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The United States government has a long-standing policy of using feder

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The United States government has a long-standing policy of using feder  [#permalink]

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New post Updated on: 17 Aug 2019, 20:33
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The United States government has a long-standing policy of using federal funds to keep small business viable. The Small Business Act of 1953 authorized the Small Business Administration (SBA) to enter into contracts with government agencies having procurement powers and to arrange for fulfillment of these contracts by awarding subcontracts to small businesses. In the mid 1960's, during the war on poverty years, Congress hoped to encourage minority entrepreneurs by directing such funding to minority businesses. At first this funding was directed toward minority entrepreneurs with very low incomes. A 1967 amendment to the Economic Opportunity Act directed the SBA to pay special attention to minority-owned businesses located in urban or rural areas characterized by high proportions of unemployed or low-income individuals. Since then, the answer given to the fundamental question of who the recipients should be—the most economically disadvantaged or those with the best prospects for business success—has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occurred during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. In fact, in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned businesses. At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination. Increasing the number of minority-owned firms was seen as a way to remedy this problem. In that context, providing funding to minority entrepreneurs in middle- and high-income brackets seemed justified.

In the late 1970's, the goals of minority-business funding programs shifted again. At the minority business Development Agency, for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential. Assisting manufacturers or wholesalers became far more important than assisting small service businesses. Minority-business funding programs were now justified as instruments for economic development, particularly for creating jobs in minority communities of high unemployment.
1. It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

(A) Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
(B) Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
(C) Minority entrepreneurs hired a percentage of minority employees equal to the percentage of minority residents in their own communities.
(D) The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
(E) Seventeen percent of all persons employed in small businesses were self-employed.




2. Which of the following best describes the function of the second paragraph in the passage as a whole?

(A) It narrows the scope of the topic introduced in the first paragraph.
(B) It presents an example of the type of change discussed in the first paragraph.
(C) It cites the most striking instance of historical change in a particular government policy.
(D) It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
(E) It presents the results of policies adopted by the federal government.




3. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

(A) Alleviating chronic unemployment in urban areas
(B) Narrowing the ownership gap
(C) Assisting minority-owned businesses with growth potential
(D) Awarding subcontracts to businesses that encouraged community development
(E) Targeting the most economically disadvantaged minority-owned businesses




4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?

(A) Coming up with the funding for the programs
(B) Encouraging government agencies to assist middle- and high-income minority entrepreneurs
(C) Recognizing the profit potential of small service businesses in urban communities
(D) Determining who should be the recipients of the funding
(E) Determining which entrepreneurs are likely to succeed




Originally posted by ksung84 on 22 Jul 2013, 09:09.
Last edited by hazelnut on 17 Aug 2019, 20:33, edited 5 times in total.
Updated complete topic (10).
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New post 22 Jul 2013, 11:17
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It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination."
Minorities = 17% population.
Minorities = 4% self employed. <== this is the "gap"
"Increasing the number of minority-owned firms was seen as a way to remedy this problem". In "inference" questions the answer is already in the passage.
This is how the text says that the gap can be narrowed. Which answer can be seen as a rewording of this?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT
E: Seventeen percent of all persons employed in small businesses were self-employed.

Which of the following best describes the function of the second paragraph in the passage as a whole?


....
Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's.
...

The second paragraph is connected to the first one because it discusses something that the first one presented.

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.<==CORRECT
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.


According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. (...) This ownership gap was held to be the result of past discrimination.Increasing the number of minority-owned firms was seen as a way to remedy this problem.
Increasing the number of minority-owned firms ==> reduce the GAP (the new goal or priority/focus in 1970).

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap<== CORRECT
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses

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New post 31 Jul 2013, 08:24
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lucasITA wrote:
but where i can read the inference about "ten percent of all self-employed persons" ?' i've understood the general meaning of option D but it contains a very specific statement that i can't understand, and this is why in 4 minutes i could not answer the question :| :(


The point of B is not the number 10%.

