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In the Wealth of Nations (1776), Scottish economist Adam Smith... 10 Sep 2022, 07:46
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Question 1


Rickooreo
GMATNinja CrackverbalGMAT : Doubt in GMATprep RC

Can you please help me with one perspective I have of Q#1

The author of the passage refers to “truck, barter and exchange” in the highlighted text most likely in order to
(A) lend authority to the argument that commerce is characterized by self-interest

In the wealth of nations (1776), Scottish economist Adam Smith asserted that the propensity of “truck, barter and exchange” was both the foundation of commerce and a given quality of human nature, driven by individual desire.

My approach : The intent of the whole para is to say transactions are not motivated by self-interest in village communities as believed.

To say "they are not motivated by self-interest", we first need to show they are motivated by it and thats the sole reason of mentioning Adam Smith's quote, had the intent of the passage been something else Adam Smith's quote would not have been relevant and hence the big picture purpose of the quote is support that commerce is characterized by self-interest

Can you please help me know where I went wrong.
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The problem with (A) is that the author is not looking to lend authority to the idea that commerce is characterized by self-interest. As you note, the author disagrees with this idea, and the passage as a whole seeks to discredit it. For that reason, while the author may refer to "truck, barter and exchange" to explain Adam Smith's point of view, the author definitely does not want to lend authority to an argument that he/she disagrees with, and we can eliminate (A).

I hope that helps!
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In the Wealth of Nations (1776), Scottish economist Adam Smith... 23 Oct 2022, 04:41
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Q2: A closer look at who's concerned with "human nature"



The author focuses explicitly on the language that people in early modern England used when doing business. The author points to this use of language as something that the typical view (which does depend on a Smith-like view of human nature) fails to consider:

Quote:
However, such a view fails to account for the language that people in early modern England used to articulate their understanding of business relations, language that stressed credit, trust, obligations, and contracts, rather than self-interest.
I hope this clarifies why we eliminate (B). Choice (E) is much better supported by the passage, and directly answers the question that we're being asked: What have these economic historians failed to examine?
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GMATNinja

Quote:
(A) The power of business relations to shape moral values and beliefs.
The passage does not suggest that those historians failed to consider the power of business relations to shape moral values and beliefs. In fact, the last sentence of the first paragraph demonstrates that those historians felt that business relations had the power to weaken the spirit of cooperation and encourage of individualism.

In other words, the author and those historians would disagree about how business relations shaped moral values and beliefs but not about whether business relations have the power to shape a moral values and beliefs.

As described in this post, choice (E) is a better answer.

I hope that helps
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Hi experts GMATNinja AndrewN zhanbo avigutman

I've checked all explanations regarding Q2 by GMATNinja (they are as good as always!)
However, I still hope to confirm (E). In my practice, I could not make a quick call between (A) and (E).

I was hesitant about (E) because of the word "actual" in the option--(E) The actual language used by people in village communities to refer to their business dealings. When I read the second paragraph, I thought that "language" can refer to the real, verbal, or written business language (such as wording and phrasing), or refer to more abstract concepts or ideas (as seen in the b-(3) definition from Webster dictionary: the suggestion by objects, actions, or conditions of associated ideas or feelings).

I know in the GMAT world, correct options are generally not "obviously correct," and I might be paying attention to insignificant details here. But sometimes paying attention to these details (one modifier in an option) can help me eliminate incorrect options. Could you share some of your ideas on the option (E)?

Meanwhile, for the option (A), GMATNinja has explained in a previous post why (A) is incorrect. I see that the historians maintain that the business relations have weakened the spirit of village communities, while the author goes towards a different direction by saying at the end of passage that the business helped villages bond together.

However, I hope to check the phrasing of Q2, which asks "It can be inferred that the author of the passage believes that economic historians whose views have been influenced by Adam Smith have failed to examine which of the following?"

These historians have developed a theory/idea/interpretation about the power of business (that is, it weakens the village communities). I thought that (A) could be a correct option, as by choosing (A), we mean that these historians fail to "examine" (think clearly about) the role of the power of business. Thus, I could not eliminate (A) quickly.

