Economist: Most companies become less efficient over time. Some analys

Question

Economist: Most companies become less efficient over time. Some analysts suggest that all companies should dissolve and restart after no more than 20 years by replacing all employees and allowing the company infrastructure to develop anew. However, this suggestion is too extreme, because it does not acknowledge the cost of losing brand awareness, relearning best practices, and rebuilding company infrastructure.

In the economist's argument above, the two portions in boldface play which of the following roles?

In the economist's argument above, the two portions in boldface play which of the following roles?

A. The first is data offered in support of an opinion that the economist rejects; the second offers information that contradicts that data.
B. The first is an assertion that the author rejects; the second offers a premise that supports the economist's position.
C. The first is a conclusion that the economist argues against; the second is the conclusion that the economist defends.
D. The first is an observation that supports a position the economist rejects; the second supports the economist's position.
E. The first is a generalization that is used as the basis for the economist's position; the second offers additional evidence in support of that position.

shameekv1989 · Answer

i) Analysts claim :- Some analysts suggest that all companies should dissolve and restart after no more than 20 years by replacing all employees and allowing the company infrastructure to develop anew

ii) Supporting statement for Analysts claim :- Most companies become less efficient over time

iii) Economist conclusion (Rejecting Analysts claim) :- this suggestion is too extreme

iv) Supporting statement for Economists conclusion :- it does not acknowledge the cost of losing brand awareness, relearning best practices, and rebuilding company infrastructure

Answer D -> The first (i.e. point no ii) is an observation that supports a position (point no i) the economist rejects (point no iii); the second supports the economist's position (i.e. point no iv)

ArunSharma12 · Answer

A. The first is data offered in support of an opinion that the economist rejects; the second offers information that contradicts that data.
 BF1: this is correct. this supports analysts view that all companies should dissolve and restart in 20 years.
BF2: This is incorrect. The second has no bearing on the claim made in BF1 
B. The first is an assertion that the author rejects; the second offers a premise that supports the economist's position.
 BF1: this is incorrect. Author does not go against the claim that companies become less efficient over time.
BF2: this is correct. 
C. The first is a conclusion that the economist argues against; the second is the conclusion that the economist defends.
 BF1: this is incorrect.
BF2: this is incorrect. second is the reasoning presented to support the conclusion 
D. The first is an observation that supports a position the economist rejects; the second supports the economist's position.
 BF1: this is correct. first supports analysts view that all companies should dissolve and restart in 20 years
BF2: this is also correct 
E. The first is a generalization that is used as the basis for the economist's position; the second offers additional evidence in support of that position.
 BF1: this is incorrect.
BF2: this is correct 
Ans: D

Kinshook · Answer

Economist: Most companies become less efficient over time. Some analysts suggest that all companies should dissolve and restart after no more than 20 years by replacing all employees and allowing the company infrastructure to develop anew. However, this suggestion is too extreme, because it does not acknowledge the cost of losing brand awareness, relearning best practices, and rebuilding company infrastructure.

In the economist's argument above, the two portions in boldface play which of the following roles?

In the economist's argument above, the two portions in boldface play which of the following roles?

A.  The first is data offered in support of an opinion that the economist rejects ;  the second offers information that contradicts that data. 
B.  The first is an assertion that the author rejects ;  the second offers a premise that supports the economist's position. 
C.  The first is a conclusion that the economist argues against ;  the second is the conclusion that the economist defends. 
D.  The first is an observation that supports a position the economist rejects ;  the second supports the economist's position. 
E.  The first is a generalization that is used as the basis for the economist's position ; the second offers  additional  evidence in support of that position.

IMO D

gandalfthewhite · Answer

Identify the Question Type:

The bolded sentences leave no doubt: this is a Bolded Statement question. The correct answer will describe how each portion functions in the argument in the stimulus.

Untangle the Stimulus:

The first sentence, which is also the first bolded statement, describes a negative thing that happens to most businesses. The second sentence describes a possible solution recommended by “some analysts.” In the third sentence, the author rejects this solution, and then, in the second bolded portion beginning after the evidence keyword, “because,” gives his evidence.

Predict the Answer:

Neither the analysts’ suggestion nor the author’s conclusion is bolded. Both bolded statements are evidence: the first is used to support the analysts' suggestion, and the second is the evidence offered in support of the author's opinion.

Evaluate the Choices:

(A) is an apt description of the first statement, but it misstates the function of the second statement. The author rejects the analysts’ proposal, not the information on which their proposal is based.

(B) is incorrect because the author does not reject the first statement. The author merely rejects the recommended action to be taken on the basis of the first statement.

(C) is incorrect because the economist does not argue against the first statement.

(D)  matches the prediction and is correct. The first statement provides the basis for the analysts’ proposal, and the second statement explains why the author rejects that proposal.

(E) is wrong because it claims that the first statement supports the economist's position, when in fact it supports the position of the analysts, with whom the economist disagrees.

TAKEAWAY : Predicting the answer on a Bolded Statement question will be very helpful when working through the choices. The best way to come up with a prediction is to untangle the stimulus by identifying the purpose of each sentence in the stimulus.

jaisonsunny77 · Answer

Most companies become less efficient over time .  Some analysts suggest that all companies should dissolve and restart after no more than 20 years by replacing all employees and allowing the company infrastructure to develop anew.  However, this suggestion is too extreme, because  it does not acknowledge the cost of losing brand awareness, relearning best practices, and rebuilding company infrastructure.

The first boldfaced portion is a  general  premise; the second sentence ( highlighted in green ) is a suggestion that is based on the first boldfaced statement.

The second boldfaced statement is a part of the economist's opinion (or position) that opposes the premise  highlighted in green.

(D) is therefore the right answer.

VerbalBot · Answer

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.

Economist: Most companies become less efficient over time. Some analys

Prep Toolkit

Top 5 GMAT Debrief Videos

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

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

Economist: Most companies become less efficient over time. Some analys

Prep Toolkit

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

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards