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

It is currently 20 Nov 2018, 18:15

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
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • All GMAT Club Tests are Free and open on November 22nd in celebration of Thanksgiving Day!

     November 22, 2018

     November 22, 2018

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open November 22nd to celebrate Thanksgiving Day! Access will be available from 0:01 AM to 11:59 PM, Pacific Time (USA)
  • Free lesson on number properties

     November 23, 2018

     November 23, 2018

     10:00 PM PST

     11:00 PM PST

    Practice the one most important Quant section - Integer properties, and rapidly improve your skills.

Seventeenth-century philosopher John Locke stated that as much as 99

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

Hide Tags

Retired Moderator
User avatar
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 448
Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge
Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 30 Dec 2014, 01:10
4
9
Question 1
00:00
A
B
C
D
E

based on 616 sessions

61% (03:04) correct 39% (03:05) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 607 sessions

61% (00:44) correct 39% (00:42) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 576 sessions

85% (01:37) correct 15% (01:53) wrong

HideShow timer Statistics

Seventeenth-century philosopher John Locke stated that as much as 99 percent of the value of any useful product can be attributed to “the effects of labor.” For Locke’s intellectual heirs it was only a short step to the “labor theory of value,” whose formulators held that 100 percent of the value of any product is generated by labor (the human work needed to produce goods) and that therefore the employer who appropriates any part of the product’s value as profit is practicing theft.

Although human effort is required to produce goods for the consumer market, effort is also invested in making capital goods (tools, machines, etc.), which are used to facilitate the production of consumer goods. In modern economies about one-third of the total output of consumer goods is attributable to the use of capital goods. Approximately two-thirds of the income derived from this total output is paid out to workers as wages and salaries, the remaining third serving as compensation to the owners of the capital goods. Moreover, part of this remaining third is received by workers who are shareholders, pension beneficiaries, and the like. The labor theory of value systematically disregards the productive contribution of capital goods—a failing for which Locke must bear part of the blame.
According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

(A) Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.

(B) Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.

(C) Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.

(D) Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

(E) Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.




2. The author of the passage is primarily concerned with

(A) criticizing Locke’s economic theories

(B) discounting the contribution of labor in a modern economy

(C) questioning the validity of the labor theory of value

(D) arguing for a more equitable distribution of business profits

(E) contending that employers are overcompensated for capital goods



3. Which of the following arguments would a proponent of the labor theory of value, as it is presented in the first paragraph, be most likely to use in response to the statement that “The labor theory of value systematically disregards the productive contribution of capital goods”?

(A) The productive contributions of workers and capital goods cannot be compared because the productive life span of capital goods is longer than that of workers.

(B) The author’s analysis of the distribution of income is misleading because only a small percentage of workers are also shareholders.

(C) Capital goods are valuable only insofar as they contribute directly to the production of consumer goods.

(D) The productive contribution of capital goods must be discounted because capital goods require maintenance.

(E) The productive contribution of capital goods must be attributed to labor because capital goods are themselves products of labor.





Same Test with additional questions appeared in Verbal OG 2019: https://gmatclub.com/forum/seventeenth- ... 72482.html
Senior Manager
Senior Manager
avatar
Joined: 05 Nov 2012
Posts: 454
Concentration: Technology, Other
GMAT ToolKit User Premium Member Reviews Badge
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 20 Jun 2015, 08:25
3
Time Taken: 8 min 18 sec.
1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?
A. Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.
B. Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.
C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.
one-third of the total output of consumer goods is attributable to the use of capital goods. Approximately two-thirds of the income derived from this total output is paid out to workers as wages and salaries, the remaining third serving as compensation to the owners of the capital goods.
D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.
E. Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.

2. The author of the passage is primarily concerned with
A. criticizing Locke’s economic theories
B. discounting the contribution of labor in a modern economy
C. questioning the validity of the labor theory of value
D. arguing for a more equitable distribution of business profits
E. contending that employers are overcompensated for capital goods

3. Which of the following arguments would a proponent of the labor theory of value, as it is presented in the first paragraph, be most likely to use in response to the statement that “The labor theory of value systematically disregards the productive contribution of capital goods”?
A. The productive contributions of workers and capital goods cannot be compared because the productive life span of capital goods is longer than that of workers.
B. The author’s analysis of the distribution of income is misleading because only a small percentage of workers are also shareholders.
C. Capital goods are valuable only insofar as they contribute directly to the production of consumer goods.
D. The productive contribution of capital goods must be discounted because capital goods require maintenance.
E. The productive contribution of capital goods must be attributed to labor because capital goods are themselves products of labor.
Locke’s intellectual heirs it was only a short step to the “labor theory of value,” whose formulators held that 100 percent of the value of any product is generated by labor (the human work needed to produce goods)
Queens MBA Thread Master
avatar
Joined: 24 Oct 2012
Posts: 170
Concentration: Leadership, General Management
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 24 Jun 2015, 08:49
2
1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

Analysis : In second paragraph Author talks about total output of consumer good and it distribution. According to that

Investment : Capital Goods contribute 1/3 rd and Labor contribute 2/3rd.
Return : labor receive 2/3rd as wages and salaries. Owner of capital receive 1/3 rd and out of this 1/3rd. Owner of capital has to again give back to workers who are shareholders, pension beneficiaries, and the like


A. Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.
Incorrect as per the explanation above. Worker invest 2/3rd and received 2/3rd + something more.

B. Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.
Incorrect as Owners of capital goods invested 1/3rd and received 1/3rd - Share out to workers again.

C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.
Correct - Owners of capital goods invested 1/3rd and received 1/3rd - Share out to workers again.

D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.
Incorrect - not supported by passage.

E. Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.
Incorrect - labor theory talks about the contribution, never said anything about the distribution workers should receive



2. The author of the passage is primarily concerned with

Analysis : In first para author introduced labor theory and gave short description. In second para, author criticize the theory because of some loop hole.

A. criticizing Locke’s economic theories
Incorrect - Too vast to be correct. Locke’s economic theories can be many we just talk about one. Also, "Labor value theory" is not Locke’s theory. Locke's given idea and Labor theory is an extension of that idea.

B. discounting the contribution of labor in a modern economy
Incorrect - No such Philosophy is discussed anywhere in passage. author talks about contribution of labor and its value, has not discounted it.

C. questioning the validity of the labor theory of value
Correct - Author actually question the labor theory of value in second para. In first para, he introduced the Theory.

D. arguing for a more equitable distribution of business profits
Incorrect - Too narrow, Author never argued for equitable distribution. Author just presented the distribution pattern, never argued for the same.

E. contending that employers are overcompensated for capital goods
Incorrect - Too narrow. It is discussed in second para, moreover author took opposite stand.



3. Which of the following arguments would a proponent of the labor theory of value, as it is presented in the first paragraph, be most likely to use in response to the statement that “The labor theory of value systematically disregards the productive contribution of capital goods”?

Author's argument - The labor theory of value systematically disregards the productive contribution of capital goods

Possible weakner - what is author has miscalculated the labor contribution of capital goods. what if entire capital good is labor' contribution. then author conclusion is broken.

Only Option E matches the pre thought answer.
Senior Manager
Senior Manager
avatar
S
Joined: 07 Sep 2014
Posts: 371
Concentration: Finance, Marketing
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 12 Apr 2017, 01:56
1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.

D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

why not D?
Moreover, part of this remaining third is received by workers who are shareholders, pension beneficiaries, and the like.

