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The argument for “monetizing”—or putting a monetary value on—ecosystem

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The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post Updated on: 28 Jun 2018, 20:19
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GMAT® Official Guide 2018

Practice Question
Question No.:
Online test bank question number : RC00344-02 ~ RC00344-06

The argument for “monetizing”—or putting a monetary value on—ecosystem functions may be stated thus: Concern about the depletion of natural resources is widespread, but this concern, in the absence of an economic argument for conservation, has not translated into significant conservational progress. Some critics blame this impasse on environmentalists, whom they believe fail to address the economic issues of environmental degradation. Conservation can appear unprofitable when compared with the economic returns derived from converting natural assets (pristine coastlines, for example) into explicitly commercial ones (such as resort hotels). But according to David Pearce, that illusion stems from the fact that “services” provided by ecological systems are not traded on the commodities market, and thus have no readily quantifiable value. To remedy this, says Pearce, one has to show that all ecosystems have economic value—indeed, that all ecological services are economic services. Tourists visiting wildlife preserves, for example, create jobs and generate income for national economies; undisturbed forests and wetlands regulate water runoff and act as water-purifying systems, saving millions of dollars worth of damage to property and to marine ecosystems. In Gretchen Daily’s view, monetization, while unpopular with many environmentalists, reflects the dominant role that economic considerations play in human behavior, and the expression of economic value in a common currency helps inform environmental decision-making processes.

(Book Question: 415)
1. Information in the passage suggests that David Pearce would most readily endorse which of the following statements concerning monetization?

(A) Monetization represents a strategy that is attractive to both environmentalists and their critics.

(B) Monetization is an untested strategy, but it is increasingly being embraced by environmentalists.

(C) Monetization should at present be restricted to ecological services and should only gradually be extended to such commercial endeavors as tourism and recreation.

(D) Monetization can serve as a means of representing persuasively the value of environmental conservation.

(E) Monetization should inform environmental decision-making processes only if it is accepted by environmentalist groups.


(Book Question: 416)
2. Which of the following most clearly represents an example of an “ecological service” as that term is used in line 20?

(A) A resort hotel located in an area noted for its natural beauty

(B) A water-purifying plant that supplements natural processes with nontoxic chemicals

(C) A wildlife preserve that draws many international travelers

(D) A nonprofit firm that specializes in restoring previously damaged ecosystems

(E) A newsletter that keeps readers informed of ecological victories and setbacks



(Book Question: 417)
3. According to the passage, Daily sees monetization as an indication of which of the following?

(A) The centrality of economic interests to people’s actions

(B) The reluctance of the critics of environmentalism to acknowledge the importance of conservation

(C) The inability of financial interests and ecological interests to reach a common ideological ground

(D) The inevitability of environmental degradation

(E) The inevitability of the growth of ecological services in the future


(Book Question: 418)
4. Which of the following can be inferred from the passage concerning the environmentalists mentioned in line 8?

(A) They are organized in opposition to the generation of income produced by the sale of ecological services.

(B) They are fewer in number but better organized and better connected to the media than their opponents.

(C) They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.

(D) They have been in the forefront of publicizing the extent of worldwide environmental degradation.

(E) They define environmental progress differently and more conservatively than do other organized groups of environmentalists.


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Originally posted by AbdurRakib on 14 Jun 2017, 03:23.
Last edited by hazelnut on 28 Jun 2018, 20:19, edited 4 times in total.
Reformatted question, fixed typos
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 15 Jun 2017, 06:24
1
Please comment on personal explanation:
1. D. Monetization can serve as a means of representing persuasively the value of environmental conservation.
Explanation:
But according to David Pearce, that illusion stems from the fact that “services” provided by ecological systems are not traded on the commodities market, and thus have no readily quantifiable value. To remedy this, says Pearce, one has to show that all ecosystems have economic value—indeed, that all ecological services are economic services.

2. C A wildlife preserve that draws many international travelers
Explanation: one has to show that all ecosystems have economic value.

