In a recent article, economist Steven Landsburg argues that saving mon

Question

In a recent article, economist Steven Landsburg argues that saving money is the most helpful economic activity in which a person can engage. He even goes so far as to say that nobody in the whole world is as generous as a miser and that a miser's activities benefit all while a philanthropist's charitable donations benefit only a select few. Savings are so important to Landsburg that he advocates the government put no limits on the amount people are allowed to hold in tax free savings accounts in order to maximize savings.

Landsburg points out that no matter what a miser decides to do with her money, as long as the money is not spent, she benefits society. For example, if the miser puts her money in the bank, she is effectively bidding down interest rates, making it cheaper to borrow money. Similarly, if she stuffs the money in her mattress or vault, she is decreasing the supply of money and thus decreasing prices by lowering demand.

While Landsburg is correct that a certain amount of saving is critically important to society, he fails to note what can happen if his recommendation is taken to its logical extreme. In a society where everyone saves as much as possible and spends as little as possible, no one would buy goods produced by businesses. Trade would stagnate and bring the economy to a halt. While Landsburg is right to point out the benefits of saving, he errs in advocating a save-only society.    1 
 1. The primary purpose of the passage is to

A. argue that misers are more helpful to society than philanthropists
B. petition the government to remove any cap on the amount that people can save in tax free accounts
C. show that the recommendations of an economist can be dangerous if they are taken too far
D. examine the various ways that people can spend money
E. demonstrate that it is better to save money by putting it in the bank than to save money by stuffing it in a mattress

2 
 2. The passage suggests that Landsburg would agree with which of the following?

A. A miser who burns his money is benefiting society.
B. If everyone saves every dollar that they can, trade will be severely impaired.
C. A miser benefits society more so than anyone else.
D. Philanthropists should stop giving away their money and should spend it all instead.
E. Misers generally save money because they wish to benefit society.

3 
 3. According to Landsburg, in what way does a miser benefit society if the miser puts money in the bank?

A. The miser takes a large tax deduction.
B. The miser gives to charitable causes.
C. The miser increases interest rates so that others can also make money by saving.
D. The miser makes it cheaper for others to borrow money.
E. The miser helps employ bank workers.

4 
 4. The author of the passage argues that which of the following can be dangerous?

A. Tax breaks for saving
B. Landsburg's recommendation for saving
C. Lowering of interest rates
D. Trading of goods and services
E. Philanthropic activity

RC Butler 2021  -  Practice Two RC Questions Everyday.   
Passage # 280 Date: 15-Jul-2021
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kantapong · Answer

P1: Landsburg: Saving is important
P2: Saving benefits society
P3: err in extreme

Q1 Primary purpose
A. argue that misers are more helpful to society than philanthropists (unsupported comparison -> DROP)
B. petition the government to remove any cap on the amount that people can save in tax free accounts
C. show that the recommendations of an economist can be dangerous if they are taken too far
D. examine the various ways that people can spend money (not about spending money -> DROP)
E. demonstrate that it is better to save money by putting it in the bank than to save money by stuffing it in a mattress (unsupported comparison -> DROP)
Between B and C, B means the author supports Landsburg policy, while in C, the author supports Landsburg policy with caveat, so the answer is C.

2. The passage suggests that Landsburg would agree with which of the following?
A. A miser who burns his money is benefiting society. (YES - P2)
B. If everyone saves every dollar that they can, trade will be severely impaired. (author's stance, not Landsburg -> FALSE)
C. A miser benefits society more so than anyone else. (unsupported comparison -> FALSE)
D. Philanthropists should stop giving away their money and should spend it all instead. (out of scope -> FALSE)
E. Misers generally save money because they wish to benefit society. (no info about miser intentions -> FALSE)
Ans: A

3. According to Landsburg, in what way does a miser benefit society if the miser puts money in the bank?
(Two ways - reduce borrowing costs & reduce prices)
A. The miser takes a large tax deduction.
B. The miser gives to charitable causes.
C. The miser increases interest rates so that others can also make money by saving.
D. The miser makes it cheaper for others to borrow money. (reduce borrowing cost: YES)
E. The miser helps employ bank workers.
Ans: D

