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# In the 1960s, Northwestern University sociologist John McKnight coined

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In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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Updated on: 27 Sep 2019, 01:05
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In the 1960s, Northwestern University sociologist John McKnight coined the term redlining, the practice of denying or severely limiting service to customers in particular geographic areas, often determined by the racial composition of the neighborhood. The term came from the practice of banks outlining certain areas in red on a map; within the red outline, banks refused to invest. With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.

Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968, which prohibited such discrimination based on race, religion, gender, familial status, disability, or ethnic origin, and by community reinvestment legislation in the 1970s. However, redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more. Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.

Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.

1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.

2. Which correctly describes a sequence of events presented in the passage?

(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only

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Originally posted by sananoor on 09 Oct 2018, 10:01.
Last edited by SajjadAhmad on 27 Sep 2019, 01:05, edited 2 times in total.
Updated - Complete topic (704).
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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09 Oct 2018, 10:19
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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29 Oct 2018, 22:24

+1 kudos to the posts containing answer explanations of all questions

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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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29 Oct 2018, 22:42
sananoor wrote:
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?

I have the same issue. If any of the experts can please pitch in?

daagh
egmat
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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29 Oct 2018, 23:46
2
sananoor wrote:
In the 1960s, Northwestern University sociologist John McKnight coined the term redlining, the practice of denying or severely limiting service to customers in particular geographic areas, often determined by the racial composition of the neighborhood. The term came from the practice of banks outlining certain areas in red on a map; within the red outline, banks refused to invest. With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.

Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968, which prohibited such discrimination based on race, religion, gender, familial status, disability, or ethnic origin, and by community reinvestment legislation in the 1970s. However, redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more. Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.

Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.
1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.

2. Which correctly describes a sequence of events presented in the passage?

(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only

4:40, All Correct!

1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.- not a form of Reverse redlining
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.-not a form of Reverse redlining
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.-not a form of Reverse redlining
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.- True, refer "reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service..."
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.-not a form of Reverse redlining

2. Which correctly describes a sequence of events presented in the passage?

(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.-Reverse redlining doesn't lead to landlord abandonment.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing. -Redlining leads to landlord abandonment not other way around.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing- True,.

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.-Not ceased, continued in but in different form.

ii)Providing services based on zip code may be a form of redlining.-True, refer "Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.."

iii)Access to mortgages is related to higher property values-True, refer "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.."
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only- Correct answer

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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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29 Oct 2018, 23:50
1
nitesh50 wrote:
sananoor wrote:
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?

I have the same issue. If any of the experts can please pitch in?

daagh
egmat
GMATNinja
LauraOrion

Hi,

Please refer to my explanation, it might help!

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.-Not ceased, continued in but in different form.

ii)Providing services based on zip code may be a form of redlining.-True, refer "Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.."

iii)Access to mortgages is related to higher property values-True, refer "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.."

Now, what does the 3 statement imply?

they imply that as access to mortgages changes, so does the property values!

Hope it helps!

a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only- Correct answer
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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02 Nov 2018, 21:06
I disagree with Q3
the passage extract - some auto insurance companies 15 offer different rates based on zip code.

option 2 - Providing services based on zip code may be a form of redlining

providing service is not wrong ... differing in services based on based on zip codes is wrong... GMATNinja DmitryFarber .. does "may be " qualify this answer??
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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03 Nov 2018, 08:44
Hey there! Thanks for posting.

I have to say i strongly disagree with the 3d question's answer. I would go for B.
Indeed, the passage only states that "redlighting involves a lower property value". Does that mean that access to mortgage is related with a higher property value.
No, it only means that access to mortgage CAN AT LEAST ensure the current property value. Considering that the property value would increase is an assumption to me, not a inference.

Can you confirm OA?

Best
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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09 Nov 2018, 21:50
sananoor wrote:
3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only

workout In the third question, iii) can not be inferred from the following lines "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values. ".
Just because A leads to B, we can not say that not A wil lead to Not B right? As far as my understanding goes, we can not infer in this way when it comes to GMAT type questions. Can you please help??
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Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

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19 Nov 2018, 12:26
1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods. - Incorrect - this is an example of redlining
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications. - Incorrect - this is an example of redlining
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others. - Incorrect
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere. - Correct
Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.

(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.- Incorrect

2. Which correctly describes a sequence of events presented in the passage?
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing. - Correct

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968. --- Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968
BUT redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more.

ii)Providing services based on zip code may be a form of redlining. --
Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code. -- In case of auto insurance companies different rates based on zip code is specified. If statement 2 was "Providing differing services based on zip code may be a form of redlining", then the auto insurance example would have sufficed.

Q1-Can we infer 2 based on "the practice of denying or severely limiting service to customers in particular geographic areas" in the first paragraph and because statement 2 says may be?

With no access to mortgages, residents within the red line suffered low property values and landlord abandonment.

No Mortgages--> Low property values
Q2-So with mortgages, the property values can either remain same or rise. So can we surely say that Access to mortgages is correlated to higher property values?

AjiteshArun , GMATNinja , MagooshExpert , GMATGuruNY , VeritasKarishma , ChiranjeevSingh , VeritasPrepBrian , MartyMurray , ccooley , other experts - please enlighten
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Re: In the 1960s, Northwestern University sociologist John McKnight coined   [#permalink] 19 Nov 2018, 12:26
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