The skyline of Beirut, the capital of Lebanon, is dotted by constructi

Question

The skyline of Beirut, the capital of Lebanon, is dotted by construction cranes. From the terrace of a swanky hotel, one can see at least a dozen and a half such cranes, building luxury apartments that cost up to $1 million each. The rich in the country deliberate on investment opportunities and socialize with Gulf tourists who visit the capital to enjoy the indulgent nightlife. Construction, finance, and tourism industries drive the economy of Lebanon, and all three appear to be growing at first glance.

However, the reality of the situation in Lebanon is quite grim. The construction industry, which employs one in ten people, is not in good shape. Despite all the busy cranes insight, the construction industry is turning sluggish. Firstly, In the first six months of 2018, the number of permits granted for construction activities was 9% lower than this number for the same period in 2017. Moreover, transactions of real estate also declined by 17% year on year in the first quarter of 2018. The tourism industry, which contributed significantly to Lebanon’s economy in the past, has become unreliable over the past couple of decades. It is true that the number of tourists visiting the country was at a five-year high in 2018. However, this number was insignificant compared to that during the busiest season in 2010. A political turmoil in Saudi Arabia, the country that contributes the largest share of tourist spending in Lebanon, reduced the number of Saudi visitors by 19 percent in 2018, leading to a 14% drop in hotel occupancy. The finance sector is no better. The country is headed towards a banking crisis that poses a significant threat to its currency. The first banking quarter of the year, that usually attracts investors from neighboring regions has faced a lack of interest from investors at a level never seen before – this could have serious ramifications for the country’s finances.    1 
 1. The passage is primarily concerned with:

A. Revealing the reality to bust a generally accepted notion.
B. Presenting evidence to debunk a notion about a situation falsely perceived as grim.
C. Raising concern about an unanticipated situation that is worse than it looks.
D. Presenting the truth about a situation that is opposite to what it appears to be.
E. Warning against a bleak situation by presenting statistics.

2 
 2. Which of the following can be inferred from the passage?

A. Beirut is the most visited city in Lebanon for its attractive nightlife.
B. Lebanon’s banking crisis is the most noteworthy hazard to the economy of the country.
C. Saudi Arabia is the country that contributes the largest share of tourists to Lebanon typically.
D. If investors from the neighboring regions agree to help, Lebanon’s economy can be saved.
E. The loss of tourism from no single country is likely to have as big a financial impact on Lebanon’s tourism economy as Saudi Arabia.

3 
 3. Which of the following is true according to the passage?

A. The indulgent nightlife of Beirut is a lucrative sector for investments.
B. The real estate business is not as unreliable as the tourism industry.
C. The construction industry is the largest employer in Lebanon at present.
D. Despite the turmoil in Saudi Arabia, more tourists visited Lebanon in 2018 than did in 2016.
E. The rich in Lebanon can find good investment opportunities with help from Gulf tourists.

4 
 4. Which of the following is not necessarily true based on the passage?

A. The number of tourists visiting Lebanon was higher in 2018 than in 2017.
B. Due to the turmoil in Saudi Arabia, there was a drop in hotel occupancy in Lebanon.
C. With regard to construction activities, the first 6 months of 2018 saw a reduction in permits granted, as compared to the previous 6 months.
D. The construction industry is one of the main industries driving the economy of Lebanon.
E. Lebanon is moving towards a banking crisis that has the potential to cause problems for the national currency.

gloomybison · Answer

1. The passage is primarily concerned with:

A. Revealing the reality to bust a generally accepted notion.
There is no generally accepted notion in the paragraph, it initially just say that economy may look great due to constructions, investments etc. but that there is also a dark side(financial crisis, slowdown in tourism etc.) that undermines the greatness

B. Presenting evidence to debunk a notion about a situation falsely perceived as grim.
it is not falsely perceiving it grim, in contrary; it is falsely believing that the situation is bright

C. Raising concern about an unanticipated situation that is worse than it looks.
It is not saying it is worse, in order to have a worse we have to have a bad. However, here we have bright look but a bad gloomy truth behind

D. Presenting the truth about a situation that is opposite to what it appears to be.
"opposite" is too harsh; paragraph is not implying that the country is doomed for eternity it just says that the situation is not as good as it look

