Last visit was: 18 May 2024, 11:32 It is currently 18 May 2024, 11:32
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:
Difficulty: 655-705 Level,    Business,    Long Passage,                
Show Tags
Hide Tags
Intern
Intern
Joined: 27 Jun 2020
Posts: 24
Own Kudos [?]: 2 [0]
Given Kudos: 38
Send PM
VP
VP
Joined: 14 Aug 2019
Posts: 1373
Own Kudos [?]: 848 [2]
Given Kudos: 381
Location: Hong Kong
Concentration: Strategy, Marketing
GMAT 1: 650 Q49 V29
GPA: 3.81
Send PM
Senior Manager
Senior Manager
Joined: 30 Jun 2019
Posts: 275
Own Kudos [?]: 90 [0]
Given Kudos: 8
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
I'm curious about question 3 and 5.

For 3:
I don't see how the example provided is actually an "example of the productivity paradox" and not "an example of an industry that did not stagnate during the 1980s"
The prompt specifically states that growth went from 2.5% to 1.1%, which means that it's still growing. It didn't literally stagnate or decrease, as the productivity paradox would suggest.

For 5:
I don't see how this is contrasting views. Where is the contrast happening? T
The prompt makes a statement about the productivity paradox, provides an example of an industry that adopted IT, and then attempts to strengthen why IT may have been a good choice.
A contrast implies that there are two opposing views going on, but I don't see that happening anywhere. Just because there was one sentence out of like 15 that said "people think IT may not be good" is therefore grounds that the ENTIRE paragraph constitutes a contrast of opinions?
Retired Moderator
Joined: 05 May 2016
Posts: 789
Own Kudos [?]: 687 [0]
Given Kudos: 1316
Location: India
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
fireagablast wrote:
I'm curious about question 3 and 5.

For 3:
I don't see how the example provided is actually an "example of the productivity paradox" and not "an example of an industry that did not stagnate during the 1980s"
The prompt specifically states that growth went from 2.5% to 1.1%, which means that it's still growing. It didn't literally stagnate or decrease, as the productivity paradox would suggest.

For 5:
I don't see how this is contrasting views. Where is the contrast happening? T
The prompt makes a statement about the productivity paradox, provides an example of an industry that adopted IT, and then attempts to strengthen why IT may have been a good choice.
A contrast implies that there are two opposing views going on, but I don't see that happening anywhere. Just because there was one sentence out of like 15 that said "people think IT may not be good" is therefore grounds that the ENTIRE paragraph constitutes a contrast of opinions?



Hi fireagablast,
Below replies by expert might help here:

Question 3:
https://gmatclub.com/forum/most-pre-1990-literature-on-businesses-use-of-information-technology-16566-20.html#p2593648

Question 5
https://gmatclub.com/forum/most-pre-1990-literature-on-businesses-use-of-information-technology-16566-20.html#p2704782


Let us know if you still have doubts.
Thanks.
Manager
Manager
Joined: 31 Jan 2020
Posts: 231
Own Kudos [?]: 14 [0]
Given Kudos: 139
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
Dear Experts,

8. According to the passage, the recent study of retail firms discussed in the second paragraph (lines 33???63) best supports which of the following assessments of IT's potential?

A. Even when IT gives a firm a temporary competitive advantage, that firm is unlikely to continue to achieve productivity gains.
B. The competitive advantages conferred by a firm's introduction of IT are outweighed by IT's development costs.
C. A firm's introduction of IT is less likely to limit its ability to achieve productivity gains than to enhance that ability.
D. Although IT by itself is unlikely to give a firm a competitive advantage, IT combined with other resources may do so.
E. Although IT by itself is unlikely to give a firm a competitive advantage, a firm that does not employ IT cannot achieve a competitive advantage.

From the passage :
"According to a recent study of retail firms, which confirmed that IT has become pervasive and relatively easy to acquire, IT by itself appeared to have conferred little advantage."

IT by itself appeared to
have conferred little advantage

>>>(A) Even when IT gives a firm a temporary competitive advantage, that firm is unlikely to continue to achieve productivity gains.

Why A is wrong.
GMAT Club Verbal Expert
Joined: 13 Aug 2009
Status: GMAT/GRE/LSAT tutors
Posts: 6929
Own Kudos [?]: 63916 [1]
Given Kudos: 1789
Location: United States (CO)
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

GRE 2: Q170 V170
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
1
Kudos
Expert Reply

Question 8


Tanchat wrote:
Dear Experts,

8. According to the passage, the recent study of retail firms discussed in the second paragraph (lines 33???63) best supports which of the following assessments of IT's potential?

