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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: 03 Sep 2019, 06:36
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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 highlighted 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. 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



3. 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.



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



5. The primary purpose of the passage is to
A. discuss historical changes in a government policy
B. describe the role of Congress in regulating the work of the SBA
C. contrast types of funding sources used by minority businesses
D. correct a misconception about minority entrepreneurship
E. advocate an alternative approach to funding minority entrepreneurs



Originally posted by PiyushK on 12 Aug 2014, 04:52.
Last edited by SajjadAhmad on 03 Sep 2019, 06:36, edited 3 times in total.
Updated - Complete topic (396).
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 13 Aug 2014, 21:16
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Time taken 13 mins.

1. It can be inferred that the "ownership gap" (see highlighted text) would be narrowed if which of the following were to occur?
D. The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
"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."

2. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?
B. Narrowing the ownership gap
"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"

3. Which of the following best describes the function of the second paragraph in the passage as a whole?
B. It presents an example of the type of change discussed in the first paragraph.
"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"

4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?
D. Determining who should be the recipients of the funding
"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"

5. The primary purpose of the passage is to
A. discuss historical changes in a government policy
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 14 Aug 2014, 14:21
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Time taken: 9:08 mins
1. It can be inferred that the "ownership gap" (see highlighted 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.Nothing like that
B. Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.Help is to be given by the govt not only to low-income people but also to middle and high income people in some cases
C. Minority entrepreneurs hired a percentage of minority employees equal to the percentage of minority residents in their own communities.Question is to increase % of self-employed. Not the % of employed
D. The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.This increases the % of self-employed and decreases the gap
E. Seventeen percent of all persons employed in small businesses were self-employed.We are concerned about minorities here not the total population.


2. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?
A. Alleviating chronic unemployment in urban areasWe are concerned about self-employment and not total employment
B. Narrowing the ownership gapYes
C. Assisting minority-owned businesses with growth potentialThis was a thing of the past and subsequently was adopted again in the future. But is not part of our time frame in question.
D. Awarding subcontracts to businesses that encouraged community developmentNo mention of community development
E. Targeting the most economically disadvantaged minority-owned businessesTake out the "most" and this could be the right answer.


3. 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.It gives a part of the history of enactment of the assistance
B. It presents an example of the type of change discussed in the first paragraph.It is an example of the many changes that the execution of the law went through
C. It cites the most striking instance of historical change in a particular government policy.Yes. It is the first of the many historical changes
D. It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.Doesnt do that
E. It presents the results of policies adopted by the federal government.Doesnt do that


4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?
A. Coming up with funding for the programsIt is govt funded. No problem mentioned in the passage reagrading funding
B. Encouraging government agencies to assist middle and high-income minority entrepreneursNo problem with this mentioned
C. Recognizing the profit potential of small service businesses in urban communitiesNothing in the passage to support this
D. Determining who should be the recipients of the fundingThere were a lot of times the policy changed and each time the policy changed, it changed wrt who would receive the funding.
E. Determining which entrepreneurs are likely to succeedNothing to support this in the passage


5. The primary purpose of the passage is to
A. discuss historical changes in a government policy Yes. It does that
B. describe the role of Congress in regulating the work of the SBANope. The Congress is not even mentioned after the 1st paragraph, where it passed the policy.
C. contrast types of funding sources used by minority businessesHere only 1 type of funding ie govt funding is discussed. No mention or contrasting different funding
D. correct a misconception about minority entrepreneurshipPassage shows the ways a policy was enacted. There is nothing in the passage to support this option
E. advocate an alternative approach to funding minority entrepreneursThere is no mention of any other funding in the passage and hence govt funding may not be the "alternative approach of funding minority entrepreneurs"
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 01 Aug 2016, 20:19
please help with below RC with explanation of the answer :-

A recent study has provided clues to predator-prey dynamics in the late Pleistocene era. Researchers compared the number of tooth fractures in present-day carnivores with tooth fractures in carnivores that lived 36,000 to 10,000 years ago and that were preserved in the Rancho La Brea tar pits in Los Angeles. The breakage frequencies in the extinct species were strikingly higher than those in the present-day species.

In considering possible explanations for this finding, the researchers dismissed demographic bias because older individuals were not overrepresented in the fossil samples. They rejected preservational bias because a total absence of breakage in two extinct species demonstrated that the fractures were not the result of abrasion within the pits. They ruled out local bias because breakage data obtained from other Pleistocene sites were similar to the La Brea data. The explanation they consider most plausible is behavioral differences between extinct and present-day carnivores--in particular, more contact between the teeth of predators and the bones of prey due to more thorough consumption of carcasses by the extinct species. Such thorough carcass consumption implies to the researchers either that prey availability was low, at least seasonally, or that there was intense competition over kills and a high rate of carcass theft due to relatively high predator densities.

Question.

The primary purpose of the passage is to

(A) present several explanations for a well-known fact
(B) suggest alternative methods for resolving a debate
(C) argue in favor of a controversial theory
(D) question the methodology used in a study
(E) discuss the implications of a research finding
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 01 Aug 2016, 23:21
aksol66:

5. The primary purpose of the passage is to
A. discuss historical changes in a government policy Yes. It does that
B. describe the role of Congress in regulating the work of the SBA Nope. The Congress is not even mentioned after the 1st paragraph, where it passed the policy.
C. contrast types of funding sources used by minority businesses .Here only 1 type of funding ie govt funding is discussed. No mention or contrasting different funding
D. correct a misconception about minority entrepreneurship . Passage shows the ways a policy was enacted. There is nothing in the passage to support this option
E. advocate an alternative approach to funding minority entrepreneurs There is no mention of any other funding in the passage and hence govt funding may not be the "alternative approach of funding minority entrepreneurs"

P.S : copied the answer from above ,but i agree with his analysis
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The United States government has a long-standing policy of using feder  [#permalink]

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New post 13 Nov 2019, 14:05
1
Passage Map
P1: Intro discussion on US government's assistance of small businesses
P2: Discuss shift in focus of assistance to aid minorities own businesses to remedy past discrim.
P3: Discuss a second shift - focus on growth of minority owned businesses

Q1 - Inference
P2 states that providing funding to middle and high-income bracket entrepreneurs seems justified because of the ownership gap.

