GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 16 Oct 2018, 11:46

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Most economists in the United States seem captivated by the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
User avatar
Joined: 10 Sep 2013
Posts: 25
Location: India
Concentration: Accounting, Finance
GMAT Date: 10-25-2013
GPA: 3.66
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 07 Oct 2013, 09:12
3. The author’s attitude toward “Most economists in the United States”(line 1) can best be described as
(A) spiteful and envious
(B) scornful and denunciatory
(C) critical and condescending
(D) ambivalent but deferential
(E) uncertain but interested
4. It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” (line 7) because
(A) people do not have confidence in large firms
(B) people do not expect the government to regulate prices
(C) most economists believe that consumers as a group should determine prices
(D) most economists associate fixed prices with communist and socialist economies
(E) most economists believe that no one group should determine prices
8. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?
(A) The directors of large firms will continue to anticipate the demand for products.
(B) The directors of large firms are less interested in achieving a predictable level of profit than in achieving a large profit.
(C) The directors of large firms will strive to reduce the costs of their products.
(D) Many directors of large firms believe that the government should establish the prices that will be charged for products.
(E) Many directors of large firms believe that the price charged for products is likely to increase annually.



I have OAs for this passage:

3.C
4.C
8.A
_________________

Strive for Excellence....!!!!!

Economist GMAT Tutor Discount CodesManhattan GMAT Discount CodesEMPOWERgmat Discount Codes
Senior CR Moderator
User avatar
V
Status: Long way to go!
Joined: 10 Oct 2016
Posts: 1381
Location: Viet Nam
GMAT ToolKit User Premium Member
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 21 Jul 2017, 09:28
Intern
Intern
avatar
B
Joined: 13 May 2017
Posts: 23
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 22 Jul 2017, 16:27
Why are 8C wrong and 6C wrong? please help..
Senior Manager
Senior Manager
avatar
G
Joined: 09 Feb 2015
Posts: 360
Location: India
Concentration: Social Entrepreneurship, General Management
GMAT 1: 690 Q49 V34
GMAT 2: 720 Q49 V39
GPA: 2.8
Premium Member Reviews Badge CAT Tests
Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 04 Nov 2017, 02:53
KanakGarg wrote:
Why are 8C wrong and 6C wrong? please help..


For question 8 :

Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products.

C is wrong because in the first para, it is mentioned that the directors of the large companies dont want the price to reduce because lower price leads to increased demand and they dont want to handle any unanticipated demand.

For question 6:

But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms; rather, Soviet firms have been given the power to fix prices. this is in the last paragragh.

C is nowhere mentioned. Hence E is right.
Manager
Manager
avatar
B
Joined: 18 Jun 2013
Posts: 56
Location: India
Concentration: Technology, General Management
GMAT 1: 690 Q50 V35
GPA: 3.2
WE: Information Technology (Consulting)
Reviews Badge
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 13 Apr 2018, 00:45
Got 2 wrong. Good passage.
Manager
Manager
User avatar
G
Joined: 15 Nov 2016
Posts: 140
Concentration: General Management, Leadership
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 16 Apr 2018, 02:24
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to think of price-fixing (the determination of prices by the seller) as both “normal” and having a valuable economic function. In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not.

Moreover, those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non-socialist countries other than the United states. These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace. Were there something peculiarly efficient about the free market and inefficient about price-fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have.

Socialist industry also works within a framework of controlled prices. In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system. Economists in the United States have hailed the change as a return to the free market. But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms; rather, Soviet firms have been given the power to fix prices.

1. The primary purpose of the passage is to

(E) argue that price-fixing, in one form or another, is an inevitable part of and benefit to the economy of any industrialized society


2. The passage provides information that would answer which of the following questions about price-fixing?

I. What are some of the ways in which prices can be fixed?
II. For what products is price-fixing likely to be more profitable that the operation of the free market?
There are no products which are being discussed in the passage.
III. Is price-fixing more common in socialist industrialized societies or in non-socialist industrialized societies?
We have no info about this.

(A) I only

3. The author’s attitude toward “Most economists in the United States” (line 1) can best be described as

(C) critical and condescending

4. It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” (line 7) because

A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems pernicious.

(C) most economists believe that consumers as a group should determine prices

5. The suggestion in the passage that price-fixing in industrialized societies is normal arises from the author’s statement that price-fixing is

In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires.

(B) an inevitable result of the industrial system


6. According to the author, price-fixing in non-socialist countries is often
These economies employ intentional price-fixing, usually in an overt fashion.
(E) intentional and widespread

7. According to the author, what is the result of the Soviet Union’s change in economic policy in the 1970’s?
But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms

(D) Soviet firms have some authority to fix prices.


8. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?

Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers.

(A) The directors of large firms will continue to anticipate the demand for products.