A. Even when IT gives a firm a temporary competitive advantage, that firm is unlikely to continue to achieve productivity gains.
B. The competitive advantages conferred by a firm's introduction of IT are outweighed by IT's development costs.
C. A firm's introduction of IT is less likely to limit its ability to achieve productivity gains than to enhance that ability.
D. Although IT by itself is unlikely to give a firm a competitive advantage, IT combined with other resources may do so.
E. Although IT by itself is unlikely to give a firm a competitive advantage, a firm that does not employ IT cannot achieve a competitive advantage.

From the passage :
"According to a recent study of retail firms, which confirmed that IT has become pervasive and relatively easy to acquire, IT by itself appeared to have conferred little advantage."

IT by itself appeared to
have conferred little advantage

>>>(A) Even when IT gives a firm a temporary competitive advantage, that firm is unlikely to continue to achieve productivity gains.

Why A is wrong.

Let's start by considering the main points of the second paragraph:

  • Some observers raised this question: if IT conferred economic value, why did it fail to produce "direct competitive advantages"?
  • One explanation is that competitive advantages arise from accumulating "scarce" resources that are hard to acquire. Since IT is neither scarce nor hard to acquire, it should not confer a competitive advantage on its own.
  • The above explanation is supported with an example -- specifically, while IT alone did not confer a competitive advantage, some firms did gain a competitive advantage when they merged IT with complementary resources such as human resources.

Let's now consider Question 8:

Quote:
8. According to the passage, the recent study of retail firms discussed in the second paragraph (lines 33–63) best supports which of the following assessments of IT's potential?

A. Even when IT gives a firm a temporary competitive advantage, that firm is unlikely to continue to achieve productivity gains.

The study described in the second paragraph supports the idea that IT on its own did NOT confer a competitive advantage -- not even a temporary one. Eliminate (A).

Quote:
D. Although IT by itself is unlikely to give a firm a competitive advantage, IT combined with other resources may do so.

The passage tells us that when IT was merged with "complementary resources" like "human resources," it conferred a competitive advantage. Since (D) lines up with this fact, it's correct.

I hope that helps!
Manager
Manager
Joined: 18 Feb 2021
Posts: 100
Own Kudos [?]: 17 [0]
Given Kudos: 129
Location: India
Schools: IIMC
GMAT Focus 1:
635 Q88 V79 DI77
GPA: 7.98
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
Hi experts
I want to understand in detail as why option C is the right answer choice for Q1 ? I have marked ans C as I felt that the author was more inclined towards providing a solution to the apparent paradox, rather than providing a different opinion ( as in B).
At the same time, the author did put forward a theory ( the beliefs of a particular community regarding technology in business in 1980s). He mentioned the point of the people who actually advocated this belief and then finally he mentioned a differing view, which in turn, resolves the paradox.
Is my analysis correct or there is something else to this that I should keep in mind ?
Thanks
Manhattan Prep Instructor
Joined: 22 Mar 2011
Posts: 2658
Own Kudos [?]: 7790 [1]
Given Kudos: 56
GMAT 2: 780  Q50  V50
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
1
Kudos
Expert Reply
anish777

The most important thing here is that, as you've said, C more accurately describes the purpose of the passage. However, we can also eliminate B as definitively wrong. First, it's not clear that anything in paragraph 1 constitutes a theory. The first sentence just says that people were optimistic, and from there the passage dives into the central problem. As for the second part, it isn't an opposing view to the optimism in p1. Rather, it's an explanation of the paradox that cropped up.

Make sure that your criteria for selection go beyond "I can find a part of the passage that seems to fit with this." Rather, the real question is "Does this accurately describe the scope and intent of the passage?" Ideally, the right answer sounds like something you would have predicted (or did predict!), even if it uses different language than you would choose.
Senior Manager
Senior Manager
Joined: 17 Sep 2016
Posts: 439
Own Kudos [?]: 85 [0]
Given Kudos: 147
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
avigutman, AndrewN,MartyTargetTestPrep , RonTargetTestPrep
dear experts,
I can understand B is the correct , but I am not sure what's wrong with A,

in the passage:
despite huge IT investments, most notably in the service sectors, productivity stagnated.

