GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 26 Aug 2019, 03:02

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

Whereas United States economic productivity grew at an annual rate of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior Manager
Senior Manager
avatar
Joined: 05 Nov 2012
Posts: 401
Concentration: Technology, Other
GMAT ToolKit User Reviews Badge
Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post Updated on: 25 Aug 2019, 02:30
3
16
Question 1
00:00
A
B
C
D
E

based on 692 sessions

45% (03:22) correct 55% (03:36) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 726 sessions

63% (01:08) correct 37% (01:19) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 713 sessions

65% (01:09) correct 35% (01:03) wrong

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

based on 681 sessions

75% (01:11) correct 25% (01:32) wrong

HideShow timer Statistics

(This passage is excerpted from material published in 1997)
Whereas United States economic productivity grew at an annual rate of 3 percent from 1945 to 1965, it has grown at an annual rate of only about 1 percent since the early 1970’s. What might be preventing higher productivity growth? Clearly, the manufacturing sector of the economy cannot be blamed. Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence. Manufacturing, however, constitutes a relatively small proportion of the economy. In 1992, goods-producing businesses employed only 19.1 percent of American workers, whereas service-producing businesses employed 70 percent. Although the service sector has grown since the late 1970’s, its productivity growth has declined. Several explanations have been offered for this declined and for the discrepancy in productivity growth between the manufacturing and service sectors. One is that traditional measures fail to reflect service-sector productivity growth because it has been concentrated in improved quality of services. Yet traditional measures of manufacturing productivity have shown significant increases despite the under measurement of quality, whereas service productivity has continued to stagnate. Others argue that since the 1970’s, manufacturing workers, faced with strong foreign competition, have learned to work more efficiently in order to keep their jobs in the United States, but service workers, who are typically under less global competitive pressure, have not. However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons. In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.

Yet another explanation blames the federal budget deficit: if it were lower, interest rates would be lower too, thereby increasing investment in the development of new technologies, which would spur productivity growth in the service sector. There is, however, no dearth of technological resources, rather, managers in the service sector fail to take advantage of widely available skills and machines. High productivity growth levels attained by leading edge service companies indicate that service sector managers who wisely implement available technology and choose skillful workers can significantly improve their companies’ productivity. The culprits for service-sector productivity stagnation are the forces such as corporate takeovers and unnecessary governmental regulation that distract managers from the task of making optimal use of available resources.
Which of the following, if true, would most weaken the budget-deficit explanation for the discrepancy mentioned in line 57?

(A) Research shows that the federal budget deficit has traditionally caused service companies to invest less money in research and development of new technologies

(B) New technologies have been shown to play a significant role in companies that have been able to increase their service productivity

(C) In both the service sector and manufacturing, productivity improvements are concentrated in gains in quality

(D) The service sector typically requires larger investments in new technology in order to maintain productivity growth than those of manufacturing

(E) High interest rates tend to slow the growth of manufacturing productivity as much as they slow the growth of service-sector productivity in the United States




The passage states which of the following about the effect of foreign competition on the American manufacturing sector since the 1970’s?

A. It has often been exaggerated.

B. It has not been a direct cause of job loss.

C. It has in large part been responsible for the subsequent slowing of productivity growth.

D. It has slowed growth in the demand for manufactured goods in the United States.

E. It has been responsible for the majority of American jobs lost in manufacturing.




It can be inferred from the passage that which of the following was true of the United States manufacturing sector in the years immediately prior to 1980?

A. It was performing relatively poorly.

B. It was in a position of world prominence.

C. It was increasing its productivity at an annual rate of 3 percent.

D. It was increasing its productivity at an annual rate of 1 percent.

E. Its level of productivity was higher than afterward.




The author of the passage would be most likely to agree with which of the following statements about productivity improvements in United States service companies?

(A) Such improvements would be largely attributable to efficiencies resulting from corporate takeovers.

(B) Such improvements would depend more on wise implementation of technology than on managers' choice of skilled workers.

(C) Such improvements would be more easily accomplished if there were fewer governmental regulations of the service sector.

(D) Such improvements would require companies to invest heavily in the development of new technologies.

(E) Such improvements would be attributable primarily to companies' facing global competitive pressure.




