GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 May 2019, 19:52

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Transportation developments have greatly influenced the pace and cours

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Current Student
avatar
S
Joined: 22 Apr 2017
Posts: 110
Location: India
GMAT 1: 620 Q46 V30
GMAT 2: 620 Q47 V29
GMAT 3: 630 Q49 V26
GMAT 4: 690 Q48 V35
GPA: 3.7
GMAT ToolKit User
Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 13 Nov 2017, 08:10
2
6
Question 1
00:00
A
B
C
D
E

based on 340 sessions

27% (03:24) correct 73% (03:17) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 352 sessions

41% (01:22) correct 59% (01:14) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 327 sessions

69% (01:00) correct 31% (01:20) wrong

HideShow timer Statistics

Transportation developments have greatly influenced the pace and course of business growth in America. The early turnpike and the canal systems each broadened the market area by lowering costs and speeding distribution. But the influence of railroads dwarfed all of these previous developments. Railroads pioneered many aspects of business administration and enhanced some land values enormously. They also had an important impact on the growth of certain cities. Atlanta, for example, was transformed from a spot in the wilderness to a thriving metropolis as a result of the construction of the Western and Atlantic Railroad.

Railroads also provided a large outlet for savings.Their capital requirements were so great that they provided the first big opening for the investment banker – who by the end of the 19th century was in control of many railroads. Railroads, too, because of the stress of competition, both in construction and operation, were the first big firms to experiment with new forms of business organization such as pools and consolidation. It followed – because railroads were so vital to the nation and because their performance was tied in with the business cycle – that the highways which came later were the first form of business to have their operations regulated in large degree by the government.

Finally, railroads were responsible for a great many jobs, at one time more than 2,000,000 workers. Railroads were easily the nation’s largest employers during the post-Civil War, pre-World War I period. In addition they were responsible, indirectly, for tens of thousand of other jobs in the coal, iron, steel, and engineering industries – in such big enterprises, for example, as the Pullman Palace Car Company and the Westinghouse Air Brake Company. \ The Pullman Company, in 1909, was the eighth largest firm in the nation in terms of assets, and practically all of its output went to American railroads. Railroads, actually, were to the period 1850-1915 what the auto industry is to today in terms of being the pacesetter or bellwether of the economy. The biggest difference is that no one railroad ever dominated the rail industry as Ford and GM once dominated the auto industry.

1. Which of the following can be logically inferred from the passage?

A) Early turnpike and canal systems were not largely regulated by the U.S. government
B) Current automakers directly employ more workers than did the railroad industry
C) The Pullman Car Company had more assets than the Westinghouse Brake Company
D) Railroads dramatically increased the land values in Atlanta
E) Highways are more regulated today than railroads.


2. It can be inferred from the passage that the railroad system:

A. Had a greater influence on American markets than the American highway system
B. Required more capital than any other business before
C. Increased all land values across the U.S.
D. Involved strong competition among the companies that formed it
E. Created more employment than any industry before.


3. During the post-Civil War, pre-World War I period, if the railroad business was declining it could be expected that:

A. Investment banking would decline
B. Land values would decline
C. Production at the Pullman Company would decline
D. U.S. savings would decline
E. Car production would increase



Moderators: Kindly collate this post with https://gmatclub.com/forum/transportation-developments-have-greatly-influenced-the-pace-and-cours-218527.html It has only one question.
Manager
Manager
avatar
B
Joined: 13 Nov 2017
Posts: 57
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 05 Jan 2018, 05:08
3
This is my reasoning. I hope this can helpful to all.

1. Which of the following can be logically inferred from the passage?

A) Early turnpike and canal systems were not largely regulated by the U.S. government
-> Correct.
Last sentence of 2nd paragraph :
that the highways which came later were the first form of business to have their operations regulated
in large degree by the government
We can infer that before the highways, there was no regulation about turnpike and canal system

B) Current automakers directly employ more workers than did the railroad industry
-> Not mentioned. We cannot assume about this. There is no information about this.
C) The Pullman Car Company had more assets than the Westinghouse Brake Company
-> Not mentioned. We cannot assume about this. There is no information about this.
D) Railroads dramatically increased the land values in Atlanta
-> I confused between A and D, but I do not select D
There is a possibility that a spot in wilderness is more valuable, for example,
if there is huge gold mine, it can be more values than a thriving metropolis.
We can find correct information about A, but hard to find correct information about D.
E) Highways are more regulated today than railroads.
-> Not mentioned. We cannot assume about this. There is no information about this.