9. In the passage, the author is primarily concerned with

(A) predicting the consequences of a practice - There are no predictions by the author. He is going against the economists.
(B) criticizing a point of view - Yes, economist's point of view.
(C) calling attention to recent discoveries - There are no recent discoveries in the passage.
(D) proposing a topic for research - Looks like he has already researched the topic and presented his findings.
(E) summarizing conflicting opinions - There is no summery present in the passage.
Intern
Intern
avatar
B
Joined: 29 Oct 2017
Posts: 21
Location: India
Concentration: Finance, Entrepreneurship
GPA: 3.82
WE: Information Technology (Commercial Banking)
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 10 Jul 2018, 11:43
Someone, please provide the OE for this passage(Q-1,3,5,8,9)
Intern
Intern
avatar
B
Joined: 16 Jun 2018
Posts: 18
Location: India
Schools: Stern '21
GMAT 1: 700 Q49 V41
GPA: 4
CAT Tests
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 10 Jul 2018, 12:50
Hi Experts ! Can you please answers these questions with reasons?
Intern
Intern
avatar
B
Joined: 30 Sep 2017
Posts: 48
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 12 Aug 2018, 06:36
1. The primary purpose of the passage is to
(A) refute the theory that the free market plays a useful role in the development of industrialized societies the argument discusses whether price-fixing plays a useful role, not the free market
(B) suggest methods by which economists and members of the government of the United States can recognize and combat price-fixing by large firms superficial words match
(C) show that in industrialized societies price-fixing and the operation of the free market are not only compatible but also mutually beneficial
(D) explain the various ways in which industrialized societies can fix prices in order to stabilize the free market Consequently, nothing seems good or normal that does not accord with the requirements of the free market. - clearly no
(E) argue that price-fixing, in one form or another, is an inevitable part of and benefit to the economy of any industrialized society In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. <...> Were there something peculiarly efficient about the free market and inefficient about price-fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have. - correct

2. The passage provides information that would answer which of the following questions about price-fixing?
I. What are some of the ways in which prices can be fixed? "Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not." AND "These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace."
II. For what products is price-fixing likely to be more profitable that the operation of the free market? not given
III. Is price-fixing more common in socialist industrialized societies or in non-socialist industrialized societies? it's described in both societies, but not stated in which price-fixing is more common
(A) I only
(B) III only
(C) I and II only
(D) II and III only
(E) I, II, and III

3. The author’s attitude toward “Most economists in the United States” (line 1) can best be described as
(A) spiteful and envious too negatively strong - unprofessional
(B) scornful and denunciatory too negatively strong - unprofessional
(C) critical and condescending correct - what's left
(D) ambivalent but deferential actually the author keeps one stance - they miss some aspects about price fixing (my mistake choosing this one)
(E) uncertain but interested the author seems to be certain by claiming that they miss some points about price fixing

4. It can be inferred from the author’s argument that a price fixed by the seller “seems pernicious” (line 7) because relevant text: Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems pernicious.
(A) people do not have confidence in large firms not given
(B) people do not expect the government to regulate prices people's opinion is not given
(C) most economists believe that consumers as a group should determine prices correct
(D) most economists associate fixed prices with communist and socialist economies seems to be true but isn't correct to answer the question
(E) most economists believe that no one group should determine prices actual they believe that market price is solely established by consumers

5. The suggestion in the passage that price-fixing in industrialized societies is normal arises from the author’s statement that price-fixing is relevant text: In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires.
(A) a profitable result of economic development
(B) an inevitable result of the industrial system correct - simply a paraphrase of the statements above
(C) the result of a number of carefully organized decisions
(D) a phenomenon common to industrialized and non-industrialized societies
(E) a phenomenon best achieved cooperatively by government and industry

6. According to the author, price-fixing in non-socialist countries is often These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace.
(A) accidental but productive it's mentioned that price-fizing is intentional
(B) illegal but useful the opposite is true - legal
(C) legal and innovative innovative - not sure
(D) traditional and rigid might be true, but not given explicitly
(E) intentional and widespread correct

7. According to the author, what is the result of the Soviet Union’s change in economic policy in the 1970’s? relevant text: In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices <...> Economists in the United States have hailed the change as a return to the free market. But <...>, Soviet firms have been given the power to fix prices.
(A) Soviet firms show greater profit.
(B) Soviet firms have less control over the free market. the opposite is true - they can fix prices
(C) Soviet firms are able to adjust to technological advances.
(D) Soviet firms have some authority to fix prices. correct
(E) Soviet firms are more responsive to the free market.

8. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?
(A) The directors of large firms will continue to anticipate the demand for products. the one that's left: demand is a factor that affect their choice not to increase or decrease the price too much; not sure about the relevant part of the passage for this one
(B) The directors of large firms are less interested in achieving a predictable level of profit than in achieving a large profit. profits are discussed
(C) The directors of large firms will strive to reduce the costs of their products. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products.
(D) Many directors of large firms believe that the government should establish the prices that will be charged for products. unlikely because the firms operate in the free market; if anything the belief is not given
(E) Many directors of large firms believe that the price charged for products is likely to increase annually. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge <..> - so this answer is incorrect

9. In the passage, the author is primarily concerned with
(A) predicting the consequences of a practice
(B) criticizing a point of view the author gives reasons to believe that price-fixing is good and that most economist advocating the free market might be wrong in their disbelief in price-fixing
(C) calling attention to recent discoveries
(D) proposing a topic for research
(E) summarizing conflicting opinions
Senior Manager
Senior Manager
User avatar
G
Joined: 31 May 2017
Posts: 322
GMAT ToolKit User Reviews Badge CAT Tests
Re: Most economists in the United States seem captivated by the  [#permalink]

Show Tags

New post 20 Aug 2018, 17:57
Tough Passage. Got 4 out of 9 wrong. 10 minutes on the clock.
_________________

Please give kudos if it helps

Resources
Ultimate GMAT Quantitative Megathread | ALL YOU NEED FOR QUANT ! ! ! | SC Blogs by Magoosh | How to improve your verbal score | Things i wish i could've done earlier | Ultimate Q51 Guide

GMAT Club Bot
Re: Most economists in the United States seem captivated by the &nbs [#permalink] 20 Aug 2018, 17:57

Go to page   Previous    1   2   [ 30 posts ] 

Display posts from previous: Sort by

Most economists in the United States seem captivated by the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.