Originally posted by JarvisR on 03 Jul 2015, 03:34.
Last edited by SajjadAhmad on 25 Aug 2019, 02:30, edited 6 times in total.
Updated - Complete topic (281).
Most Helpful Expert Reply
GMAT Club Verbal Expert
User avatar
D
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2776
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 21 Jul 2017, 19:05
9
Ashy Boy wrote:
8 minutes for this passage. Got 3 correct. Can someone explain why the answer for Question 1 is option E and not A?

First, remember what we are trying to explain: "Several explanations have been offered for [the decline in the service sector's productivity growth] and for the discrepancy in productivity growth between the manufacturing and service sectors."

One possible explanation for this discrepancy in productivity growth is the budget-deficit explanation:
Quote:
Yet another explanation blames the federal budget deficit: if it were lower, interest rate would be lower too, thereby increasing investment in the development of new technologies, which would spur productivity growth in the service sector.

  • The author contends that if the federal budget deficit were lower, then the interest rate would be lower too.
  • If the interest rate were lower, investment in the development of new technologies would increase.
  • Development of new technologies would spur productivity growth in the service sector. (note that the author does not say that the new technologies would spur productivity growth in the manufacturing sector)

Quote:
(A) Research shows that the federal budget deficit has traditionally caused service companies to invest less money in research and development of new technologies

This statement is consistent with the author's explanation, implying that a federal budget deficit decreases the amount of investment in new technologies. This does not WEAKEN the author's explanation, so (A) can be eliminated.

Quote:
(E) High interest rates tend to slow the growth of manufacturing productivity as much as they slow the growth of service-sector productivity in the United States

If high interest rates slowed growth equally in BOTH sectors, then the interest rates would not explain the DIFFERENCE (discrepancy) in productivity growth between the manufacturing and service sectors. This goes against the logic described above, thus weakening the explanation.

I hope that helps!
_________________
GMAT/GRE tutor @ www.gmatninja.com (we're hiring!) | GMAT Club Verbal Expert | Instagram | Blog | Bad at PMs

Beginners' guides to GMAT verbal: RC | CR | SC

YouTube LIVE verbal webinars: Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations: All QOTDs | Subscribe via email | RSS

Need an expert reply? Hit the request verbal experts' reply button; be specific about your question, and tag @GMATNinja. Priority is always given to official GMAT questions.

SC articles & resources: How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

RC, CR, and other articles & resources: All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal
Most Helpful Community Reply
Director
Director
User avatar
G
Joined: 26 Oct 2016
Posts: 624
Location: United States
Concentration: Marketing, International Business
Schools: HBS '19
GMAT 1: 770 Q51 V44
GPA: 4
WE: Education (Education)
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 27 Jun 2017, 19:44
9
1)You need to look at the entire passage in order to be able to answer any question as it would put the highlighted parts in context. Just to summarise, let's consider the below points:
1. Economic growth in the US has been sluggish
2. Manufacturing employs only 19.1% American workers whereas services employ 70% of the American workers
3. Productivity has grown in the manufacturing sector whereas it has shown a decline in services
4. Several possible arguments to showcase why manufacturing has shown an improvement in productivity whereas despite growth, services has shown a productivity decline
5. The author now talks about another possible reason why manufacturing is growing whereas services has stagnated
i. Argument by proponents: lower federal budget deficit -> lower interest rate -> higher investment in development of new technologies -> higher growth in services sector
ii. Service-sector managers who implement available technology , choose skillful workers can improve their companys' productivity
iii. Culprits of service sector stagnation: corporate takeovers and unnecessary governmental regulation
While you have not highlighted the part which the question is referring to, I am assuming it is the one mentioned in Premise 5 (i) with the linkage between federal budget deficit and investment in technology for service sector.
Now, looking at the options:
A. This option ends up strengthening the explanation given by the proponent of the federal budget deficit theory. INCORRECT
B. This again strengthens the argument as it implies that new technology, which is currently being hindered by the federal budget deficit, can actually improve the productivity in service sector companies. INCORRECT
C. This is not in context to the highlighted text. The highlighted text is about whether a particular economic policy can improve productivity in the service sector. This option gives more details about what the productivity improvements will end up impacting. INCORRECT
D. An option which strengthen the relationship in the highlighted text. It highlights the difference between service and manufacturing implying higher investment in technology for service which is being hindered by the federal budget deficit. INCORRECT
E. The passage at multiple points mentions that it is trying to find the root cause for why manufacturing industry productivity is registering a growth while the service industry productivity is declining. For a reason to be valid it should impact the service industry more than it does manufacturing. This option attacks that gap showcasing that the high interest rates impact both the industries equally and this cannot be looked at as a cause for sluggish service sector productivity alone. CORRECT
Thus, the answer is E.

2)"Please go through the line "since the 1970’s, manufacturing workers, faced with strong foreign competition, have learned to work more efficiently in order to keep their jobs in the United States, but service workers, who are typically under less global competitive pressure, have not. However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons. In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.". Hence A.

3)"Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence." It is asking immediate before 1980. Hence A.

4)"The culprits for service-sector productivity stagnation are the forces—such as corporate takeovers and unnecessary governmental regulation—that distract managers from the task of making optimal use of available resources". Only C makes sense.
_________________
Thanks & Regards,
Anaira Mitch
General Discussion
Manager
Manager
avatar
Joined: 06 Mar 2014
Posts: 84
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 01 Sep 2015, 02:56
JarvisR:

Can you explain how is answer to question 3 option C and not option A.
A says ,"fewer governmental regulations" , while passage says, "unnecessary governmental regulations".
Then why can't option A be the answer.

mikemcgarry
Manager
Manager
User avatar
B
Joined: 18 Apr 2016
Posts: 63
Location: India
GMAT 1: 510 Q46 V17
WE: Web Development (Energy and Utilities)
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 06 Dec 2017, 10:06
anairamitch1804 wrote:
1)You need to look at the entire passage in order to be able to answer any question as it would put the highlighted parts in context. Just to summarise, let's consider the below points:
1. Economic growth in the US has been sluggish
2. Manufacturing employs only 19.1% American workers whereas services employ 70% of the American workers
3. Productivity has grown in the manufacturing sector whereas it has shown a decline in services
4. Several possible arguments to showcase why manufacturing has shown an improvement in productivity whereas despite growth, services has shown a productivity decline
5. The author now talks about another possible reason why manufacturing is growing whereas services has stagnated
i. Argument by proponents: lower federal budget deficit -> lower interest rate -> higher investment in development of new technologies -> higher growth in services sector
ii. Service-sector managers who implement available technology , choose skillful workers can improve their companys' productivity
iii. Culprits of service sector stagnation: corporate takeovers and unnecessary governmental regulation
While you have not highlighted the part which the question is referring to, I am assuming it is the one mentioned in Premise 5 (i) with the linkage between federal budget deficit and investment in technology for service sector.
Now, looking at the options:
A. This option ends up strengthening the explanation given by the proponent of the federal budget deficit theory. INCORRECT
B. This again strengthens the argument as it implies that new technology, which is currently being hindered by the federal budget deficit, can actually improve the productivity in service sector companies. INCORRECT
C. This is not in context to the highlighted text. The highlighted text is about whether a particular economic policy can improve productivity in the service sector. This option gives more details about what the productivity improvements will end up impacting. INCORRECT
D. An option which strengthen the relationship in the highlighted text. It highlights the difference between service and manufacturing implying higher investment in technology for service which is being hindered by the federal budget deficit. INCORRECT
E. The passage at multiple points mentions that it is trying to find the root cause for why manufacturing industry productivity is registering a growth while the service industry productivity is declining. For a reason to be valid it should impact the service industry more than it does manufacturing. This option attacks that gap showcasing that the high interest rates impact both the industries equally and this cannot be looked at as a cause for sluggish service sector productivity alone. CORRECT
Thus, the answer is E.

2)"Please go through the line "since the 1970’s, manufacturing workers, faced with strong foreign competition, have learned to work more efficiently in order to keep their jobs in the United States, but service workers, who are typically under less global competitive pressure, have not. However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons. In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.". Hence A.

3)"Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence." It is asking immediate before 1980. Hence A.

4)"The culprits for service-sector productivity stagnation are the forces—such as corporate takeovers and unnecessary governmental regulation—that distract managers from the task of making optimal use of available resources". Only C makes sense.



Question 4

Answer choice C says less government regulation but the last sentence in passage says unnecessary government regulation. it is not compulsory that less regulation must be unnecessary one. I feel choice C not a right answer.