3. A The centrality of economic interests to people’s actions
Explanation: In Gretchen Daily’s view, monetization, while unpopular with many environmentalists, reflects the dominant role that economic considerations play in human behavior, and the expression of economic value in a common currency helps inform environmental decision-making processes.
ie. economic interest = economic considerations; human behavior = people's action

4. C They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.
Explanation: Some critics blame this impasse on environmentalists, whom they believe fail to address Conservation can appear unprofitable when compared with the economic returns derived from converting natural assets (pristine coastlines, for example) into explicitly commercial ones (such as resort hotels).
ie. Critics say environmentalists did not consider Conservation can appear unprofitable when compared with economic returns derived from converting natural assets into explicitly commercial ones. ---> Critics questions environmentalists strategy
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 27 Jun 2017, 10:27
AbdurRakib: Bro the passage is incomplete. Line 10 is surely missing some words, since it's not making any sense.
Kindly update the passage.

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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 27 Jun 2017, 10:33
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 28 Jun 2017, 08:16
3
gmatexam439 wrote:
And someone explain me 4th question. I got it wrong.


Hello, I remember I used to chat with you in chat box hehe :D

I've just tried this one and got all 4 correct. Hope my sharing will help.

Q4. Which of the following can be inferred from the passage concerning the environmentalists mentioned in line 8?

Spot some sentences surrounding "environmentalists" in line 8, especially look carefully at the sentence including that word.

"Concern about the depletion of natural resources is widespread, but this concern, in the absence of an economic argument for conservation, has not translated into significant conservational progress. Some critics blame this impasse on environmentalists, whom they believe fail to address the economic issues of environmental degradation. Conservation can appear unprofitable when compared with the economic returns derived from converting natural asset(pristine coastlines, for example) into explicitly commercial ones (such as resort hotels)."

--> I believe that we may not need the missed line "the economic issues of environmental degradation" to answer, because in fact, I did got the question right without that information. Still, I searched on google and found the missing piece as above for your reference.

Summary of the above sentences: natural resources' depletion... lots of people know it .... but conservation is difficult without economics-related support... Environmentalists are blamed for the problem, because they fail to address "something". The following sentence "Conservation can appear unprofitable..." gives more details about "something". Information about conservation in that last sentence sounds quite negative, so I guessed that "something" is an obstacle in environmental conservation.

Now move on to 5 options

A. They are organized in opposition to the generation of income produced by the sale of ecological services.
Totally wrong. Nowhere in the passage could we infer that environmentalists in line 8 go against someone/something. Hence, "income produced by the sale of ecological services" is mentioned later at the end of the passage, in which many environmentalists are unfamiliar to it, rather than oppose it. OUT.

B. They are fewer in number but better organized and better connected to the media than their opponents.
Out of scope. Nothing related to number, manner of organization and connection to media of both environmentalists and their opponents could be inferred from the passage. OUT.

C. They have sometimes been charged with failing to use a particular strategy in their pursuit of conservational goals.
Yes, this is the same as the above reasoning. Their opponents accuse environmentalists of conversational deadlock, for the reason that environmentalists do not deal with the problem/obstacle that is explained in the sentence "Conservation can appear unprofitable......" CORRECT!

D. They have been in the forefront of publicizing the extent of worldwide environmental degradation.
Such a distortion. Environmental degradation issue is spread widely - Yes! But we definitely cannot infer that environmentalists lead this effort. Environmentalists are mentioned only as causing standstill situation of conservation. OUT.

E. They define environmental progress differently and more conservatively than do other organized groups of environmentalists.
Neither "other organized groups of environmentalists" nor "definition of environmental progress" is discussed in the passage. Thus, the above information cannot be inferred. OUT.

The above is just my personal reasoning. Willing to hear your comment(s), if any. Thanks!
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 28 Jun 2017, 08:40
Lucy Phuong wrote:
Hello, I remember I used to chat with you in chat box hehe :D

The above is just my personal reasoning. Willing to hear your comment(s), if any. Thanks!


Hello bro, i too remember working out on many questions in the chatroom with u. :-D It is fun to have a healthy discussion to clear out any tiny bit of doubt.

I didn't understand before your explanation that "failing to use a particular strategy" referred back to "fail to address the economic issues". I guess after reading your explanation it makes sense. I was unable to comprehend the "particular strategy".

Thank you so much for this detailed overview of the question.

Let me know in case you need any sort of help.
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 28 Jun 2017, 19:02
gmatexam439 wrote:
Lucy Phuong wrote:
Hello, I remember I used to chat with you in chat box hehe :D

The above is just my personal reasoning. Willing to hear your comment(s), if any. Thanks!


