|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Updated on: 03 Jun 2018, 09:15
Originally posted by AgarwalArpit20 on 03 Jun 2018, 07:38.
Last edited by Bunuel on 03 Jun 2018, 09:15, edited 1 time in total.
Last edited by Bunuel on 03 Jun 2018, 09:15, edited 1 time in total.
Formatted.
Kudos
Bookmarks
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
94% (01:35) correct
6%
(01:45)
wrong
based on 599
sessions
History
Date
Time
Result
Not Attempted Yet
Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid on the basis of productivity and corporate profits, and a wage rate that is not attached to a particular job.
Paradoxically, these guarantees do not discourage factory owners from introducing labor-saving machinery. Such innovations are to the factory owners’ advantage despite the fact that the owners must protect the wages of their workers.
Which of the following, if true, most helps to explain why the introduction of labor-saving machinery is advantageous to factory owners?
A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her previous productivity.
B. Labor-saving machinery increases productivity, thus yielding profits that more than cover the cost of retraining workers for other jobs.
C. The purchase and maintenance of new machinery adds significantly to the final cost of the goods produced.
D. Factory workers demand a change of procedure in the routine tasks they perform.
E. Limited competition exists among Beltanian factories for consumer markets.
Paradoxically, these guarantees do not discourage factory owners from introducing labor-saving machinery. Such innovations are to the factory owners’ advantage despite the fact that the owners must protect the wages of their workers.
Which of the following, if true, most helps to explain why the introduction of labor-saving machinery is advantageous to factory owners?
A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her previous productivity.
B. Labor-saving machinery increases productivity, thus yielding profits that more than cover the cost of retraining workers for other jobs.
C. The purchase and maintenance of new machinery adds significantly to the final cost of the goods produced.
D. Factory workers demand a change of procedure in the routine tasks they perform.
E. Limited competition exists among Beltanian factories for consumer markets.
26 Jun 2021, 10:15
Kudos
Bookmarks
AgarwalArpit20
OFFICIAL EXPLANATION
If the second answer choice is true, introducing labor-saving machinery results in additional profits even if it also requires the retraining of workers. Hence, this answer choice demonstrates the advantages to the factory owners of labor-saving machinery. Thus, B is the correct answer.
The first answer choice is incorrect. Productivity in a previous job may relate to productivity in the job for which a worker is hired. However, if the worker’s job is eliminated by new machinery, the factory owner loses the advantage of having been able to select a highly productive worker for that job. There is no indication in this answer choice of what advantage, if any, the owner gains. C is incorrect. Since increased costs, other things being equal, mean decreased profits, this answer choice suggests the change is disadvantageous to the factory owners. D is also incorrect. Changes of procedure may result for those employees whose jobs are eliminated by the introduction of machinery, but would not necessarily result for a substantial number of factory workers. The owners have an advantage only if a substantial number of workers have been satisfied. Thus, this fourth answer choice cannot explain why the change is advantageous. The last answer choice is incorrect. Limited competition might imply that the factory owners will be able to sell their products, even if the price must be raised to cover new machinery as well as wages. Although this does not harm the factory owners, it does not suggest an advantage either.
General Discussion
03 Jun 2018, 08:33
Kudos
Bookmarks
the answer is B.
As it is not entirely clear off the bat what we are looking for, we'll use the
A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her
previous productivity. Not clear how this is relevant
B. Labor-saving machinery increases productivity, thus yielding profits that more than cover
the cost of retraining workers for other jobs. Yes! not only is this obviously a good effect, it is also explicitly a stronger effect than the negative one mentioned in the stem (needing to keep the workers and pay them quite a lot,, in addition to retraining cost)
C. The purchase and maintenance of new machinery adds significantly to the final cost of the
goods produced. No - this hurts the explanation, giving a reason why this would hurt owners
D. Factory workers demand a change of procedure in the routine tasks they perform. Perhaps this helps a little (in that it tells us that the factory would have an additional reason to switch workers around, which the machines require), but it definitely doesn't give as strong a reason as (B) to implement this (why should the owners care that workers demand this? Why not switch them amongst themselves - who needs machines to implement this?)
E. Limited competition exists among Beltanian factories for consumer markets No- all this tells us is that the stakes are high, not that is a good or bad move either way
As it is not entirely clear off the bat what we are looking for, we'll use the
Alternative
approach and look at the answers, looking for a reason tat labor sting machinery would be good for the owners:A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her
previous productivity. Not clear how this is relevant
B. Labor-saving machinery increases productivity, thus yielding profits that more than cover
the cost of retraining workers for other jobs. Yes! not only is this obviously a good effect, it is also explicitly a stronger effect than the negative one mentioned in the stem (needing to keep the workers and pay them quite a lot,, in addition to retraining cost)
C. The purchase and maintenance of new machinery adds significantly to the final cost of the
goods produced. No - this hurts the explanation, giving a reason why this would hurt owners
D. Factory workers demand a change of procedure in the routine tasks they perform. Perhaps this helps a little (in that it tells us that the factory would have an additional reason to switch workers around, which the machines require), but it definitely doesn't give as strong a reason as (B) to implement this (why should the owners care that workers demand this? Why not switch them amongst themselves - who needs machines to implement this?)
E. Limited competition exists among Beltanian factories for consumer markets No- all this tells us is that the stakes are high, not that is a good or bad move either way