Please correct me if i am wrong.
_________________
-Yuvaraj
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Stop searching someone to motivate you.
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2382
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 06 Dec 2017, 10:30
imyuva wrote:
anairamitch1804 wrote:
1)You need to look at the entire passage in order to be able to answer any question as it would put the highlighted parts in context. Just to summarise, let's consider the below points:
1. Economic growth in the US has been sluggish
2. Manufacturing employs only 19.1% American workers whereas services employ 70% of the American workers
3. Productivity has grown in the manufacturing sector whereas it has shown a decline in services
4. Several possible arguments to showcase why manufacturing has shown an improvement in productivity whereas despite growth, services has shown a productivity decline
5. The author now talks about another possible reason why manufacturing is growing whereas services has stagnated
i. Argument by proponents: lower federal budget deficit -> lower interest rate -> higher investment in development of new technologies -> higher growth in services sector
ii. Service-sector managers who implement available technology , choose skillful workers can improve their companys' productivity
iii. Culprits of service sector stagnation: corporate takeovers and unnecessary governmental regulation
While you have not highlighted the part which the question is referring to, I am assuming it is the one mentioned in Premise 5 (i) with the linkage between federal budget deficit and investment in technology for service sector.
Now, looking at the options:
A. This option ends up strengthening the explanation given by the proponent of the federal budget deficit theory. INCORRECT
B. This again strengthens the argument as it implies that new technology, which is currently being hindered by the federal budget deficit, can actually improve the productivity in service sector companies. INCORRECT
C. This is not in context to the highlighted text. The highlighted text is about whether a particular economic policy can improve productivity in the service sector. This option gives more details about what the productivity improvements will end up impacting. INCORRECT
D. An option which strengthen the relationship in the highlighted text. It highlights the difference between service and manufacturing implying higher investment in technology for service which is being hindered by the federal budget deficit. INCORRECT
E. The passage at multiple points mentions that it is trying to find the root cause for why manufacturing industry productivity is registering a growth while the service industry productivity is declining. For a reason to be valid it should impact the service industry more than it does manufacturing. This option attacks that gap showcasing that the high interest rates impact both the industries equally and this cannot be looked at as a cause for sluggish service sector productivity alone. CORRECT
Thus, the answer is E.

2)"Please go through the line "since the 1970’s, manufacturing workers, faced with strong foreign competition, have learned to work more efficiently in order to keep their jobs in the United States, but service workers, who are typically under less global competitive pressure, have not. However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons. In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.". Hence A.

3)"Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence." It is asking immediate before 1980. Hence A.

4)"The culprits for service-sector productivity stagnation are the forces—such as corporate takeovers and unnecessary governmental regulation—that distract managers from the task of making optimal use of available resources". Only C makes sense.



Question 4

Answer choice C says less government regulation but the last sentence in passage says unnecessary government regulation. it is not compulsory that less regulation must be unnecessary one. I feel choice C not a right answer.

Please correct me if i am wrong.


Hi imyuva,

4.The author of the passage would be most likely to agree with which of the following statements about productivity improvements in United States service companies?

(C) Such improvements would be more easily accomplished if there were fewer governmental regulations of the service sector.


The culprits for service-sector productivity stagnation are the forces such as corporate takeovers and unnecessary governmental regulation that distract managers from the task of making optimal use of available resources. ---> what this sentence means is that corporate takeovers and unnecessary governmental regulation distract managers from doing ... and thus in turn hamper productivity .

Unnecessary governmental regulation --causes--> distract managers from the task of making optimal use of available resources ----> leads to productivity stagnation
--> If the Unnecessary governmental regulations are removed, then managers should no longer be distracted and thus they can concentrate on the task of making optimal use of available resources , leading to productivity improvements .