Hello bro, i too remember working out on many questions in the chatroom with u. :-D It is fun to have a healthy discussion to clear out any tiny bit of doubt.

I didn't understand before your explanation that "failing to use a particular strategy" referred back to "fail to address the economic issues". I guess after reading your explanation it makes sense. I was unable to comprehend the "particular strategy".

Thank you so much for this detailed overview of the question.

Let me know in case you need any sort of help.


Hi,

Glad that it helps. :D Yes I will contact you for help if needed.

Cheers,
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 30 Jun 2017, 00:15
Completely stumped on this passage. What could be the difficulty level ? Any idea
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 01 Jul 2017, 00:15
Imo
1)D
2)C
3)A
4)C
Took 8 minutes to complete the passage .
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 06 Jul 2017, 08:53
Nice and easy passage. All correct in 6min 36 secs.

IMO its a 600-700 level passage.
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 06 Jul 2017, 15:09
Hi - For the below question, i selected A but the OA was C.

Question : why isnt A the right answer ? The following reason is why i picked "A"

wording in passage " according to David Pearce, that illusion stems from the fact that “services” provided by ecological systems are not traded on the commodities market,and thus have no readily quantifiable value"..........


Did not like C because counting the international visitors is quantifiable ...hence eliminated C..

In A, the impact of the good location on the hotel is not countable ...

Thoughts ?

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

Which of the following most clearly represents an example of an “ecological service” as that term is used in line 20?

A. A resort hotel located in an area noted for its natural beauty
B. A water-purifying plant that supplements natural processes with nontoxic chemicals
C. A wildlife preserve that draws many international travelers
D. A nonprofit firm that specializes in restoring previously damaged ecosystems
E. A newsletter that keeps readers informed of ecological victories and setbacks
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 07 Jul 2017, 06:55
1
jabhatta@umail.iu.edu wrote:
Hi - For the below question, i selected A but the OA was C.

Question : why isnt A the right answer ? The following reason is why i picked "A"

wording in passage " according to David Pearce, that illusion stems from the fact that “services” provided by ecological systems are not traded on the commodities market,and thus have no readily quantifiable value"..........


Did not like C because counting the international visitors is quantifiable ...hence eliminated C..

In A, the impact of the good location on the hotel is not countable ...

Thoughts ?

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

Which of the following most clearly represents an example of an “ecological service” as that term is used in line 20?

A. A resort hotel located in an area noted for its natural beauty
B. A water-purifying plant that supplements natural processes with nontoxic chemicals
C. A wildlife preserve that draws many international travelers
D. A nonprofit firm that specializes in restoring previously damaged ecosystems
E. A newsletter that keeps readers informed of ecological victories and setbacks


Hi,

It would really help if you look closely at the sentence following your cited one:
"To remedy this, says Pearce, one has to show that all ecosystems have economic value—indeed, that all ecological services are economic services."

--> The "quantifiable value" should be understood from economics perspective. Frankly speaking, it's all about money.

C. A wildlife preserve that draws many international travelers
--> "Tourists visiting wildlife preserves, for example, create jobs and generate income for national economies;" In order to facilitate good services for tourists, many companies specializing in transportation, tour guides and other kinds will emerge, thus creating jobs and generating income for national economies... These economic values cannot be realized immediately, but rather in the long-run. CORRECT

Regarding why option (A) is wrong:

A. A resort hotel located in an area noted for its natural beauty
--> Yes, I agree with you that "In A, the impact of the good location on the hotel is not countable ..." as you said; however, the option should be understood as: "A resort hotel......[modifier]......" most clearly represents an example of an “ecological service”. In other words, "resort hotel", instead of "natural beauty" of its location, is the example this option suggests. As you may know, "resort hotel" is not an "ecosystems". OUT.

The above is just my personal thought. I'm not sure how OG explains the correct answer, so you can read OG for clarification.
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 17 Nov 2017, 12:00
Time Taken - 8 mins 56 secs

Got 3/4 correct.
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 25 Nov 2017, 11:39
I have taken 2mins:15secs to read and write the point of the passage:

I took
110secs - 1st Q - Wrong
70 secs - 2nd Q - Wrong
75 secs - 3rd Q - Right
12 secs - 4th Q - Wrong

The accuracy you see above tells you that I'm not an expert on the Topic. But this is what my analysis of my shortcoming:
Mistake#1:
Reading the passage: Thinking about reading the whole passage in 2mins kills the comprehension ability, I skim all the important decision points. Because of which, I have a different story about the passage in my head.