E. Warning against a bleak situation by presenting statistics.
 Correct

2. Which of the following can be inferred from the passage?

A. Beirut is the most visited city in Lebanon for its attractive nightlife.
No info given on this one

B. Lebanon’s banking crisis is the most noteworthy hazard to the economy of the country.
No info given on this one

C. Saudi Arabia is the country that contributes the largest share of tourists to Lebanon typically.
Trap! Saudi Arabia is the country that contributes the largest share of tourist SPENDING!
"Saudi Arabia, the country that contributes the largest share of tourist spending in Lebanon"

D. If investors from the neighboring regions agree to help, Lebanon’s economy can be saved.
No info given on this one

E. The loss of tourism from no single country is likely to have as big a financial impact on Lebanon’s tourism economy as Saudi Arabia.
 Correct

3. Which of the following is true according to the passage?

A. The indulgent nightlife of Beirut is a lucrative sector for investments.
No info given on this one

B. The real estate business is not as unreliable as the tourism industry.
No info given on this one

C. The construction industry is the largest employer in Lebanon at present.
No info given on this one, we are just told that it is one of the key sectors that employs 1/10 of the country

D. Despite the turmoil in Saudi Arabia, more tourists visited Lebanon in 2018 than did in 2016.
 Correct  "It is true that the number of tourists visiting the country was at a five-year high in 2018."

E. The rich in Lebanon can find good investment opportunities with help from Gulf tourists.
No info given on this one

4. Which of the following is not necessarily true based on the passage?

A. The number of tourists visiting Lebanon was higher in 2018 than in 2017.
This is given; "It is true that the number of tourists visiting the country was at a five-year high in 2018."

B. Due to the turmoil in Saudi Arabia, there was a drop in hotel occupancy in Lebanon.
This is given; "A political turmoil in Saudi Arabia, the country that contributes the largest share of tourist spending in Lebanon, reduced the number of Saudi visitors by 19 percent in 2018, leading to a 14% drop in hotel occupancy."

C. With regard to construction activities, the first 6 months of 2018 saw a reduction in permits granted, as compared to the previous 6 months.
 Correct  We only know the comparison data for the first half of 2018 and 2017 NOT for the first 6 months of 2018 and second half of 2017

D. The construction industry is one of the main industries driving the economy of Lebanon.
This is given; "Construction, finance, and tourism industries drive the economy of Lebanon, and all three appear to be growing at first glance."

E. Lebanon is moving towards a banking crisis that has the potential to cause problems for the national currency.
This is given; "The country is headed towards a banking crisis that poses a significant threat to its currency."

AK1995 · Answer

Option D is the answer for the first question, not E.

gloomybison

D. Presenting the truth about a situation that is opposite to what it appears to be.
"opposite" is too harsh; paragraph is not implying that the country is doomed for eternity it just says that the situation is not as good as it look

"Opposite" is actually accurate. Passage says that it might look like the situation is really good but then goes on to explain the reality that it is not. The answer option D isn't saying that the country is doomed for eternity either. Like mentioned , it is simply saying that it is not as good as it looks.

gloomybison

E. Warning against a bleak situation by presenting statistics.
Correct

The passage is talking about how bad the things are but "warning" is a bit of a stretch. Yes, the author indeed says in the last line that there are going to be "serious ramifications for the country’s finances" but this is just his prediction for the future. He is not making any call to action to anyone like a government authority to take mitigation steps or to the general public to prepare for recession or anything like that so I don't think you can call this a warning at the face value. However, I do agree that you COULD assume implicitly that the author is writing this passage to try and get the government to act on the situation. If Option D weren't such a good fit, my second choice would be Option E because of this reason but since there is a better answer which doesn't force us to think beyond the scope of the passage, the answer is D.

I agree with your answers and explanations for the other questions.

ArmaanBajaj · Answer

Q1 could be E, opposite in D is too extreme

guddo · Answer

I’d say  “opposite” in (D) is not too extreme in context . The passage explicitly says the three major sectors  appear to be growing at first glance , but then says that the reality is “quite grim” and shows weakness in construction, tourism, and finance.

(E) is tempting, but it focuses more on the  method  the author uses, namely presenting statistics, than on the main purpose of the passage. The statistics are there to support the broader contrast between appearance and reality.

So (D) captures the passage better. “Opposite” does not mean that Lebanon is permanently doomed. It simply means that the underlying economic situation is substantially contrary to the prosperous picture presented at first.

The skyline of Beirut, the capital of Lebanon, is dotted by constructi

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GMAT Reading Comprehension (RC) Questions

The skyline of Beirut, the capital of Lebanon, is dotted by constructi

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

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