and will continue to have (Gilder notwithstanding) A set of industrial policies (e.g. tax and trade policies. antitrust laws, research and development programs) .

Author mentions that we will have the industrial policies, but by developing a set of explicit and coordinated policies USA can lessen the damage done by the previous set of industrial policies and strengthen its economic position. If these policies(explicit and coordinated policies) are not developed and old set of industrial policies is in place, than with free trade and these policies the condition of the economy will further deteriorate. So these "adhoc policies" refer to the "set of industrial policies".

(A) "set of industrial policies" (Text in Red) ~ Correct, as explained above.

(B) "tax and trade policies" (Text in Red) ~ Incorrect, tax and trade policies is an example of industrial policies.

(C) "explicit and coordinated policies" (Text in Red) ~ Incorrect, these are the new policies that author wants to develop which will help the economy.

(D) "competitive position" (Text in Red) ~Incorrect, this is not relevant in the above context.

(E) "free market" (Text in Red) ~ Incorrect author mention that "free market " and set of industrial policy will deteriorate condition of the economy


7. The author of the passage makes which of the following assumptions in his argument against reducing workers' wages?

Finally, reducing workers' wages will result in insufficient demand for the autos, homes, washing machines and other goods whose production keeps our economy healthy.

(A) Workers do not deposit money they earn as wages in savings accounts. ~ Incorrect, this is not mentioned as the author's argument against reducing worker's wages.

(B) When workers' wages are sufficiently high, they are more productive on the job. Incorrect, no relation between wages and productivity is mentioned

(C) If their wages were reduced, workers would be forced to obtain loans to finance major purchases. ~ Incorrect, workers will reduce their consumption of articles, and may be save enough that they don't require to take loan.

(D) There is a correlation between the amount of workers' wages and the demand for consumer goods. ~ Correct, author mentions that when the wages of the workers are reduced than with less income in hand, the demand for goods purchased by workers will be reduced which ultimately effect the economy. There is clearly a correlation between worker's wages and demand of consumer goods.

(E) Reducing workers' wages is an attack on the fundamental benefits achieved by collective bargaining rights. ~ Incorrect, this is not mentioned as the assumption against the reducing worker's wage.

No! I am unable to see them. Have you posted any?

Hello Everyone!

OAs are revealed, OE is posted, and the competition mode is off.

There is a tough competition between Elite097 sivakumarm786 and Catman.

Catman I see great improvement in your explanations today. Following are the points earned today.

Elite097: 83

sivakumarm786 and Catman = 80

Hello Yanilcia

Welcome to GMAT Club! and welcome to GMAT Club Reading Comprehension Quiz

I received your explanation to this passage via email and hence updated this post, being a newbie your were probably not allowed to attached a file. Your score for this passage is 23/35 = 66

Good luck!

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.