Last visit was: 15 Jul 2024, 13:37 It is currently 15 Jul 2024, 13:37
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
SORT BY:
Date
Tags:
Show Tags
Hide Tags
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 14066
Own Kudos [?]: 36478 [11]
Given Kudos: 5828
GPA: 3.62
Send PM
Senior Manager
Senior Manager
Joined: 05 Aug 2019
Posts: 400
Own Kudos [?]: 208 [4]
Given Kudos: 132
Location: Spain
Concentration: Strategy, Technology
GMAT 1: 650 Q50 V28 (Online)
GMAT 2: 700 Q49 V37
GPA: 3.23
WE:General Management (Real Estate)
Send PM
Manager
Manager
Joined: 23 Jan 2019
Posts: 175
Own Kudos [?]: 286 [1]
Given Kudos: 80
Location: India
Send PM
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 14066
Own Kudos [?]: 36478 [2]
Given Kudos: 5828
GPA: 3.62
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
2
Kudos
Expert Reply
OAs are posted, Let me know if you have any question.

1. A
2. E
3. B
4. C

Not an impressive response on this question we have only two persons who replied. So easy decision here pabpinor is the winner for this RC. Good thing is that abcdddddd has improved and got 2/4 correct.

Good Luck for the next questions i will be going to post shortly. After posting today's RC i will also post the notice board for the top contributors. Stay tuned.

Good Luck
Manager
Manager
Joined: 17 Oct 2019
Posts: 56
Own Kudos [?]: 35 [0]
Given Kudos: 109
Location: Kenya
Concentration: Leadership, Strategy
GMAT 1: 510 Q26 V34
WE:Science (Energy and Utilities)
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
Kindly provide OE for qn 4. I tend to struggle with such question types. Thanks
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 14066
Own Kudos [?]: 36478 [1]
Given Kudos: 5828
GPA: 3.62
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
1
Kudos
Expert Reply
BlueBook wrote:
Kindly provide OE for qn 4. I tend to struggle with such question types. Thanks


Official Explanation


4. Which of the following is LEAST accurate in characterizing the author’s method of argumentation in discussing the significance of falling stock prices (Text in Red)?

Explanation

Although the author does respond to what might be one undesired result of voucher privatization—falling stock prices, as well as explain the cause of falling stock prices—the author does not offer an “alternative” explanation for this phenomenon, as suggested by choice (C).

Moreover, the author’s purpose in discussing falling stock prices is not to explain their cause, but rather to acknowledge that what appears to be an undesirable consequence of voucher privatization may actually help bring about a desirable result.

The correct answer is (C).
Senior Manager
Senior Manager
Joined: 31 Jan 2019
Posts: 368
Own Kudos [?]: 729 [4]
Given Kudos: 67
Location: Switzerland
Concentration: General Management
GPA: 3.9
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
3
Kudos
1
Bookmarks
Hi everyone,
Got 3/4 correct in 10 minutes, including 3:50 minutes to read and 6:10 minutes to answer the questions.

----------------------------------------------------------------------------------------------------


P1

In paragraph one the author talks about to approaches to privatization adopted by ex communists countries. Gradual privatization is not favored by the author and one approach to rapid privatization also has some problems according to the author.

Purpose: To present 2 approaches to privatization, considering the drawbacks associated.




P2

In paragraph 2 the author presents the second approach to rapid privatization, that is to give vouchers to employees. Then the author presents 2 critics to such practice and refutes them.

Purpose: to present and refute 2 critics to the second approach to rapid privatization.



Main point

To discuss 3 approaches to privatization and choose one (giving vouchers to employees) as the best one.



----------------------------------------------------------------------------------------------------


1. Which of the following is NOT mentioned in the passage as a possible adverse consequence of rapid privatization?

Pre-thinking

Detail question

From P1:
    However, gradual privatization would only prolong the core problems of
    inefficiency and misallocation of both labor and capital.


(A) Undue prolongation of inefficiency and misallocation
(B) Loss of ownership in domestic private enterprises to foreign concerns mentioned in P2
(C) Financial devastation for employees of private enterprises Mentioned in P1
(D) Inequitable distribution of wealth among employees of various enterprises Mentioned in P1
(E) Instability in stock prices Mentioned in P2



----------------------------------------------------------------------------------------------------



2. Which of the following would the author probably agree is the LEAST desirable outcome of economic reform in formerly Communist countries?

Pre-thinking

Inference question

To answer the question we need to understand the goal of such countries.
The aim of such country is to give more opportunities and more possessions to people.


(A) Effective allocation of labor
From P1:
    However, gradual privatization would only prolong the core problems of
    inefficiency and misallocation of both labor and capital.

This effect is desired


(B) Equitable distribution of property among citizens
Of course

(C) Financial security of citizens
Can be inferred from P1 because if to achieve the goal of privatization shares are given to employees, clearly such approach aims at increasing financial security

(D) Equal opportunity for financial success among citizens
Can be inferred from the last sentence of the passage.