2. It can be inferred from the passage that the railroad system:

A. Had a greater influence on American markets than the American highway system
-> Not mentioned. We cannot assume about this. There is no information about this.
B. Required more capital than any other business before
-> Not mentioned. We cannot assume about this. There is no information about this.
C. Increased all land values across the U.S.
-> Not mentioned. We cannot assume about this. There is no information about this.
D. Involved strong competition among the companies that formed it
-> Correct.
4th line of second paragraph :
Railroads,too,because of the stress of competition, both in construction and operation
E. Created more employment than any industry before.
-> Not mentioned. We cannot assume about this. There is no information about this.

3. During the post-Civil War, pre-World War I period, if the railroad business was declining it could be expected that:

A. Investment banking would decline
B. Land values would decline
C. Production at the Pullman Company would decline
D. U.S. savings would decline
E. Car production would increase

C is correct.
We have to see the word position about 'the post-Civil War, pre-World War 1'
3rd paragraph has that contents about this
'In addition they(Railroads) were responsible,indirectly, ~ for example,
as the Pullman Palace Car Company,in the Westinghouse Air Brake Company.'
From this sentence, we can infer that without Railroads, Pullman Palace Company's
car manufacturing would decline.
MBA Section Director
User avatar
V
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 2520
GPA: 4
WE: Engineering (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 23 Oct 2018, 18:44

+1 kudos to the posts containing answer explanations of all questions


_________________
Intern
Intern
avatar
B
Joined: 14 May 2018
Posts: 3
Location: United States (GA)
Concentration: Strategy, General Management
WE: Consulting (Energy and Utilities)
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 17 Jan 2019, 16:23
HG0815 wrote:
This is my reasoning. I hope this can helpful to all.

1. Which of the following can be logically inferred from the passage?

A) Early turnpike and canal systems were not largely regulated by the U.S. government
-> Correct.
Last sentence of 2nd paragraph :
that the highways which came later were the first form of business to have their operations regulated
in large degree by the government
We can infer that before the highways, there was no regulation about turnpike and canal system

B) Current automakers directly employ more workers than did the railroad industry
-> Not mentioned. We cannot assume about this. There is no information about this.
C) The Pullman Car Company had more assets than the Westinghouse Brake Company
-> Not mentioned. We cannot assume about this. There is no information about this.
D) Railroads dramatically increased the land values in Atlanta
-> I confused between A and D, but I do not select D
There is a possibility that a spot in wilderness is more valuable, for example,
if there is huge gold mine, it can be more values than a thriving metropolis.
We can find correct information about A, but hard to find correct information about D.
E) Highways are more regulated today than railroads.
-> Not mentioned. We cannot assume about this. There is no information about this.


2. It can be inferred from the passage that the railroad system:

A. Had a greater influence on American markets than the American highway system
-> Not mentioned. We cannot assume about this. There is no information about this.
B. Required more capital than any other business before
-> Not mentioned. We cannot assume about this. There is no information about this.
C. Increased all land values across the U.S.
-> Not mentioned. We cannot assume about this. There is no information about this.
D. Involved strong competition among the companies that formed it
-> Correct.
4th line of second paragraph :
Railroads,too,because of the stress of competition, both in construction and operation
E. Created more employment than any industry before.
-> Not mentioned. We cannot assume about this. There is no information about this.

3. During the post-Civil War, pre-World War I period, if the railroad business was declining it could be expected that:

A. Investment banking would decline
B. Land values would decline
C. Production at the Pullman Company would decline
D. U.S. savings would decline
E. Car production would increase

C is correct.
We have to see the word position about 'the post-Civil War, pre-World War 1'
3rd paragraph has that contents about this
'In addition they(Railroads) were responsible,indirectly, ~ for example,
as the Pullman Palace Car Company,in the Westinghouse Air Brake Company.'
From this sentence, we can infer that without Railroads, Pullman Palace Company's
car manufacturing would decline.