Owners of capital goods are not fully compensated for their investment => This is what arguments wants to establish so far.
Director
Director
User avatar
G
Joined: 26 Oct 2016
Posts: 641
Location: United States
Concentration: Marketing, International Business
Schools: HBS '19
GMAT 1: 770 Q51 V44
GPA: 4
WE: Education (Education)
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 02 Jul 2017, 10:05
1
1)Let's take total output as 99. As per the statements given 1/3*99 = 33(Total output of consumer goods is attributable to the use of Capital Goods).
99*2/3 = 66(Wages + Salaries of workers).
Remaining third ---> 1/3*66 = 22(Compensation to the owners of capital goods).
Part of this remaining third ---> 1/3*22 = Random Value(Share Holders + Pension Beneficiaries + etc).
If you go by options one by one you can see option C matches above calculation. Hence C.
2)The author of the passage (whom I refer to as a he) is primarily concerned with
A. criticizing Locke’s economic theories
INCORRECT, for he only talks about his "effects of labor"
B. discounting the contribution of labor in a modern economy
A CONTENDER BUT INCORRECT, as his focus is not discounting the contribution of labor but rather counting the contribution of capital goods in production. This is evidenced by: "Although human effort is required to produce goods for the consumer market, effort is also invested in making capital goods"
C. questioning the validity of the labor theory of value
CORRECT, as he does exactly this in his conclusion:
"The labor theory of value (45) systematically disregards the productive contribution of capital goods a failing for which Locke must bear part of the blame. "
D. arguing for a more equitable distribution of business profits
INCORRECT, since there is no argument in favor of a more equitable distribution of profits, rather there are factual statements regarding how the profits are distributed.
E. contending that employers are overcompensated for capital goods
INCORRECT, nowhere in the passage is "over"compensation implied. only compensation.
Hence C.
3)Locke’s intellectual heirs it was only a short step to the “labor theory of value,” whose formulators held that 100 percent of the value of any product is generated by labor (the human work needed to produce goods). Hence E.
_________________

Thanks & Regards,
Anaira Mitch

VP
VP
User avatar
P
Status: Learning
Joined: 20 Dec 2015
Posts: 1084
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Reviews Badge
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post Updated on: 10 Jul 2017, 22:17
Imo C ,C,E
The only tough was question 1 but if read carefully the lines mentioned in the passage we would have no difficulty in answering that question.
Although human effort is required to produce goods for the consumer market, effort is also invested in making capital goods (tools, machines, etc.), which are used to facilitate the production of consumer goods. In modern economies about one-third of the total output of consumer goods is attributable to the use of capital goods. Approximately two-thirds of the income derived from this total output is paid out to workers as wages and salaries, the remaining third serving as compensation to the owners of the capital
goods.

1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?
A. Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.

B. Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.

C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods. Correct

D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

E. Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.
Thus it is clear that the income eceived by capital goods owners is not greater than the proportion of output attributable to the use of capital goods.
_________________

Please give kudos if you found my answers useful


Originally posted by arvind910619 on 02 Jul 2017, 22:44.
Last edited by arvind910619 on 10 Jul 2017, 22:17, edited 1 time in total.
Senior Manager
Senior Manager
avatar
S
Joined: 29 Jun 2017
Posts: 431
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 10 Jul 2017, 21:14
I am a non native speaker of English.
this passage is easy to read but the questions are hard and contain many close answers

easy passage, close answers.

in this scenario, we need to spend more time on answering questions. if we are hurry, we die.

so, whenever we see an easy passage, dont think we are in the victory already.
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2128
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 10 Dec 2017, 03:29
Took 5 mins 45 seconds , including 2 mins 40 seconds to read . All correct

1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

. In modern economies about one-third of the total output of consumer goods is attributable to the use of capital goods. Approximately two-thirds of the income derived from this total output is paid out to workers as wages and salaries, the remaining third serving as compensation to the owners of the capital goods.


C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods. -- Correct


2. The author of the passage is primarily concerned with

A. criticizing Locke’s economic theories -- Incorrect -- It only criticizes 1 theory -- Labor theory of value

B. discounting the contribution of labor in a modern economy -- Incorrect

C. questioning the validity of the labor theory of value - Correct - The labor theory of value systematically disregards the productive contribution of capital goods—a failing for which Locke must bear part of the blame.

D. arguing for a more equitable distribution of business profits - Incorrect -- the passage states that the distribution is fair

E. contending that employers are overcompensated for capital goods -- Incorrect


3. Which of the following arguments would a proponent of the labor theory of value, as it is presented in the first paragraph, be most likely to use in response to the statement that “The labor theory of value systematically disregards the productive contribution of capital goods”?