(E) Financial security of private enterprises
Among the options mentioned this is the least desirable.



----------------------------------------------------------------------------------------------------


3. In responding to those “skeptics” who claim that people will sell their vouchers to foreign capitalists (Highlighted), the author implies that

Pre-thinking

Assumption question

[b]The author assumes that their reasoning is wrong first because they think that such employees will not retain their vouchers and second because such critics address the wrong aspect af the approach.

[/b]

(A) foreign capitalists will not be willing to pay a fair price for the vouchers. Out of scope

(B) the future flow of income is likely in many cases to exceed the present exchange value of a voucher.
Yes, probably employees will retain their vouchers for some reason and this option gives us that reason.

(C) foreign investment in a nation’s enterprises may adversely affect currency exchange rates.
Out of scope

(D) although the skeptics are correct, their point is irrelevant in evaluating the merits of voucher privatization.
This is the classic example of an half correct/half wrong question. The author never thinks that the critics are correct.

(E) foreign capitalists are less interested in the success of voucher privatization than in making a profit.
out of scope



----------------------------------------------------------------------------------------------------


4. Which of the following is LEAST accurate in characterizing the author’s method of argumentation in discussing the significance of falling stock prices (Text in Red)?

Pre-thinking



Let's deconstruct the portion of the passage that is of interest to the question.

    Some critics charge that voucher holders would not be interested in how their enterprises are managed, as may be true of small corporate shareholders in capitalist countries who pay little attention to their investments until the corporation’s profits fail to meet expectations, at which time these shareholders rush to sell their securities.


Here we are given the substance of the critic: employees do not care of vouchers and behave like some other people who when stock prices are falling rush to sell their shares.


    While the resulting fall in stock prices can cause serious problems for a corporation, it is this very pressure that drives private firms toward efficiency and profitability.


Here the author expresses a contrast by claiming that: "Yes, what you critics say is correct. That happens. But there is more to what you are claiming. This pressure many times drives companies to be profitable and efficient."

So per the author there is some positive aspect associated to what the critics consider negative. Hence the author turns the critic into something positive.


(A) Describing a paradox that supports the author’s position
No paradox

(B) Asserting that one drawback of an approach is outweighed by countervailing considerations
per the author there is no draw back actually

(C) Rebutting an opposing position by suggesting an alternative explanation
Correct, the author sees the scenario that critics discuss in a different, more positive light.

(D) Discrediting an opposing argument by questioning its relevance
The author does not question the relevance.

(E) Characterizing an argument against a course of action instead as an argument in its favor
out of scope


----------------------------------------------------------------------------------------------------

It's a great day to be alive!
Intern
Intern
Joined: 02 May 2020
Posts: 39
Own Kudos [?]: 20 [1]
Given Kudos: 18
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
1
Kudos
Hi
For Question 2
Which of the following would the author probably agree is the LEAST desirable outcome of economic reform in formerly Communist countries?

(A) Effective allocation of labor
(B) Equitable distribution of property among citizens - He mentions in the last line of the passage that 'Even if an individual should decide to sell, the aim of voucher privatization is NOT TO SECURE EQUALITY OF PROPERTY but rather equality of opportunity.'
(C) Financial security of citizens
(D) Equal opportunity for financial success among citizens
(E) Financial security of private enterprises

Please explain how 'B' is not the correct answer here.
I couldn't find anywhere where the author's opinion on financial security of private enterprises has been stated or even implied.(Which is mentioned in point'E', which is the correct answer to this question)
I could have missed it or misunderstood some part, hence need help understanding this.
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 14066
Own Kudos [?]: 36478 [0]
Given Kudos: 5828
GPA: 3.62
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
Expert Reply
dushyantkanal wrote:
Hi
For Question 2
Which of the following would the author probably agree is the LEAST desirable outcome of economic reform in formerly Communist countries?

(A) Effective allocation of labor
(B) Equitable distribution of property among citizens - He mentions in the last line of the passage that 'Even if an individual should decide to sell, the aim of voucher privatization is NOT TO SECURE EQUALITY OF PROPERTY but rather equality of opportunity.'
(C) Financial security of citizens
(D) Equal opportunity for financial success among citizens
(E) Financial security of private enterprises

Please explain how 'B' is not the correct answer here.
I couldn't find anywhere where the author's opinion on financial security of private enterprises has been stated or even implied.(Which is mentioned in point'E', which is the correct answer to this question)
I could have missed it or misunderstood some part, hence need help understanding this.


Official Explanation


2. Which of the following would the author probably agree is the LEAST desirable outcome of economic reform in formerly Communist countries?

Difficulty Level: 700

Explanation

In the third paragraph the author suggests a willingness to place a private enterprise at risk for the broader purpose of achieving a free-market system. While advocating voucher privatization, the author admits that this approach may very well result in the instability of stock prices; yet, the author seems to view the insecurity caused by market pressures as “good” for private enterprises in that it will drive them to efficiency—a sort of sink-or-swim approach.