For Question 2: I selected D as well but that was based off the last sentence of the passage. "The biggest difference is that no one railroad ever dominated the rail industry as Ford and GM once dominated the auto industry." That made more sense to me.
Manager
Manager
avatar
B
Joined: 03 Dec 2018
Posts: 185
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 06 May 2019, 06:40
GMATNinja, workout, GMATNinjaTwo, u1983, SajjadAhmad, Gnpth

In Q1 I understand A is right, but why is option D wrong. Is it because of the word dramatically??
Please explain.

Thank You
Manager
Manager
avatar
B
Joined: 11 Aug 2017
Posts: 50
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 13 May 2019, 02:06
mallya12 wrote:
GMATNinja, workout, GMATNinjaTwo, u1983, SajjadAhmad, Gnpth

In Q1 I understand A is right, but why is option D wrong. Is it because of the word dramatically??
Please explain.

Thank You



My logic says, since it is a inference question and the information directly stated should not be considered as a inferred information. If you see A you are extracting it using other information that talks about highway n government.

hope it helps.
Senior Manager
Senior Manager
User avatar
G
Joined: 03 Mar 2017
Posts: 291
Reviews Badge CAT Tests
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 18 May 2019, 23:45
1
mallya12 wrote:
GMATNinja, workout, GMATNinjaTwo, u1983, SajjadAhmad, Gnpth

In Q1 I understand A is right, but why is option D wrong. Is it because of the word dramatically??
Please explain.

Thank You


Read these lines in first paragraph.

Quote:
Railroads pioneered many aspects of business administration and enhanced some land values enormously. They also had an important impact on the growth of certain cities. Atlanta, for example, was transformed from a spot in the wilderness to a thriving metropolis as a result of the construction of the Western and Atlantic Railroad.


It is told that Railroad had important impact on the growth of certain cities. Atlanta is one such example .
Nowhere Atlanta is mapped to (increased land values) i.e option D.

We cannot infer option D. Hence incorrect.
_________________
--------------------------------------------------------------------------------------------------------------------------
All the Gods, All the Heavens, and All the Hells lie within you.
Senior Manager
Senior Manager
User avatar
G
Joined: 03 Mar 2017
Posts: 291
Reviews Badge CAT Tests
Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 18 May 2019, 23:51
VeritasKarishma GMATNinja AjiteshArun generis

I marked B for question 2 after reading below lines.

Quote:
Railroads also provided a large outlet for savings.Their capital requirements were so great that they provided the first big opening for the investment banker


I though that first big opening for the investment banker means such a huge capital was never required before by any other industry.

Please help.
_________________
--------------------------------------------------------------------------------------------------------------------------
All the Gods, All the Heavens, and All the Hells lie within you.
Veritas Prep GMAT Instructor
User avatar
D
Joined: 16 Oct 2010
Posts: 9218
Location: Pune, India
Re: Transportation developments have greatly influenced the pace and cours  [#permalink]

Show Tags

New post 19 May 2019, 00:07
warrior1991 wrote:
VeritasKarishma GMATNinja AjiteshArun generis

I marked B for question 2 after reading below lines.

Quote:
Railroads also provided a large outlet for savings.Their capital requirements were so great that they provided the first big opening for the investment banker


I though that first big opening for the investment banker means such a huge capital was never required before by any other industry.

Please help.


You cannot establish that they required more capital than any other business before. Perhaps setting up a bank requires more capital but there were rich houses who had already invested such money in setting up banks. Perhaps these rich houses did not want to invest in railways.
All we know is that railways provided the first big opening for investment bankers. Perhaps this method of obtaining capital wasn't popular before and came about later while railways were coming up on the scene and they provided the first big opportunity to investment bankers.

Usually, until the passage explicitly mentions a superlative relation (biggest, largest, most...), we cannot establish it because a lot of other scenarios are possible.

Here, the passage mentions "... because of the stress of competition..." and hence we can easily conclude (D).
_________________
Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >
GMAT Club Bot
Re: Transportation developments have greatly influenced the pace and cours   [#permalink] 19 May 2019, 00:07
Display posts from previous: Sort by

Transportation developments have greatly influenced the pace and cours

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.