It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

This is the definition of the gap:"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. "

The gap would be narrowed if the "percentage of self-employed minority persons rose" to an higher level, period.
I can be 10%,11% or 10.5%: it does not matter; the question says "would be narrowed if which of the following were to occur", so if the answer choice say "the percentage is higher (does not matter the numerical value itself) the answer is correct.

D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT

Hope I've explained myself well.
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New post 09 Aug 2013, 23:27
2
For the last question I was confused between B and D as it mentions primary goal in 1970s

early 1970s - ownership gap
late 1970s - assisting minority-owned firms with future growth potential

At the start of the 2nd para it says
The first shift occured during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, (Indicates answer is D)

But then again I think I missed this sentence
for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential (indicates answer is B)

Is that the point I missed?
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New post 12 Mar 2014, 11:21
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 30 Mar 2014, 09:38
2
Since I got this wrong, I have a query.

According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses

Para 2 concentrates on early 1970 and para 3 concentrates on late 1970's.

Para 2 talks about ownership GAP created by the past discrimination. However, para 3 talks about the focus shift of policy to assisting minority based business having growth potential not solely awarding minority business which was economically disadvantaged.

Please suggest

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New post 04 Aug 2014, 10:44
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Q3 asks about "in 1970". The second paragraph mentions that "in 1970" the stated main goal was to increase the number of minority-owned businesses. The subsequent sentences identify this as the "ownership gap". Hence B is correct.

The focus on assisting minority-owned firms with growth potential occurred only in the late 1970s, not "in 1970". Note that the question does not ask "in the 1970s."
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New post 31 Jan 2016, 00:11
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C adds an extreme element ("most striking") that isn't supported by the passage. Perhaps that change seemed more striking to you than the change in paragraph 3, but this isn't established in the passage. B is milder, and so easier to support. One way to think about it is that there's no way for C to be true without B also being true. Therefore, there's no justification for eliminating B and selecting C.
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 22 Feb 2017, 23:34
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ksung84 wrote:
The United States government has a long-standing policy of using federal funds to keep small business viable. The Small Business Act of 1953 authorized the Small Business Administration (SBA) to enter into contracts with government agencies having procurement powers and to arrange for fulfillment of these contracts by awarding subcontracts to small businesses. In the mid 1960's, during the war on poverty years, Congress hoped to encourage minority entrepreneurs by directing such funding to minority businesses. At first this funding was directed toward minority entrepreneurs with very low incomes. A 1967 amendment to the Economic Opportunity Act directed the SBA to pay special attention to minority-owned businesses located in urban or rural areas characterized by high proportions of unemployed or low-income individuals. Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. In fact, in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned buinesses. At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination. Increasing the number of minority-owned firms was seen as a way to remedy this problem. In that context, providing funding to minority entrepreneurs in middle- and high-income brackets seemed justified.

In the late 1970's, the goals of minority-business funding programs shifted again. At the minority business Development Agency, for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential. Assisting manufacturers or wholesalers became far more important than assisting small service businesses. Minority-business funding programs were now justified as instruments for economic development, particularly for creating jobs in minority communities of high unemployment.
It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
E: Seventeen percent of all persons employed in small businesses were self-employed.



Which of the following best describes the function of the second paragraph in the passage as a whole?

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.




According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses




tough passage.

Q2 -- what makes A/C "B" better than "A"? It is true that in the 2nd paragraph, the scope is literally confined to "remedy the effects of past discrimination" -- as in, that's literally the only thing going on in that paragraph. I don't necessarily see how "A" is wrong (I was debating hard between "A" & "B")

Q3 -- what makes "B" correct? From paragraph 3, it is pretty clear that the "goal of increasing the # of minority-owned firms" was "supplanted by the goal of creating and assisting minority-owned firms WITH GROWTH POTENTIAL". Doesn't "C" literally spell this out?