Q1: This is an inference Question
The context of the passage which you need to know to answer this Q lies between line 15 and 25.
Analysis: Monetization has to elements in it, they are Environment and Economical benefits. So, Our Buddy David believes that Monetization is an environmental conservation strategy and it is difficult to prove the economic benefit of it. So, we should somehow to link this strategy to an economic benefit. And David give two examples to explain the same idea to dumb people like me, who don't understand complex structured sentences.

B- Nowhere in the whole passage, we see testing or not testing a strategy - Eliminate
C- This is complete crap because David told that we have to link the Environmental strategy like monetization to commercial benefits, but this choice talks about restricting to only ecological service. Moreover, GMAT authors think we test takers are idiots and add so heard words like tourism and recreation. Dumbasses like me chose this choice. Like I did, because of the wordings.
E- This choice is a clear NO because David's idea was to portray the ecological goals to commercial benefits - Eliminate

Two devil choices: D Vs A:
A is good till the environmentalists but fails to reference indicate who are these Critics. We generally tend to think critics are opponents to Environmentalists, that not the case. A group of critics may comprise of Environmentalists and Economists. - Eliminate;

D- Correct.


Q2: This is a Specific Details Question
Read line 19 to 20 quickly to get the taste of what is being tested there. So, David believes that Services are ecological only when they provide economic benefits.

A- We are not sure, what is happening with this hotel, is it operating? People prefer to visit that? Are people working? No answers to these questions. - Eliminated
B- See the above reasons mentioned for A, the choices B C E, are all same with a different type of businesses, we are 100% sure that these businesses provide any economic/commercial benefits. Screw them - Eliminated.

But Choice D answers perfectly, Wildlife preserves- preserves wildlife = Environmental benefits & attracts tourist = Commerical benefit. Cool... This is the answer.



Q3: According to the passage,...... ---> Specific Q.
There are two steps to perform to answer a specific Question,
Step1: Find the context, read the lines in the passage.
Step2: Answer choice you choose should comprehend the same as what you comprehended in step1

So, here Context is Daily's idea about monetization. It is easy to locate Names in the passage, with that you can see last 5 lines would be the place to have to read and comprehend.
Frankly speaking, I could comprehend 100% of Daily's idea, but what I could get is the monetization effects human behavior.So, answer choice that talks about human behavior is A.

Q4: This is again an inference Q
Read the line 8 to get the context. My comprehension is that some critics blame environmentalists for the strategy of monetization is not have shown any improvement in conservation.
Hunting down the answers:
A- There is no income or financial aspect happened between some critics and environmentalists - Eliminated
B- We don't know about the number that group- Eliminated
D- We don't know who is the front seat and who is at the back - Eliminated
E - This talks about 'Groups' of environmentalists, can you name two names of groups- No then Eliminate this choice

C- references the right spot that Environmentalists sometimes need to take the blame because they might sometimes fail on strategies. - Correct


If you enjoyed and learned from my analysis-Good, but please point out any errors in my analysis. At the end of the day that is what matters the most, LEARNING NEW STUFF.
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 07 Dec 2017, 05:12
Please remove the 700 level tag. This passage is sub-600
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 07 Dec 2017, 10:18
Q4: Enviromentalists are wrong because they fail to conider the fact that conserving natural assets can also have economic value which may be as significant as the profits derived from commercial ventures like resorts. am i right on this?
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 07 Dec 2017, 10:23
Q4: Enviromentalists are wrong because they fail to conider the fact that conserving natural assets can also have economic value which may be as significant as the profits derived from commercial ventures like resorts. am i right on this?
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 21 Dec 2017, 23:39
My first time to answer all correct in RC passage.

Yes, I think this is not 700-level question.

Wdyt?
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Re: The argument for “monetizing”—or putting a monetary value on—ecosystem  [#permalink]

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New post 12 Aug 2018, 02:08
Easy one, got all correct in 6 min 10 sec.
Re: The argument for “monetizing”—or putting a monetary value on—ecosystem &nbs [#permalink] 12 Aug 2018, 02:08
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