The correct answer is (E).
Intern
Intern
Joined: 19 Mar 2019
Posts: 17
Own Kudos [?]: 11 [0]
Given Kudos: 20
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
.

Originally posted by BBD on 27 Jun 2020, 17:33.
Last edited by BBD on 27 Nov 2020, 15:06, edited 1 time in total.
Director
Director
Joined: 28 Sep 2018
Posts: 710
Own Kudos [?]: 571 [0]
Given Kudos: 248
GMAT 1: 660 Q48 V33 (Online)
GMAT 2: 700 Q49 V37
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]

4. Which of the following is LEAST accurate in characterizing the author’s method of argumentation in discussing the significance of falling stock prices (Text in Red)?

Pre-thinking



Let's deconstruct the portion of the passage that is of interest to the question.

    Some critics charge that voucher holders would not be interested in how their enterprises are managed, as may be true of small corporate shareholders in capitalist countries who pay little attention to their investments until the corporation’s profits fail to meet expectations, at which time these shareholders rush to sell their securities.


Here we are given the substance of the critic: employees do not care of vouchers and behave like some other people who when stock prices are falling rush to sell their shares.


    While the resulting fall in stock prices can cause serious problems for a corporation, it is this very pressure that drives private firms toward efficiency and profitability.


Here the author expresses a contrast by claiming that: "Yes, what you critics say is correct. That happens. But there is more to what you are claiming. This pressure many times drives companies to be profitable and efficient."

So per the author there is some positive aspect associated to what the critics consider negative. Hence the author turns the critic into something positive.


(A) Describing a paradox that supports the author’s position
No paradox

(B) Asserting that one drawback of an approach is outweighed by countervailing considerations
per the author there is no draw back actually

(C) Rebutting an opposing position by suggesting an alternative explanation
Correct, the author sees the scenario that critics discuss in a different, more positive light.

(D) Discrediting an opposing argument by questioning its relevance
The author does not question the relevance.

(E) Characterizing an argument against a course of action instead as an argument in its favor
out of scope


----------------------------------------------------------------------------------------------------

It's a great day to be alive![/quote]


Found you posts really helpful. Thank you for such a thorough analysis of the answer choices. Please could you help me understand how exactly is (C) in Q4. correct? As you stated "So per the author there is some positive aspect associated to what the critics consider negative. Hence the author turns the critic into something positive." While the question stem says "Which of the following is LEAST accurate in characterizing the author’s method of argumentation "
Manager
Manager
Joined: 25 May 2020
Posts: 134
Own Kudos [?]: 49 [0]
Given Kudos: 40
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
Hoozan wrote:

4. Which of the following is LEAST accurate in characterizing the author’s method of argumentation in discussing the significance of falling stock prices (Text in Red)?

Pre-thinking



Let's deconstruct the portion of the passage that is of interest to the question.

    Some critics charge that voucher holders would not be interested in how their enterprises are managed, as may be true of small corporate shareholders in capitalist countries who pay little attention to their investments until the corporation’s profits fail to meet expectations, at which time these shareholders rush to sell their securities.


Here we are given the substance of the critic: employees do not care of vouchers and behave like some other people who when stock prices are falling rush to sell their shares.


    While the resulting fall in stock prices can cause serious problems for a corporation, it is this very pressure that drives private firms toward efficiency and profitability.


Here the author expresses a contrast by claiming that: "Yes, what you critics say is correct. That happens. But there is more to what you are claiming. This pressure many times drives companies to be profitable and efficient."

So per the author there is some positive aspect associated to what the critics consider negative. Hence the author turns the critic into something positive.


(A) Describing a paradox that supports the author’s position
No paradox

(B) Asserting that one drawback of an approach is outweighed by countervailing considerations
per the author there is no draw back actually

(C) Rebutting an opposing position by suggesting an alternative explanation
Correct, the author sees the scenario that critics discuss in a different, more positive light.

(D) Discrediting an opposing argument by questioning its relevance
The author does not question the relevance.

(E) Characterizing an argument against a course of action instead as an argument in its favor
out of scope


----------------------------------------------------------------------------------------------------

It's a great day to be alive!



Found you posts really helpful. Thank you for such a thorough analysis of the answer choices. Please could you help me understand how exactly is (C) in Q4. correct? As you stated "So per the author there is some positive aspect associated to what the critics consider negative. Hence the author turns the critic into something positive." While the question stem says "Which of the following is LEAST accurate in characterizing the author’s method of argumentation "[/quote]






Going by your own analysis the answer should be D, I don't think you understood the question.

The answer id D IMO, I don't buy the OE
User avatar
Non-Human User
Joined: 01 Oct 2013
Posts: 17502
Own Kudos [?]: 868 [0]
Given Kudos: 0
Send PM
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
Re: One of the cornerstones of economic reform in the formerly Communist [#permalink]
Moderators:
GMAT Club Verbal Expert
6981 posts
GMAT Club Verbal Expert
236 posts
GRE Forum Moderator
14066 posts