The fall of the Berlin Wall represented a political victory of the fre

Question

The fall of the Berlin Wall represented a political victory of the free market against a centrally planned economy. Though highly interventionist and dependent on international defense and industrial subsidy, West Germany was a model of economic expansion in the post-war era. East Germany, while relatively successful in comparison with other Eastern Bloc nations, was far behind West Germany with regard to the buying power of its people. It was hard to avoid obvious comparisons such as the fact that 1 in 4 East Germans did not even have an indoor toilet. Western German authorities were therefore committed to rapid integration of the two Germanys without resorting to massive controls on internal migration, external capital controls, or continuation of a large state-owned industrial sector.

Other nations were already wary of a united Germany. France, a perpetual competitor, saw Germany’s size advantage increase overnight. In Gross Domestic Product ("GDP") alone, an historical size advantage of 23% jumped to nearly 30%, with stronger growth promised when East Germany was fully integrated.

Within Germany, there should have been no doubt that integration would be costly. The question was whether the government was up to the task. In Italy, for example, the central government has invested tremendous resources in promoting the economy of its under-performing Southern region. In contrast, in the United States, the local population bears the burden of varying economic performance. For example, the American South is allowed to exist with much higher rates of poverty and lower education than the rest of the nation.

Rather than allow East Germany to fall into total disrepair, with millions fleeing to the West and a long-term negative impact on national GDP growth, West German authorities decided to try to spend their way out of the crisis, creating almost overnight an infrastructure in East Germany to provide a standard of living comparable to that in West Germany. The goal was to take an under-performing country and raise it to “first world” standards in only a few years. This goal would have been preposterous had not West Germany possessed the resources to accomplish the task.   1 
 E 
 1. According to the author, which of the following is the principal reason that German reunification could succeed?

A · The additional population from East Germany gave the reunified Germany an economic advantage over other European nations.
B · East Germany had not been as impoverished as other Eastern Bloc countries.
C · West Germany did not plan to control internal migration from East Germany.
D · West Germany patterned its economic plan after a successful Italian model.
E · West Germany was a materially stable country.

2 
 B 
 2. The author mentions the United States most probably in order to

A· argue against a commonly held belief about market economies
B· provide an example of a situation seen as undesirable
C· suggest an advantageous solution to an economic problem
D· illustrate an economic principle called into question
E· demonstrate the positive consequences of economic freedom

3 
 C 
 3. Which of the following best describes the way the first paragraph functions in the context of the passage?

A· A specific example is presented to illustrate the main elements of a general economic theory.
B· Evidence is presented in support of a revision of a commonly held view.
C· Information that is necessary for understanding the main argument of the passage is presented.
D· Questions are raised which are answered in subsequent paragraphs.
E· A qualified view of the author’s main point is contrasted with a less specific view.

4 
 D 
 4. The passage suggests which of the following about the relationship between West Germany and France?

A· Historically, the economy of West Germany had been more stable than that of France.
B· The Gross Domestic Product of West Germany had always been greater than that of France.
C· The size of West Germany’s population gave it an advantage over France in international trade.
D· France did not view its economic position relative to West Germany as immutable.
E· West Germany planned to use reunification to bolster ts economic advantage over France.

Manhattan CAT 2

Carcass · Accepted Answer

OFFICIAL EXPLANATIONS

1.

The question asks us to identify the author's reason for believing that German reunification could succeed. According to the last sentence of the passage, "  would have been preposterous had not West Germany possessed the resources to accomplish the task." In other words, West Germany was prosperous enough to afford this major undertaking.

(A) The correct principal reason for success does not include attributes of East Germany.

(B) The correct principal reason for success does not include attributes of East Germany.
(C) Although this point is made in the passage, it is not the reason given for reunification's success.
(D) This is not the reason given in the last sentence for reunification's success. 
 (E) CORRECT.  This choice reflects the information we were looking for: the country was "materially stable," or prosperous enough, to succeed.

2.

The question asks us to identify the reason that the author mentions the United States in the passage. In the third paragraph, the author asks whether West
Germany was "up to the task" of re-unification. This is followed by the example of Italy as a government that does spend the necessary resources to help its underperforming regions. Then, the author mentions the United States as a counterexample with negative overtones: "In contrast, in the United States, the local population bears the burden of varying economic performance. For example, the American South is allowed to exist with much higher rates of poverty and lower education than the rest of the nation."

The use of the word "allowed" suggests that the author does not approve of the situation in the United States. Further, the very next paragraph begins ... "Rather than allow East Germany to fall into total disrepair . . . " as if to further contrast the German government with that of the United States.

(A) The passage in general does not argue against any commonly held beliefs, including the specific example about the United States. (B) CORRECT. This choice echoes our above analysis: the author views the situation cited as "undesirable."

(C) The author disapproves of the cited example, so he would not offer it as a possible advantageous solution to Germany's reunification.

(D) The passage does not call the principle into question; rather, the author indicates disapproval of this particular approach.

(E) The author disapproves of the cited example; he would not offer it as a positive lesson.

3.

The question asks us to identify the purpose of the first paragraph: what role does it play in the context of the passage as a whole? The first paragraph presents historical information about the relationship between East and West Germany. This information is given as background to the subsequent paragraphs. We need to find an answer choice that is consistent with this analysis.

(A) The relationship between East and West Germany is not merely one example of a much larger general theory; the passage is about this specific circumstance.

(B) The passage does not seek to alter or revise a commonly held view, either in the first paragraph or elsewhere.

(C) CORRECT. The first paragraph presents the background information necessary to understand the claims made in the rest of the passage.

(D) The first paragraph does not raise questions; it provides facts as to the relationship between East and West Germany at a specific point in time.

(E) The first paragraph does not provide two opposing points of view.

4.

The question asks us to infer something from the passage regarding the relationship between West Germany and France. The passage notes that countries were "wary of a united Germany" and next mentions that France, "a perpetual competitor, saw Germany’s size advantage increase overnight." We need to find an answer choice that can be deduced from this information alone; we cannot conclude too much. If France is wary of Germany's impending larger size, then France must also be worried that it will be negatively impacted by the change.

(A) The above information tells us nothing about the relative stabilities of the two economies.

(B) The above information does not tell us the entire history of the relative GDPs of the two countries. "Always" is too extreme.

(C) The above information does not mention either population or international trade with respect to the two countries' economies.

(D) CORRECT.  If France does not view its relative economic position as immutable, or unable to be changed, then it is sensible for the country to worry that it might be negatively impacted by the changes in Germany. that West Germany specifically planned to bolster its position over that of France.

The fall of the Berlin Wall represented a political victory of the fre

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GMAT Reading Comprehension (RC) Questions

The fall of the Berlin Wall represented a political victory of the fre

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