A. The productive contributions of workers and capital goods cannot be compared because the productive life span of capital goods is longer than that of workers.

B. The author’s analysis of the distribution of income is misleading because only a small percentage of workers are also shareholders.

C. Capital goods are valuable only insofar as they contribute directly to the production of consumer goods.

D. The productive contribution of capital goods must be discounted because capital goods require maintenance.

E. The productive contribution of capital goods must be attributed to labor because capital goods are themselves products of labor. -- Correct
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Manager
Manager
avatar
B
Joined: 03 Apr 2018
Posts: 84
Location: United Arab Emirates
GMAT 1: 700 Q49 V35
GPA: 4
GMAT ToolKit User Reviews Badge
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 08 Sep 2018, 11:06
5 mins 20 secs 2 correct

can someone explain me the 2nd question?
MBA Section Director
User avatar
D
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 1013
Concentration: Nonprofit
GPA: 4
WE: Engineering (Computer Software)
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 08 Sep 2018, 21:37
Bob2018 wrote:
5 mins 20 secs 2 correct

can someone explain me the 2nd question?


Bob2018

There were multiple explanations given in the above posts for question 2. Please go through them. If you still feel confused, please put down your analysis of the same and that will let us correct your analysis.

Thanks.
_________________

New project wSTAT(which Schools To Apply To?)

B-School app with GRE

New - RC Butler - 2 RC's everyday

Intern
Intern
avatar
B
Joined: 04 Aug 2018
Posts: 12
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 01 Oct 2018, 08:02
According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

(A) Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.

(B) Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.

(C) Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.

(D) Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

(E) Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.

I was confused between C & D. I went for D because the passage states "Moreover, part of this remaining third is received by workers who are shareholders, pension beneficiaries, and the like."

Can someone please clarify why we won't go for D.
GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2097
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 25 Oct 2018, 08:23
1
abrakadabra21 wrote:
1. According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.

D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

why not D?
Moreover, part of this remaining third is received by workers who are shareholders, pension beneficiaries, and the like.

Owners of capital goods are not fully compensated for their investment => This is what arguments wants to establish so far.

shubham21 wrote:
According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

(A) Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.

(B) Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.

(C) Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.

(D) Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

(E) Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.

I was confused between C & D. I went for D because the passage states "Moreover, part of this remaining third is received by workers who are shareholders, pension beneficiaries, and the like."

Can someone please clarify why we won't go for D.

You're right to recall where the passage states that owners pay part of their share to employee shareholders and pension beneficiaries.

However, choice (D) doesn't match this statement. Instead, choice (D) states:

    Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.

What's that? According to the passage, do owners pay out most of their share in the form of wages and benefits? Nope. This differs greatly from what's written in the passage, mixing up how the income is distributed.

That's why (D) is not supported by the passage, and that's why we eliminate it.

(C) remains a much better choice because if owners lose part of their 1/3 share of income, (C) is still a solid inference. Their share of income can still be no greater than the 1/3 share of output attributed to their capital goods.

So keep up that sharp reading, but don't forget to stay just as sharp when reading each answer choice.

