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# Sample Practice Questions!

Author Message
Current Student
Joined: 02 Dec 2009
Posts: 221

Kudos [?]: 145 [2], given: 22

Location: Chicago, IL
Schools: University of Michigan Ross/SNRE (Erb Institute)

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07 Jul 2010, 15:34
2
KUDOS
5
This post was
BOOKMARKED
00:00

Difficulty:

95% (hard)

Question Stats:

43% (01:47) correct 57% (02:01) wrong based on 432 sessions

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Hey GMATClubbers!
I'm going to be posting several sample questions in each verbal category. In addition to answers, any feedback would be appreciated. Too easy? Too unclear? Just right? Whatever you think! Thanks!

1. Most countries have run up historic deficits. While this has helped save public-sector jobs, there has not been much private-sector improvement. Government spending is a weak counter to economic cycles. Monetary policy is the only strong tool we have.

Which of the following facts best supports the author’s hypothesis?

(a) According to a historical survey, countries with smaller deficits have more stable long-term economies.
(b) A state that carefully regulates private-sector economic activity has continually seen statewide job growth, despite the country’s deficit.
(c) Public-sector jobs are far more plentiful and lucrative than private-sector jobs.
(d) During past periods of economic duress, government expenditures have bolstered prosperity.
(e) Enacting new fiscal policies requires vast monetary resources, often resulting in increased governmental debt.
[Reveal] Spoiler: OA

Kudos [?]: 145 [2], given: 22

Senior Manager
Joined: 24 Jul 2009
Posts: 287

Kudos [?]: 171 [0], given: 0

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08 Jul 2010, 07:07
conmisdosmanos wrote:
Hey GMATClubbers!
I'm going to be posting several sample questions in each verbal category. In addition to answers, any feedback would be appreciated. Too easy? Too unclear? Just right? Whatever you think! Thanks!

1. Most countries have run up historic deficits. While this has helped save public-sector jobs, there has not been much private-sector improvement. Government spending is a weak counter to economic cycles. Monetary policy is the only strong tool we have.

Which of the following facts best supports the author’s hypothesis?

(a) According to a historical survey, countries with smaller deficits have more stable long-term economies.>>> Does not supports the argument
(b) A state that carefully regulates private-sector economic activity has continually seen statewide job growth, despite the country’s deficit. >>> Correct
(c) Public-sector jobs are far more plentiful and lucrative than private-sector jobs.>>> Does not support.
(d) During past periods of economic duress, government expenditures have bolstered prosperity.>>> Never said. Out of scope
(e) Enacting new fiscal policies requires vast monetary resources, often resulting in increased governmental debt.>>> No discussion on "what resulted in increased governmental debt ". Out of scope

Conclusion is : Only strong Monetary policy is a counter to economic cycles.

Found it bit tricky..IMO B

Kudos [?]: 171 [0], given: 0

Intern
Joined: 06 Jan 2015
Posts: 17

Kudos [?]: [0], given: 42

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29 Jan 2015, 02:05
Can anybody explain? Do we need prior subject knowledge to answer this question?

I am quite blank about how B supports the conclusion "monetary policy is the strongest tool to counter economic cycles."

Kudos [?]: [0], given: 42

Non-Human User
Joined: 01 Oct 2013
Posts: 10145

Kudos [?]: 270 [0], given: 0

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28 Mar 2016, 10:12
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).

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Kudos [?]: 270 [0], given: 0

Board of Directors
Joined: 17 Jul 2014
Posts: 2672

Kudos [?]: 431 [0], given: 200

Location: United States (IL)
Concentration: Finance, Economics
GMAT 1: 650 Q49 V30
GPA: 3.92
WE: General Management (Transportation)

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21 Oct 2016, 07:24
what is the source of this question?
any OE?

Kudos [?]: 431 [0], given: 200

Intern
Joined: 26 Jun 2016
Posts: 21

Kudos [?]: 5 [0], given: 262

Location: Viet Nam
Concentration: Finance, Entrepreneurship
GMAT 1: 580 Q48 V23
GPA: 3.25

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06 Feb 2017, 00:24
Is it because: the hypothesis: there has not been much private-sector improvement ->Does this mean the private-sector could be improved, but not much?
Thank you.

Kudos [?]: 5 [0], given: 262

Verbal Expert
Joined: 14 Dec 2013
Posts: 3197

Kudos [?]: 3500 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)

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07 Feb 2017, 12:45
Hientran48 wrote:
Is it because: the hypothesis: there has not been much private-sector improvement ->Does this mean the private-sector could be improved, but not much?
Thank you.

Since "private-sector economic activity" does not necessarily mean "monetary policy", I feel that B cannot be a valid answer. This question seems to be from an unauthentic source.

Kudos [?]: 3500 [0], given: 22

Re: Sample Practice Questions!   [#permalink] 07 Feb 2017, 12:45
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# Sample Practice Questions!

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