Does it mean productivity did not increase?

appreciate your help.

thanks in advance.
Volunteer Expert
Joined: 16 May 2019
Posts: 3512
Own Kudos [?]: 6895 [1]
Given Kudos: 500
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
1
Kudos
Expert Reply
zoezhuyan wrote:
avigutman, AndrewN,MartyTargetTestPrep , RonTargetTestPrep
dear experts,
I can understand B is the correct , but I am not sure what's wrong with A,

in the passage:
despite huge IT investments, most notably in the service sectors, productivity stagnated.

Does it mean productivity did not increase?

appreciate your help.

thanks in advance.

Hello, zoezhuyan. It has been a while. For some reason, your query came through the general Request Expert Reply portal, not through a mention. Also, RonTargetTestPrep is no longer linked with an account. All of that said, I am unsure what question you may be referencing at the top of your post. However, I will say that stagnated in the context of the sentence you quoted does mean did not increase. The word has a negative connotation, as though something bad or unforeseen has prevented a positive anticipated or potential outcome from occurring. Here, the huge IT investments would have been expected to lead to increased productivity, but that, apparently, was not what happened.

If you are still hanging around the forum, good luck with your continued studies.

- Andrew
Senior Manager
Senior Manager
Joined: 17 Sep 2016
Posts: 439
Own Kudos [?]: 85 [1]
Given Kudos: 147
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
1
Kudos
AndrewN wrote:
Hello, zoezhuyan. It has been a while. For some reason, your query came through the general Request Expert Reply portal, not through a mention. Also, RonTargetTestPrep is no longer linked with an account. All of that said, I am unsure what question you may be referencing at the top of your post.



AndrewN,thanks so much, Andrew.
I will pay more attention.

Quote:
The author of the passage implies that toward the end of the 1980s, some economists described which of the following as a “productivity paradox” (see line 8)?

A. Investments in IT would not result in increases in productivity until the 1990s.
B. Investments in IT did not lead to expected gains in productivity.
C. Productivity in the retail industry rose less rapidly than did productivity in other industries.
D. The gains in productivity due to the introduction of IT were not reflected in macroeconomic measures of productivity.
E. Most gains in productivity occurred in the service sector and were therefore particularly difficult to measure.

RC38000-07.02

Don't you think stagnate mean the productivity kept the same? so the productivity did not increase?
Intern
Intern
Joined: 21 Dec 2021
Posts: 1
Own Kudos [?]: 1 [0]
Given Kudos: 1
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
Can someone pls help me with Q5? GMATNinja mikemcgarry
I narrowed it down to D and E, ended up choosing D but the OA is E.

D. It demonstrates the effect IT has had on productivity.
I chose this option because it did tell us the effect that IT had on productivity. The passage tells us that incorporation of IT didn't lead to higher productivity.
Another reason for choosing this option was that this one-liner opens the gate to the second paragraph directly [atleast more so than (E), or so I felt].

E. It contrasts views concerning the degree of IT's success.
I didn't choose this option mainly because of the last part - "degree of IT's success". I couldn't find any evidence saying that people are arguing about HOW MUCH incorporation of IT helped increase productivity. It's just the opponents who said that that IT didn't, and the proponents who said that IT did. I don't see how "how much" comes into the picture.
Also, I felt that this option doesn't relate directly with the next paragraph, which talks about why IT didn't produce direct competitive advantages to firms.
Manager
Manager
Joined: 23 May 2023
Posts: 62
Own Kudos [?]: 31 [0]
Given Kudos: 305
Location: India
Concentration: Real Estate, Sustainability
GPA: 3.7
WE:Other (Other)
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
Can someone please explain the reasoning for question 6
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 14030
Own Kudos [?]: 33850 [0]
Given Kudos: 5797
GPA: 3.62
Send PM
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
Expert Reply
Dumsy_1711 wrote:
Can someone please explain the reasoning for question 6


Explained here

https://gmatclub.com/forum/most-pre-199 ... l#p2593649

Cheers
GMAT Club Bot
Re: Most pre-1990 literature on businesses' use of information technology [#permalink]
   1   2   3 
Moderators:
GMAT Club Verbal Expert
6929 posts
GMAT Club Verbal Expert
238 posts
GRE Forum Moderator
14030 posts