In most economies, the government plays a role in the market system.

Question

In most economies, the government plays a role in the market system. Governments enforce the “rules of the game,” impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that

A) economic surpluses are always good.
B) market shortages are a necessary evil.
C) higher prices strengthen the economy.
D) price ceilings add to the shortages.
E) surpluses are not usually created intentionally.

A) economic surpluses are always good.
B) market shortages are a necessary evil.
C) higher prices strengthen the economy.
D) price ceilings add to the shortages.
E) surpluses are not usually created intentionally.

tuanquang269 · Answer

I thought only choice D and E are the contenders. The others one is too extreme when using always or necessary, "strengthen" (although the author not sure).

Read again the passage in "These actions necessarily may create shortages or surpluses", we know the choice E is wrong. So, POE the only choice D is the correct one.

prab · Answer

D and E remains, and only D can be inferred from the passage.

GyanOne · Answer

(A) - The author takes no stance on whether surpluses are good 
(B) - The author takes no stance on whether shortages are evil 
(C) - the author does not take a stance on high prices and their being good/bad
(D) - cannot draw a direct relation between price ceilings and shortages
(E) - CORRECT. The line 'these actions necessarily may create shortages or surpluses' indicates that surpluses are not created intentionally but are the by-products of the actions mentioned in the preceding line

(E) is the correct answer

EshanTandon · Answer

In most economies, the government plays a role in the market system. Governments enforce the “rules of the game,” impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government’s playing some role in the economy is disputed. The author of the passage would probably agree that

A) economic surpluses are always good.
B) market shortages are a necessary evil.
C) higher prices strengthen the economy.
D) price ceilings add to the shortages.
E) surpluses are not usually created intentionally.

A. economic surpluses are always good. Not mentioned. 
B. market shortages are a necessary evil. Not mentioned 
C. higher prices strengthen the economy. Not mentioned 
D. price ceilings add to the shortages. Not mentioned 
E. surpluses are not usually created intentionally. Since the author supports non interference by the government so this statement which leans towards favoring free economy should be agreed upon by the author.

abhimahna · Answer

sayantanc2k  bro, your help is required here. Please help.

I added so called J(or E) as the answer but it seems OA is D.

Could you please provide your inputs?

sayantanc2k · Answer

E is not correct - government actions create surplus - this does mot imply that whether the surplus creation was intentional or unintentional.

D is also incorrect - price ceilings or price supports may create shortages or surpluses - it cannot be said (from the information in the passage), which one creates what. If the sentence were as follows, then D would be correct:

These actions may  respectively  create shortages or surpluses.

abhimahna · Answer

Sounds cool, thanks brother

So, are we saying the question in its current form is incorrect? Please confirm. I chose E as I didn't find any other answer choice that is more stronger than E.

sayantanc2k · Answer

Brother, I would hesitate to say incorrect because even in the current form option D is the best. Let's say it can be better when "respectively" is added - then there would be no ambiguity at all.

DharLog · Answer

Awful question.

I am still not agree that D has to be answer.
A,B,C are very bad.
D, E are just bad.

arpita1995 · Answer

don't understand how to approach the answer choices, please help

Socalsurfer2020 · Answer

I agree. I assess D and E are both bad choices; however, “less bad” than A-C.

The passage suggests that shortages and surpluses can be influenced by price ceilings; the passage did not say in which direction. That said, since we are required to infer from the passage, we do know that such policy does in fact have an impact on surpluses/shortages, and therefore is the best solution of the five. IMO of course.

Posted from my mobile device

rye · Answer

Both D and E have issues. D is wrong in my view because it takes away the probability by only using the word "add", such that it is definitely the case, which is not true. E has issues because it introduces the word "usually".

Thoughts?

VerbalBot · Answer

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In most economies, the government plays a role in the market system.

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In most economies, the government plays a role in the market system.

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