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The main measure of national economic activity—the gross domestic product (GDP)—simply totals the monetary value of goods and services produced. It ignores social costs such as depletion of natural resources or environmental pollution. Some economists argue that to place a dollar figure on these costs in GDP accounting would be to introduce value judgments into what should remain an objective measure. However, in excluding these costs the GDP already contains an implicit value judgment, valuing them at zero.
Which of the following most accurately states the point toward which the passage is directed?
A. The GDP as currently measured does not contain information that would make it possible to estimate social costs, such as depletion of natural resources or environmental pollution.
B. The economists are being inconsistent in excluding social costs from the GDP on the grounds that including them would not be objective.
C. The economists fail to realize that environmental pollution and the depletion of natural resources have social costs.
D. Any goods or services that cause depletion of natural resources or environmental pollution ought to be excluded from the GDP.
E. Social costs such as depletion of natural resources and environmental pollution can be determined as objectively as can the total monetary value of goods and services produced.
GMAT-Club-Forum-u2vjjv5v.png [ 113.64 KiB | Viewed 2823 times ]
Which of the following most accurately states the point toward which the passage is directed?
A. The GDP as currently measured does not contain information that would make it possible to estimate social costs, such as depletion of natural resources or environmental pollution.
B. The economists are being inconsistent in excluding social costs from the GDP on the grounds that including them would not be objective.
C. The economists fail to realize that environmental pollution and the depletion of natural resources have social costs.
D. Any goods or services that cause depletion of natural resources or environmental pollution ought to be excluded from the GDP.
E. Social costs such as depletion of natural resources and environmental pollution can be determined as objectively as can the total monetary value of goods and services produced.
Attachment:
GMAT-Club-Forum-u2vjjv5v.png [ 113.64 KiB | Viewed 2823 times ]
13 Mar 2024, 04:02
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The main measure of national economic activity—the gross domestic product (GDP)—simply totals the monetary value of goods and services produced. It ignores social costs such as depletion of natural resources or environmental pollution. Some economists argue that to place a dollar figure on these costs in GDP accounting would be to introduce value judgments into what should remain an objective measure. However, in excluding these costs the GDP already contains an implicit value judgment, valuing them at zero.
Which of the following most accurately states the point toward which the passage is directed?
This question is a Conclusion question, and the correct answer will be a conclusion supported by the statements in the passage.
A. The GDP as currently measured does not contain information that would make it possible to estimate social costs, such as depletion of natural resources or environmental pollution.
The passage does not indicate that social costs cannot be estimated because of lack of information.
Rather, the possible issue with accounting for social costs that is mentioned in the passage is that doing so involves making value judgments. In other words, the passage indicates that estimates of social costs can be made through making value judgments, but some economists disagree with using such estimates in calculating GDP.
Eliminate.
B. The economists are being inconsistent in exluding social costs from the GDP on the grounds that including them would not be objective.
The passage supports this conclusion.
After all, it says that economists argue that to place a dollar figure on social costs would be introducing value judgments into what should remain an objective measure, but they make a value judgment in excluding these costs.
Simply put, the passage indicates that economists argue against making value judgments in calculating GDP but are making one themselves. So, the passage indicates that what the economists say and do confict with each other, i.e., are "inconsistent."
That information supports the conclusion that "The economists are being inconsistent in exluding social costs from the GDP on the grounds that including them would not be objective."
Keep.
C. The economists fail to realize that environmental pollution and the depletion of natural resources have social costs.
The passage says the following:
Some economists argue that to place a dollar figure on these (social) costs in GDP accounting would be to introduce value judgments
So, contrary to what this choice says, the passage indicates that the economists realize that social costs exist.
Eliminate.
D. Any goods or services that cause depletion of natural resources or environmental pollution ought to be excluded from the GDP.
The passage does not advocate for excluding anything from the GDP.
Rather, it provides a reason to take something additional, social costs, into account.
Eliminate.
E. Social costs such as depletion of natural resources and environmental pollution can be determined as objectively as can the total monetary value of goods and services produced.
The information in the passage does not support the idea that social costs can be determined as objectively as values of goods and services.
Rather, it provides a reason to take social costs into account, even if putting placing a dollar figure on social costs involves introducing "value judgments," meaning making determinations that are not as objective as others involved in calculating GDP.
Eliminate.
Correct answer: B
Which of the following most accurately states the point toward which the passage is directed?
This question is a Conclusion question, and the correct answer will be a conclusion supported by the statements in the passage.
A. The GDP as currently measured does not contain information that would make it possible to estimate social costs, such as depletion of natural resources or environmental pollution.
The passage does not indicate that social costs cannot be estimated because of lack of information.
Rather, the possible issue with accounting for social costs that is mentioned in the passage is that doing so involves making value judgments. In other words, the passage indicates that estimates of social costs can be made through making value judgments, but some economists disagree with using such estimates in calculating GDP.
Eliminate.
B. The economists are being inconsistent in exluding social costs from the GDP on the grounds that including them would not be objective.
The passage supports this conclusion.
After all, it says that economists argue that to place a dollar figure on social costs would be introducing value judgments into what should remain an objective measure, but they make a value judgment in excluding these costs.
Simply put, the passage indicates that economists argue against making value judgments in calculating GDP but are making one themselves. So, the passage indicates that what the economists say and do confict with each other, i.e., are "inconsistent."
That information supports the conclusion that "The economists are being inconsistent in exluding social costs from the GDP on the grounds that including them would not be objective."
Keep.
C. The economists fail to realize that environmental pollution and the depletion of natural resources have social costs.
The passage says the following:
Some economists argue that to place a dollar figure on these (social) costs in GDP accounting would be to introduce value judgments
So, contrary to what this choice says, the passage indicates that the economists realize that social costs exist.
Eliminate.
D. Any goods or services that cause depletion of natural resources or environmental pollution ought to be excluded from the GDP.
The passage does not advocate for excluding anything from the GDP.
Rather, it provides a reason to take something additional, social costs, into account.
Eliminate.
E. Social costs such as depletion of natural resources and environmental pollution can be determined as objectively as can the total monetary value of goods and services produced.
The information in the passage does not support the idea that social costs can be determined as objectively as values of goods and services.
Rather, it provides a reason to take social costs into account, even if putting placing a dollar figure on social costs involves introducing "value judgments," meaning making determinations that are not as objective as others involved in calculating GDP.
Eliminate.
Correct answer: B
General Discussion
19 Mar 2024, 07:44
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Summary:
fact: GDP excludes the natural resource / raw material cost
economist: accounting their cost would lead to introduction of value judgments but they should remain an objective measure
author: However, not accounting these costs means we already are putting an value judgement that they cost 0
The economist's reasoning is contradictory:
Clearly economists say putting a dollar value ( let's say $20 ) on these items would mean value judgement of objective measures, Yet not accounting for their cost means they cost $0 ( $0 - which is a value judgement itself )
Hence option B
fact: GDP excludes the natural resource / raw material cost
economist: accounting their cost would lead to introduction of value judgments but they should remain an objective measure
author: However, not accounting these costs means we already are putting an value judgement that they cost 0
The economist's reasoning is contradictory:
Clearly economists say putting a dollar value ( let's say $20 ) on these items would mean value judgement of objective measures, Yet not accounting for their cost means they cost $0 ( $0 - which is a value judgement itself )
Hence option B