^ need explanation b/c otherwise, this seems really controversial
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New post 25 Feb 2017, 01:17
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LakerFan24,

Q2: The ideas in p2 have already been set up in p1. The first paragraph starts talking about shifts in program goals, and the second paragraph advances the narrative by showing one of those goals. That doesn't narrow the scope, since that's already the level the discussion was on. Narrowing the scope would be if the first paragraph were about the program as a whole, and we zoomed in to see how that played out in a particular community or within one specific industry. Although p2 provides an example, as B indicates, it maintains a high-level view of the overall program and its goals.

Q3: Watch carefully for the scope of the question. We're asked specifically about 1970, not the 1970's, so p3 is out of scope. Only p2 talks about 1970. This is a good example of why it's important to develop a strong feel for the author's overall point before diving into specific questions. If you've identified that overall, the author is showing how goals for supporting minority-owned businesses shifted over time, you're more likely to catch the difference between 1970 and 1970's in this question. Why? Because the goals shifted during the 1970's, so there's no way to answer a question about the primary focus during that entire period of time!
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New post 16 Oct 2017, 01:11
ksung84 wrote:
The United States government has a long-standing policy of using federal funds to keep small business viable. The Small Business Act of 1953 authorized the Small Business Administration (SBA) to enter into contracts with government agencies having procurement powers and to arrange for fulfillment of these contracts by awarding subcontracts to small businesses. In the mid 1960's, during the war on poverty years, Congress hoped to encourage minority entrepreneurs by directing such funding to minority businesses. At first this funding was directed toward minority entrepreneurs with very low incomes. A 1967 amendment to the Economic Opportunity Act directed the SBA to pay special attention to minority-owned businesses located in urban or rural areas characterized by high proportions of unemployed or low-income individuals. Since then, the answer given to the fundamental question of who the recipients should be—the most economically disadvantaged or those with the best prospects for business success—has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. In fact, in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned buinesses. At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination. Increasing the number of minority-owned firms was seen as a way to remedy this problem. In that context, providing funding to minority entrepreneurs in middle- and high-income brackets seemed justified.

In the late 1970's, the goals of minority-business funding programs shifted again. At the minority business Development Agency, for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential. Assisting manufacturers or wholesalers became far more important than assisting small service businesses. Minority-business funding programs were now justified as instruments for economic development, particularly for creating jobs in minority communities of high unemployment.
1. It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

(A) Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
(B) Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
(C) Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
(D) The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
(E) Seventeen percent of all persons employed in small businesses were self-employed.




2. Which of the following best describes the function of the second paragraph in the passage as a whole?

(A) It narrows the scope of the topic introduced in the first paragraph.
(B) It presents an example of the type of change discuseed in the first paragraph.
(C) It cites the most striking instance of historical change in a particular government policy.
(D) It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
(E) It presents the results of policies adpoted by the federal government.




3. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

(A) Alleviating chronic unemployment in urban areas
(B) Narrowing the ownership gap
(C) Assisting minority-owned businesses with growth potential
(D) Awarding subcontracts to businesses that encouraged community development
(E) Targeting the most economically disadvantaged minority-owned businesses




4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?

(A) Coming up with the funding for the programs
(B) Encouraging government agencies to assist middle- and high-income minority entrepreneurs
(C) Recognizing the profit potential of small service businesses in urban communities
(D) Determining who should be the recipients of the funding
(E) Determining which entrepreneurs are likely to succeed





GMATNinja can you please explain how option d is correct in the last question. I think
determining succesful entrepreneurs was the goal . Please explain this
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New post 19 Oct 2017, 21:11
Ravindra.here wrote:
GMATNinja can you please explain how option d is correct in the last question. I think
determining succesful entrepreneurs was the goal . Please explain this

Quote:
4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?