4. The author of the passage argues that which of the following can be dangerous?
(Dangerous if taken too far)
A. Tax breaks for saving (not tax breaks in general, if with limits, ok)
B. Landsburg's recommendation for saving (YES -> narrower than A -> remove any limits)
C. Lowering of interest rates (good - P2)
D. Trading of goods and services (not supported)
E. Philanthropic activity (not supported)
Ans: B

paU1i · Answer

I still don't understand how answer to Q2 is A and not C

A. A miser who burns his money is benefiting society.

Option A can imply 2 things,

1) Burn money (literally) hence miser isn't spending the money thus according to Landsburg money is not getting spent --> Correct

2) Burn money (meaning spend it) hence miser is spending more money which is opposite to what Landsburg has suggested --> Cannot be the answer as author wont agree with this

How can we find correct meaning of the sentence in such scenario?

Sajjad1994 · Answer

Official Explanation

1. The primary purpose of the passage is to

Difficulty Level:   550

Explanation

Analyze the Question Stem:

This is a Global question, asking about the primary purpose of the passage as a whole.

Research the Relevant Text:

Research Global questions by returning to the passage map. The Purpose identified there should be enough to answer this question.

Make a Prediction:

The Purpose identified in the passage map is  "to show that Landsburg makes some good points, but his idea is too extreme."  The correct answer should reflect these ideas.

Evaluate the Answer Choices:

(C)  matches the prediction and is correct.

(A)  and  (B)  reflect Landsburg's point of view, not the author's. The purpose of a passage as a whole is always from the author's point of view.

(D)  is incorrect because the author does not even discuss various types of spending.

(E)  is incorrect because the author does not even discuss better ways of saving money.

Answer: C

TAKEAWAY:   Global questions asking about primary purpose are asking for the author's primary purpose. Watch out for choices that reflect points of view other than the author's.

Stanindaw · Answer

Will you please post an explanantion for Q2
I think Landsburg did say in para 1: "nobody is as generous as a miser"

Sajjad1994 · Answer

Official Explanation

2. The passage suggests that Landsburg would agree with which of the following?

Difficulty Level:   700+

Explanation

The passage map indicates that Landsburg's opinions are described in the first and second paragraphs.

Make a Prediction:

The right answer will be in line with Landsburg's theory that saving is the best thing one can do with money; since this is a fairly open-ended question, a more specific prediction is not possible.

Evaluate the Answer Choices:

The first sentence in paragraph two states that as long as the money is not spent, a miser benefits the society. A person who burns his money, as in  (A) , is not spending it. So, as strange as it might sound,  (A)  is consistent with Landsburg's view, and is the correct answer.

Be careful with  (B).  The third paragraph would support this inference, but since it's in the third paragraph, that means it's the author's opinion, not Landsburg's.

(C)  is too extreme. The author only mentions that, according to Landsburg, saving is the most helpful economic activity that a person can do, and that nobody is as generous as a miser, but this doesn’t necessarily mean that overall a miser benefits society more than anyone else.

(D)  starts out fine, as Landsburg thinks misers benefit more people than philanthropists do. But Landsburg would say that philanthropists should save their money, not spend it.

(E)  is unsupported. The author says that a miser benefits society as long as she doesn’t spend the money, there's no information about her motives, only the results.

TAKEAWAY:  A passage may present several points of view. In an Inference question asking for a statement, someone would agree with, make sure you pay attention to whose point of view is being asked for.

Answer: A

roh1714 · Answer

2. The passage suggests that Landsburg would agree with which of the following?

tip- when you see a question like this it is important to ask who? what? and why? to the passage, please ensure you ask these questions about the persons view point mentioned in the question. 
the passage should support the right ans choice

A. A miser who burns his money is benefiting society. CORRECT (hint: Landsburg points out that no matter what a miser decides to do with her money, as long as the money is not spent, she benefits society.)
B. If everyone saves every dollar that they can, trade will be severely impaired- wrong 
C. A miser benefits society more so than anyone else- wrong, very wide inf
D. Philanthropists should stop giving away their money and should spend it all instead- nonsense, no support in the passage
E. Misers generally save money because they wish to benefit society- wrong, no support in the passage

VerbalBot · Answer

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In a recent article, economist Steven Landsburg argues that saving mon

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GMAT Reading Comprehension (RC) Questions

In a recent article, economist Steven Landsburg argues that saving mon

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