Last visit was: 24 Apr 2026, 11:12 It is currently 24 Apr 2026, 11:12
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
avatar
inboxsaukar
Joined: 31 Jul 2014
Last visit: 03 Jun 2015
Posts: 7
Own Kudos:
99
 [6]
Given Kudos: 11
Posts: 7
Kudos: 99
 [6]
4
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,814
Own Kudos:
811,044
 [1]
Given Kudos: 105,873
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,814
Kudos: 811,044
 [1]
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
General Discussion
User avatar
InstantMBA
Joined: 03 Mar 2013
Last visit: 08 Dec 2021
Posts: 30
Own Kudos:
Given Kudos: 40
Posts: 30
Kudos: 113
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Senthil7
Joined: 31 Mar 2016
Last visit: 05 Mar 2017
Posts: 322
Own Kudos:
Given Kudos: 197
Location: India
Concentration: Operations, Finance
GMAT 1: 670 Q48 V34
GPA: 3.8
WE:Operations (Commercial Banking)
GMAT 1: 670 Q48 V34
Posts: 322
Kudos: 218
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Conclusion: - The greater the division of labor in an economy, the greater the need for coordination.
Premise: - This is because increased division of labor entails a larger number of specialized producers, which
results in a greater burden on managers and, potentially, in a greater number of disruptions of
supply and production. There is always more division of labor in market economies than in
planned economies.

If all of the statements given are true, the which of the following must also be true? - Must be True question.

A. Disruptions of supply and production are more frequent in planned economies than in market economies. - Mistaken Reversal false answer or can be termed as opposite answer.
B. There are more specialized producers in planned economies than in market economies. - Mistaken Reversal false answer or can be termed as opposite answer.
C. The need for coordination in market economies is greater than in planned economies. - correct when we read the conclusion and difference between planned and market economy in premise.
D. A manager’s task is easier in a market economy than in a planned economy. - This cannot be inferred as premise merely states manager's burden with respect to division of labour is increased and it does not necessarily mean the other way round. Good example for Shell game answer
E. Division of labor functions more effectively in market economies than in planned economies. - Incorrect and opposite Answer.

.
Correct Answer is choice C
User avatar
VerbalBot
User avatar
Non-Human User
Joined: 01 Oct 2013
Last visit: 04 Jan 2021
Posts: 19,425
Own Kudos:
Posts: 19,425
Kudos: 1,010
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club VerbalBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
GMAT Club Verbal Expert
7391 posts
504 posts
358 posts