I hope this is helpful!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

Manager
Manager
User avatar
S
Joined: 30 May 2018
Posts: 85
Concentration: General Management, Marketing
GMAT 1: 750 Q49 V45
GPA: 3.45
WE: Other (Retail)
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 25 Oct 2018, 23:09
anairamitch1804 wrote:
1)Let's take total output as 99. As per the statements given 1/3*99 = 33(Total output of consumer goods is attributable to the use of Capital Goods).
99*2/3 = 66(Wages + Salaries of workers).
Remaining third ---> 1/3*66 = 22(Compensation to the owners of capital goods).
Part of this remaining third ---> 1/3*22 = Random Value(Share Holders + Pension Beneficiaries + etc).
If you go by options one by one you can see option C matches above calculation. Hence C.
2)The author of the passage (whom I refer to as a he) is primarily concerned with
A. criticizing Locke’s economic theories
INCORRECT, for he only talks about his "effects of labor"
B. discounting the contribution of labor in a modern economy
A CONTENDER BUT INCORRECT, as his focus is not discounting the contribution of labor but rather counting the contribution of capital goods in production. This is evidenced by: "Although human effort is required to produce goods for the consumer market, effort is also invested in making capital goods"
C. questioning the validity of the labor theory of value
CORRECT, as he does exactly this in his conclusion:
"The labor theory of value (45) systematically disregards the productive contribution of capital goods a failing for which Locke must bear part of the blame. "
D. arguing for a more equitable distribution of business profits
INCORRECT, since there is no argument in favor of a more equitable distribution of profits, rather there are factual statements regarding how the profits are distributed.
E. contending that employers are overcompensated for capital goods
INCORRECT, nowhere in the passage is "over"compensation implied. only compensation.
Hence C.
3)Locke’s intellectual heirs it was only a short step to the “labor theory of value,” whose formulators held that 100 percent of the value of any product is generated by labor (the human work needed to produce goods). Hence E.


So When he says " Locke must bear part of the blame " , isnt he criticizing Locke and his economic theories here ? Wont A be the better answer option ? anyone?
_________________

Kudos if you agree , Comment if you don't !!!

GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2097
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Seventeenth-century philosopher John Locke stated that as much as 99  [#permalink]

Show Tags

New post 03 Nov 2018, 09:07
Arpitkumar wrote:
anairamitch1804 wrote:
1)Let's take total output as 99. As per the statements given 1/3*99 = 33(Total output of consumer goods is attributable to the use of Capital Goods).
99*2/3 = 66(Wages + Salaries of workers).
Remaining third ---> 1/3*66 = 22(Compensation to the owners of capital goods).
Part of this remaining third ---> 1/3*22 = Random Value(Share Holders + Pension Beneficiaries + etc).
If you go by options one by one you can see option C matches above calculation. Hence C.
2)The author of the passage (whom I refer to as a he) is primarily concerned with
A. criticizing Locke’s economic theories
INCORRECT, for he only talks about his "effects of labor"
B. discounting the contribution of labor in a modern economy
A CONTENDER BUT INCORRECT, as his focus is not discounting the contribution of labor but rather counting the contribution of capital goods in production. This is evidenced by: "Although human effort is required to produce goods for the consumer market, effort is also invested in making capital goods"
C. questioning the validity of the labor theory of value
CORRECT, as he does exactly this in his conclusion:
"The labor theory of value (45) systematically disregards the productive contribution of capital goods a failing for which Locke must bear part of the blame. "
D. arguing for a more equitable distribution of business profits
INCORRECT, since there is no argument in favor of a more equitable distribution of profits, rather there are factual statements regarding how the profits are distributed.
E. contending that employers are overcompensated for capital goods
INCORRECT, nowhere in the passage is "over"compensation implied. only compensation.
Hence C.
3)Locke’s intellectual heirs it was only a short step to the “labor theory of value,” whose formulators held that 100 percent of the value of any product is generated by labor (the human work needed to produce goods). Hence E.


So When he says " Locke must bear part of the blame " , isnt he criticizing Locke and his economic theories here ? Wont A be the better answer option ? anyone?

(A) is not the better option because criticizing Locke is not the main reason the author wrote this passage.

Remember that "main purpose" and "primarily concerned with" questions are not asking us to pick a choice that is true. Instead, this question type challenges us to understand why the author wrote the whole thing. We want to know: What's the point of the passage?

In this case, the author spends one paragraph explaining the labor theory of value and one paragraph taking down that theory. The passage is structured so the author can present a quantitative argument that debunks the theory on its own terms. Disapproval of Locke, who is mentioned as a kind of forefather of this theory, is simply a bonus.

I hope this helps!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

GMAT Club Bot
Re: Seventeenth-century philosopher John Locke stated that as much as 99 &nbs [#permalink] 03 Nov 2018, 09:07
Display posts from previous: Sort by

Seventeenth-century philosopher John Locke stated that as much as 99

  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®.