A - It's nowhere stated or inferred that non minorities were given an advantage in the awarding of contracts
B - This isn't what we should deduce. The gap exists because 17% of the pop = minority, but only 4% are self employed
C - Doesn't make sense as the gap is in self-employed, not employed persons. Incorrect.
D - This is the only thing that makes sense. If only 4% of all self-employed are minorities, then obviously the gap between 4 and 17% would decrease if the percentage increased to above 10%.
E - this twists what we are told. We are told that only 4% of all self-employed are minorities, but 17% of the population are minorities... don't get it twisted. Incorrect

Q2 - Detail
What are we told the 1970 funding focused on?
p2 describes the 197- funding - essentially focused on bringing up # minority owned businesses

A - No - not
B - this is correct. Ownership gap is what we are targeting. What ownership gap? The gap in ownership mentioned above... 4% ownership.
C - this was the goal of the late 1970s, not 1970 itself. Incorrect
D - No. This was a former goal. Incorrect.
E - No. They were targeting minority-owned businesses in general.

Q3 - Function/ Purpose
The second passage really just recalls the next step taken and the shift in focus of the SBA to alleviating gaps in the number of minority owned businesses.
A - It doesn't really narrow the scope. It does talk more specifically about the topic, but there is a shift in scope to the change that occured.
B - At the end of p1 we are told "the answer to the fundamental question of who the recipients should be ..has changed". P2 then goes on to discuss who those recipients should be- minority owners/ self-employed. So B is correct.
C - incorrect. I don't know if this is the most 'striking instance', but I doubt it.
D - Incorrect. Completely off the mark.
E - Its not really a result - a type of change in policy is discussed. Incorrect

Q4 - Detail
Administering minority business funding is discussed in P1 and then throughout here and there.

We are told "the fundamental question of who the recipients should be" in p1 though, so that's D straight away.

A is incorrect - nowhere discussed. We are just told that the funding is federally supplemented.
B is incorrect because we are told this is more elaborate decision made down the track... what's more basic? B or D?
C No - the growth potential of small-minority ownd businesses is considered in the late 1970s, but nowhere is profit mentioned.
E - This is a question posed in the 1970s reforms - not so basic though.

Q5 - Main Idea
B is incorrect - is congress even mentioned?
C is incorrect - where are multiple sources mentioned let alone contrasted?
D is incorrect - no misconception is mentioned. Historical changes are traced.
E is incorrect - nothing is really advocated, let alone an alternate approach

Thus A is correct.
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 25 Mar 2020, 21:47
AmoyV wrote:
Time taken: 9:08 mins
1. It can be inferred that the "ownership gap" (see highlighted 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.Nothing like that
B. Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.Help is to be given by the govt not only to low-income people but also to middle and high income people in some cases
C. Minority entrepreneurs hired a percentage of minority employees equal to the percentage of minority residents in their own communities.Question is to increase % of self-employed. Not the % of employed
D. The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.This increases the % of self-employed and decreases the gap
E. Seventeen percent of all persons employed in small businesses were self-employed.We are concerned about minorities here not the total population.


2. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?
A. Alleviating chronic unemployment in urban areasWe are concerned about self-employment and not total employment
B. Narrowing the ownership gapYes
C. Assisting minority-owned businesses with growth potentialThis was a thing of the past and subsequently was adopted again in the future. But is not part of our time frame in question.
D. Awarding subcontracts to businesses that encouraged community developmentNo mention of community development
E. Targeting the most economically disadvantaged minority-owned businessesTake out the "most" and this could be the right answer.


3. 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.It gives a part of the history of enactment of the assistance
B. It presents an example of the type of change discussed in the first paragraph.It is an example of the many changes that the execution of the law went through
C. It cites the most striking instance of historical change in a particular government policy.Yes. It is the first of the many historical changes
D. It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.Doesnt do that
E. It presents the results of policies adopted by the federal government.Doesnt do that


4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?
A. Coming up with funding for the programsIt is govt funded. No problem mentioned in the passage reagrading funding
B. Encouraging government agencies to assist middle and high-income minority entrepreneursNo problem with this mentioned
C. Recognizing the profit potential of small service businesses in urban communitiesNothing in the passage to support this
D. Determining who should be the recipients of the fundingThere were a lot of times the policy changed and each time the policy changed, it changed wrt who would receive the funding.
E. Determining which entrepreneurs are likely to succeedNothing to support this in the passage


5. The primary purpose of the passage is to
A. discuss historical changes in a government policy Yes. It does that
B. describe the role of Congress in regulating the work of the SBANope. The Congress is not even mentioned after the 1st paragraph, where it passed the policy.
C. contrast types of funding sources used by minority businessesHere only 1 type of funding ie govt funding is discussed. No mention or contrasting different funding
D. correct a misconception about minority entrepreneurshipPassage shows the ways a policy was enacted. There is nothing in the passage to support this option
E. advocate an alternative approach to funding minority entrepreneursThere is no mention of any other funding in the passage and hence govt funding may not be the "alternative approach of funding minority entrepreneurs"


3rd question OA is B not C
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Re: The United States government has a long-standing policy of using feder   [#permalink] 25 Mar 2020, 21:47
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