(A) Coming up with the funding for the programs
(B) Encouraging government agencies to assist middle- and high-income minority entrepreneurs
(C) Recognizing the profit potential of small service businesses in urban communities
(D) Determining who should be the recipients of the funding
(E) Determining which entrepreneurs are likely to succeed

Refer to the last sentence of the first paragraph: "Since [the 1967 amendment], the answer given to the fundamental question of who the recipients should be—the most economically disadvantaged or those with the best prospects for business success—has changed, and the social goals of the programs have shifted, resulting in policy changes."

The fact that the recipients have changed tell us that those administering the programs are considering WHO should receive the funding. If choice (D) were not a basic consideration, then those administering the programs would NOT ask the fundamental question of who the recipients should be. We are told that the question of who the recipients should be (i.e. which groups should be given funding) is fundamental, impacting the basic goals and directions of such programs.

The passage mentions a couple shifts in policy that impacted who received funding. For example, "in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned businesses." In the late 1970s, one agency adopted "the goal of creating and assisting more minority-owned substantive firms with future growth potential."

However, the passage makes no mention of analyzing/predicting which entrepreneurs are likely to succeed. Choosing the individual people and businesses within those groups might be a secondary question that involves considering which entrepreneurs are likely to succeed, but the passage does not talk about such considerations.

Thus, (D) is a better answer than (E).
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New post 28 Mar 2018, 19:56
adkikani wrote:
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Quote:
1. It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

(A) Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
(B) Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
(C) Minority entrepreneurs hired a percentage of minority employees equal to the percentage of minority residents in their own communities.
(D) The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
(E) Seventeen percent of all persons employed in small businesses were self-employed.


Relevant text in passage:

Quote:
In fact, in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned businesses. At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination. Increasing the number of minority-owned firms was seen as a way to remedy this problem.


I did not see 'self-employed' word in (D) I had to guess on this one since none of PoE took me to correct choice
as I found none of choices to be mentioned in passage.

adkikani, the word self-employed appears both in choice (D) and in the passage, as highlighted above. The ownership gap is the difference between the total percentage of the population (17%) and the percentage of self-employed people (4%). Increasing the percentage of self-employed minority persons would indeed help close this gap.
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 07 Aug 2018, 21:44
Zarrolou wrote:
It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination."
Minorities = 17% population.
Minorities = 4% self employed. <== this is the "gap"
"Increasing the number of minority-owned firms was seen as a way to remedy this problem". In "inference" questions the answer is already in the passage.
This is how the text says that the gap can be narrowed. Which answer can be seen as a rewording of this?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT
E: Seventeen percent of all persons employed in small businesses were self-employed.

Which of the following best describes the function of the second paragraph in the passage as a whole?


....
Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's.
...

The second paragraph is connected to the first one because it discusses something that the first one presented.

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.<==CORRECT
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.


According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. (...) This ownership gap was held to be the result of past discrimination.Increasing the number of minority-owned firms was seen as a way to remedy this problem.
Increasing the number of minority-owned firms ==> reduce the GAP (the new goal or priority/focus in 1970).

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap<== CORRECT
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses


Hi Zarrolou and Verbal Moderators (GMATNinja, daagh, @egmat),

In Q1 how did you eliminate option E. Could you please explain it?
Also, for Q3, how do we know that passage is talking about early 1970.. Question doesn't mention this.. It can be late 1970's as well. Can you please explain this as well?

Thanks in advance! :)
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 08 Aug 2018, 00:26
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Quote:
In Q1 how did you eliminate option E. Could you please explain it?


The passage talks about 17% of the total population of the US. E talks about Seventeen percent of all persons employed in small businesses. E is out of scope.


Quote:
Also, for Q3, how do we know that passage is talking about early 1970.. Question doesn't mention this.. It can be late 1970's as well. Can you please explain this as well?


Please note C talk about the specific year of 1970. It is not concerned about any early - 1970' or - 1970's or late -1970s.

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New post 16 Aug 2019, 13:22
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Re: The United States government has a long-standing policy of using feder   [#permalink] 16 Aug 2019, 13:22
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