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

It is currently 20 Oct 2018, 10:12

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

V21-08

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

Hide Tags

Manager
Manager
avatar
B
Joined: 19 May 2015
Posts: 128
Premium Member
V21-08  [#permalink]

Show Tags

New post 15 Feb 2018, 19:37
1
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

50% (00:54) correct 50% (00:16) wrong based on 24 sessions

HideShow timer Statistics

Which of the following most logically completes the argument?

During the 1930s, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to administer financial relief to the country, which had been devastated by the 1929 stock market crash and the ensuing economic depression. In the decades following the depression, however, policymakers grew uncomfortable with the amount of power that had been given to the federal government and sought to discontinue many of the agencies created under the New Deal. Although they feared another economic depression, many prominent economists of that time sided with those policymakers, since


A. further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
B. many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
C. most Americans feared expansion of federal authority more than they feared another economic depression.
D. the power and authority of many agencies created under the New Deal had expanded well beyond the limits defined in their respective agency charters.
E. most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.
Economist GMAT Tutor Discount CodesVeritas Prep GMAT Discount CodesMagoosh Discount Codes
Manager
Manager
avatar
B
Joined: 19 May 2015
Posts: 128
Premium Member
Re V21-08  [#permalink]

Show Tags

New post 15 Feb 2018, 19:37
Official Solution:


Which of the following most logically completes the argument?

During the 1930s, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to administer financial relief to the country, which had been devastated by the 1929 stock market crash and the ensuing economic depression. In the decades following the depression, however, policymakers grew uncomfortable with the amount of power that had been given to the federal government and sought to discontinue many of the agencies created under the New Deal. Although they feared another economic depression, many prominent economists of that time sided with those policymakers, since


A. further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
B. many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
C. most Americans feared expansion of federal authority more than they feared another economic depression.
D. the power and authority of many agencies created under the New Deal had expanded well beyond the limits defined in their respective agency charters.
E. most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.


The conclusion is that "many prominent economists of that time sided with those policymakers", implying that the economists, like the policymakers, "grew uncomfortable with the amount of power that had been given to the federal government and sought to discontinue many of the agencies created under the New Deal." How do we arrive at that conclusion

The agencies created under the New Deal were designed to administer financial relief to the country DURING an economic depression

AFTER the economic depression ("in the decades following the depression"), economists and policymakers were more concerned with the amount of power those agencies had given to the federal government than with the administration of financial relief... why

If the agencies administering financial relief are useful in preventing an economic depression, we wouldn't expect the economists to want to discontinue those agencies

However, if those agencies are only useful in helping to end an economic depression and not necessarily in preventing a new economic depression, then the economists' desire to discontinue those agencies AFTER the depression makes sense

(A) According to this statement, FURTHER expansion of federal authority would increase the risk of another economic depression. This answer choice is tempting because we know that the economists feared another recession. But the policymakers and economists wanted to DISCONTINUE many of the New Deal agencies, not just prevent further expansion of federal authority. Choice (A) does not explain why the economists want to REDUCE the level of federal authority, so we can eliminate (A)

(B) We are told that the policymakers and economists wanted to discontinue many of the New Deal agencies AFTER the economic depression, not during the depression. If the agencies administering financial relief are useful in preventing an economic depression, we wouldn't expect the economists to want to discontinue those agencies. However, choice (B) tells us that those agencies were designed only to provide financial relief (i.e. DURING an economic depression), not to maintain economic stability (i.e. AFTER an economic depression). This statement explains the economists' point of view, so let's hang on to choice (B)

(C) This statement tells us how "most americans" felt but does not explain the point of view of the economists, so choice (C) can be eliminated

(D) The power and authority of the government agencies exceeded the limits defined when those agencies were created, but is that necessarily a bad thing? This information only tells us that the power of those agencies expanded but does not explain WHY economists grew uncomfortable with that expansion of power. Furthermore, choice (D) does not explain why the economists would want to get rid of agencies that are seemingly designed to combat economic depressions. We can eliminate choice (D

(E) This choice explains why the policymakers wanted to discontinue the New Deal agencies, but it does not explain why the economists wanted to do so. Choice (E) can be eliminated

Choice (B) is the best answer


Answer: B
Manager
Manager
User avatar
S
Joined: 28 Jul 2016
Posts: 129
Location: India
GMAT 1: 680 Q50 V32
GPA: 3.97
Re V21-08  [#permalink]

Show Tags

New post 20 Sep 2018, 21:50
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. Between option A and B. Both are close. I do not agree with b's explanation
_________________

Please give Kudos. Kudos encourage active discussions and help the community grow

Manager
Manager
avatar
S
Joined: 12 Mar 2017
Posts: 221
Location: India
Concentration: Strategy, General Management
GMAT 1: 630 Q49 V27
GPA: 4
CAT Tests
Re: V21-08  [#permalink]

Show Tags

New post 06 Oct 2018, 08:29
MartyMurray

I did not understand what is wrong with option E. The explanation above doesn't seem clear enough
Manager
Manager
User avatar
G
Joined: 24 Nov 2014
Posts: 245
GMAT 1: 800 Q51 V51
Re: V21-08  [#permalink]

Show Tags

New post 06 Oct 2018, 16:18
Prateek176 wrote:
I did not understand what is wrong with option E. The explanation above doesn't seem clear enough

I tend to agree with what the explanation says about (E).

To complete the passage, we need a reason why the economists sided with the policymakers.

Let's look at (E):

E. most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary

(E) gives us no information regarding why the economists would side with the policymakers. It tells us only why most policymakers were against regulation of the market.

By the way, another issue with (E) is that the argument is about reasons for discontinuing the existence of certain agencies, while (E) is about regulating the market, which seems to be a topic different from discontinuing the existence of agencies.
_________________

Marty Murray
GMAT Coach
m.w.murray@hotmail.com
http://infinitemindprep.com

GMAT Club Bot
Re: V21-08 &nbs [#permalink] 06 Oct 2018, 16:18
Display posts from previous: Sort by

V21-08

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

Moderators: chetan2u, Bunuel



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®.