Do I have a logic issue here? Am I wrong because these historians have thought clearly about the role of the power of business, but it is just that the historians and the author have different opinions? (I have no intention to defend (A) but I hope to learn more to improve.)

Thank you so much! :)
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In the Wealth of Nations (1776), Scottish economist Adam Smith... 25 Oct 2022, 06:43
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GraceSCKao
I was hesitant about (E) because of the word "actual" in the option--(E) The actual language used by people in village communities to refer to their business dealings. When I read the second paragraph, I thought that "language" can refer to the real, verbal, or written business language (such as wording and phrasing), or refer to more abstract concepts or ideas (as seen in the b-(3) definition from Webster dictionary: the suggestion by objects, actions, or conditions of associated ideas or feelings).

I know in the GMAT world, correct options are generally not "obviously correct," and I might be paying attention to insignificant details here. But sometimes paying attention to these details (one modifier in an option) can help me eliminate incorrect options. Could you share some of your ideas on the option (E)?
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The word "actual" gave me pause as well, GraceSCKao, so you're in good company. It caused me to take a VERY close look at this sentence:
Quote:
However, such a view fails to account for the language that people in early modern England used to articulate their understanding of business relations
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I finally decided that (E) is okay because of the word "articulate". The word "articulate" disqualifies definition b-(3) from Webster.
GraceSCKao
For the option (A), GMATNinja has explained in a previous post why (A) is incorrect. I see that the historians maintain that the business relations have weakened the spirit of village communities, while the author goes towards a different direction by saying at the end of passage that the business helped villages bond together.

However, I hope to check the phrasing of Q2, which asks "It can be inferred that the author of the passage believes that economic historians whose views have been influenced by Adam Smith have failed to examine which of the following?"

These historians have developed a theory/idea/interpretation about the power of business (that is, it weakens the village communities). I thought that (A) could be a correct option, as by choosing (A), we mean that these historians fail to "examine" (think clearly about) the role of the power of business. Thus, I could not eliminate (A) quickly.
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I wonder if you conflated the ideas of "think clearly about" and "being correct about"? It might help to look at the definition of "examine":
inspect (someone or something) in detail to determine their nature or condition; investigate thoroughly.
You can examine something and arrive at an incorrect conclusion. That doesn't mean that you failed to examine it. It means that you examined it and reached an incorrect conclusion.
See here for further clarification.
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In the Wealth of Nations (1776), Scottish economist Adam Smith... 02 Nov 2025, 11:17
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In question 1, I still don't buy why C is a better answer than A. How do we know these are the terms Smith used to "define" business relations. That seems to be assuming certain things.

In fact, I'm willing to buy A a lil more even though I don't agree with A fully. How exactly do we differentiate A and C here?
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In the Wealth of Nations (1776), Scottish economist Adam Smith... 06 Nov 2025, 00:25
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What the passage literally says:
"Adam Smith asserted that the propensity of 'truck, barter and exchange' was both the foundation of commerce and a given quality of human nature"
This tells us two facts:
  1. Smith used these specific words
  2. Smith used them to describe what commerce fundamentally is (= defining business relations)
C captures both facts exactly: "the terms Adam Smith used to define business relations"

Why not A?
A says the author refers to these terms to "lend authority to the argument that commerce is characterized by self-interest."
But look at what the author is actually doing:
  • The author DISAGREES with Smith's self-interest view (see "However, such a view fails...")
  • The author brings up Smith's terms to INTRODUCE Smith's position, not to support it
  • The author never tries to make Smith's view seem more authoritative
The author quotes Smith to set up the view he'll challenge, not to lend it authority.

The exact differentiation:
C = WHY Smith used these terms (to define what business is)
A = WHY the author quotes these terms (supposedly to support self-interest argument)

But the author quotes them to INTRODUCE and then REJECT Smith's view, not to lend it authority.
C describes Smith's purpose. A misreads the author's purpose.

Pranavsawant
In question 1, I still don't buy why C is a better answer than A. How do we know these are the terms Smith used to "define" business relations. That seems to be assuming certain things.

In fact, I'm willing to buy A a lil more even though I don't agree with A fully. How exactly do we differentiate A and C here?
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