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In most economies, the government plays a role in the market system.
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15 Dec 2011, 23:57
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In most economies, the government plays a role in the market system. Governments enforce the “rules of the game,” impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that
A) economic surpluses are always good. B) market shortages are a necessary evil. C) higher prices strengthen the economy. D) price ceilings add to the shortages. E) surpluses are not usually created intentionally.
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Re: In most economies, the government plays a role in the market system.
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16 Dec 2011, 00:37
1
Kudos
eybrj2 wrote:
17. In most economies, the government plays a role in the market system. Governments enforce the “rules of the game,” impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that
F) economic surpluses are always good. G) market shortages are a necessary evil. H) higher prices strengthen the economy. I) price ceilings add to the shortages. J) surpluses are not usually created intentionally.
Please, explain your reasoning.!!
I thought only choice D and E are the contenders. The others one is too extreme when using always or necessary, "strengthen" (although the author not sure).
Read again the passage in "These actions necessarily may create shortages or surpluses", we know the choice E is wrong. So, POE the only choice D is the correct one.
Re: In most economies, the government plays a role in the market system.
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06 Feb 2012, 04:51
Expert Reply
(A) - The author takes no stance on whether surpluses are good (B) - The author takes no stance on whether shortages are evil (C) - the author does not take a stance on high prices and their being good/bad (D) - cannot draw a direct relation between price ceilings and shortages (E) - CORRECT. The line 'these actions necessarily may create shortages or surpluses' indicates that surpluses are not created intentionally but are the by-products of the actions mentioned in the preceding line
Re: In most economies, the government plays a role in the market system.
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06 Feb 2012, 05:38
In most economies, the government plays a role in the market system. Governments enforce the rules of the game, impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that
A. economic surpluses are always good.Not mentioned. B. market shortages are a necessary evil.Not mentioned C. higher prices strengthen the economy.Not mentioned D. price ceilings add to the shortages.Not mentioned E. surpluses are not usually created intentionally.Since the author supports non interference by the government so this statement which leans towards favoring free economy should be agreed upon by the author.
WE:Corporate Finance (Pharmaceuticals and Biotech)
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Re: In most economies, the government plays a role in the market system.
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16 Oct 2016, 11:01
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Expert Reply
abhimahna wrote:
sayantanc2k bro, your help is required here. Please help.
I added so called J(or E) as the answer but it seems OA is D.
Could you please provide your inputs?
E is not correct - government actions create surplus - this does mot imply that whether the surplus creation was intentional or unintentional.
D is also incorrect - price ceilings or price supports may create shortages or surpluses - it cannot be said (from the information in the passage), which one creates what. If the sentence were as follows, then D would be correct:
These actions may respectively create shortages or surpluses.
Re: In most economies, the government plays a role in the market system.
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17 Oct 2016, 00:26
Expert Reply
sayantanc2k wrote:
abhimahna wrote:
sayantanc2k bro, your help is required here. Please help.
I added so called J(or E) as the answer but it seems OA is D.
Could you please provide your inputs?
E is not correct - government actions create surplus - this does mot imply that whether the surplus creation was intentional or unintentional.
D is also incorrect - price ceilings or price supports may create shortages or surpluses - it cannot be said (from the information in the passage), which one creates what. If the sentence were as follows, then D would be correct:
These actions may respectively create shortages or surpluses.
Sounds cool, thanks brother
So, are we saying the question in its current form is incorrect? Please confirm.
I chose E as I didn't find any other answer choice that is more stronger than E.
WE:Corporate Finance (Pharmaceuticals and Biotech)
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Re: In most economies, the government plays a role in the market system.
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17 Oct 2016, 09:17
Expert Reply
abhimahna wrote:
sayantanc2k wrote:
abhimahna wrote:
sayantanc2k bro, your help is required here. Please help.
I added so called J(or E) as the answer but it seems OA is D.
Could you please provide your inputs?
E is not correct - government actions create surplus - this does mot imply that whether the surplus creation was intentional or unintentional.
D is also incorrect - price ceilings or price supports may create shortages or surpluses - it cannot be said (from the information in the passage), which one creates what. If the sentence were as follows, then D would be correct:
These actions may respectively create shortages or surpluses.
Sounds cool, thanks brother
So, are we saying the question in its current form is incorrect? Please confirm.
I chose E as I didn't find any other answer choice that is more stronger than E.
Brother, I would hesitate to say incorrect because even in the current form option D is the best. Let's say it can be better when "respectively" is added - then there would be no ambiguity at all.
Re: In most economies, the government plays a role in the market system.
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23 May 2018, 18:17
eybrj2 wrote:
In most economies, the government plays a role in the market system. Governments enforce the “rules of the game,” impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that
A) economic surpluses are always good. B) market shortages are a necessary evil. C) higher prices strengthen the economy. D) price ceilings add to the shortages. E) surpluses are not usually created intentionally.
Awful question.
I am still not agree that D has to be answer. A,B,C are very bad. D, E are just bad.
Re: In most economies, the government plays a role in the market system.
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14 Jun 2020, 17:27
I agree. I assess D and E are both bad choices; however, “less bad” than A-C.
The passage suggests that shortages and surpluses can be influenced by price ceilings; the passage did not say in which direction. That said, since we are required to infer from the passage, we do know that such policy does in fact have an impact on surpluses/shortages, and therefore is the best solution of the five. IMO of course.
Re: In most economies, the government plays a role in the market system.
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20 Jun 2020, 13:32
tuanquang269 wrote:
I thought only choice D and E are the contenders. The others one is too extreme when using always or necessary, "strengthen" (although the author not sure).
Read again the passage in "These actions necessarily may create shortages or surpluses", we know the choice E is wrong. So, POE the only choice D is the correct one.
Both D and E have issues. D is wrong in my view because it takes away the probability by only using the word "add", such that it is definitely the case, which is not true. E has issues because it introduces the word "usually".
Re: In most economies, the government plays a role in the market system.
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01 Sep 2021, 00:47
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Re: In most economies, the government plays a role in the market system. [#permalink]