Hope this helps!! :-)
_________________
When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
Manager
Manager
User avatar
B
Joined: 18 Apr 2016
Posts: 63
Location: India
GMAT 1: 510 Q46 V17
WE: Web Development (Energy and Utilities)
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 09 Dec 2017, 00:02
Skywalker18 wrote:
imyuva wrote:
anairamitch1804 wrote:
1)You need to look at the entire passage in order to be able to answer any question as it would put the highlighted parts in context. Just to summarise, let's consider the below points:
1. Economic growth in the US has been sluggish
2. Manufacturing employs only 19.1% American workers whereas services employ 70% of the American workers
3. Productivity has grown in the manufacturing sector whereas it has shown a decline in services
4. Several possible arguments to showcase why manufacturing has shown an improvement in productivity whereas despite growth, services has shown a productivity decline
5. The author now talks about another possible reason why manufacturing is growing whereas services has stagnated
i. Argument by proponents: lower federal budget deficit -> lower interest rate -> higher investment in development of new technologies -> higher growth in services sector
ii. Service-sector managers who implement available technology , choose skillful workers can improve their companys' productivity
iii. Culprits of service sector stagnation: corporate takeovers and unnecessary governmental regulation
While you have not highlighted the part which the question is referring to, I am assuming it is the one mentioned in Premise 5 (i) with the linkage between federal budget deficit and investment in technology for service sector.
Now, looking at the options:
A. This option ends up strengthening the explanation given by the proponent of the federal budget deficit theory. INCORRECT
B. This again strengthens the argument as it implies that new technology, which is currently being hindered by the federal budget deficit, can actually improve the productivity in service sector companies. INCORRECT
C. This is not in context to the highlighted text. The highlighted text is about whether a particular economic policy can improve productivity in the service sector. This option gives more details about what the productivity improvements will end up impacting. INCORRECT
D. An option which strengthen the relationship in the highlighted text. It highlights the difference between service and manufacturing implying higher investment in technology for service which is being hindered by the federal budget deficit. INCORRECT
E. The passage at multiple points mentions that it is trying to find the root cause for why manufacturing industry productivity is registering a growth while the service industry productivity is declining. For a reason to be valid it should impact the service industry more than it does manufacturing. This option attacks that gap showcasing that the high interest rates impact both the industries equally and this cannot be looked at as a cause for sluggish service sector productivity alone. CORRECT
Thus, the answer is E.

2)"Please go through the line "since the 1970’s, manufacturing workers, faced with strong foreign competition, have learned to work more efficiently in order to keep their jobs in the United States, but service workers, who are typically under less global competitive pressure, have not. However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons. In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.". Hence A.

3)"Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence." It is asking immediate before 1980. Hence A.

4)"The culprits for service-sector productivity stagnation are the forces—such as corporate takeovers and unnecessary governmental regulation—that distract managers from the task of making optimal use of available resources". Only C makes sense.



Question 4

Answer choice C says less government regulation but the last sentence in passage says unnecessary government regulation. it is not compulsory that less regulation must be unnecessary one. I feel choice C not a right answer.

Please correct me if i am wrong.


Hi imyuva,

4.The author of the passage would be most likely to agree with which of the following statements about productivity improvements in United States service companies?

(C) Such improvements would be more easily accomplished if there were fewer governmental regulations of the service sector.


The culprits for service-sector productivity stagnation are the forces such as corporate takeovers and unnecessary governmental regulation that distract managers from the task of making optimal use of available resources. ---> what this sentence means is that corporate takeovers and unnecessary governmental regulation distract managers from doing ... and thus in turn hamper productivity .

Unnecessary governmental regulation --causes--> distract managers from the task of making optimal use of available resources ----> leads to productivity stagnation
--> If the Unnecessary governmental regulations are removed, then managers should no longer be distracted and thus they can concentrate on the task of making optimal use of available resources , leading to productivity improvements .

Hope this helps!! :-)


Thank you for responding.

I agree this statement
Quote:
If the Unnecessary governmental regulations are removed, then managers should no longer be distracted and thus they can concentrate on the task of making optimal use of available resources , leading to productivity improvements .


Option C talks about less government regulation. Our passage doesn't tell about reducing government regulations. Even after less government regulation and 1 or 2 unnecessary regulations stays, it would stop productivity.
_________________
-Yuvaraj
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Stop searching someone to motivate you.
Director
Director
User avatar
V
Joined: 06 Jan 2015
Posts: 695
Location: India
Concentration: Operations, Finance
GPA: 3.35
WE: Information Technology (Computer Software)
Premium Member
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 20 Jan 2018, 21:13
HI GMATNinja, mikemcgarry,

Can you pls POE for below que

Quote:
2)The passage states which of the following about the effect of foreign competition on the American manufacturing sector since the 1970’s?
A. It has often been exaggerated.
B. It has not been a direct cause of job loss.
C. It has in large part been responsible for the subsequent slowing of productivity growth.
D. It has slowed growth in the demand for manufactured goods in the United States.
E. It has been responsible for the majority of American jobs lost in manufacturing.


Quote:
In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.
Does it not clearly says direct cause of job loss
_________________
आत्मनॊ मोक्षार्थम् जगद्धिताय च

Resource: GMATPrep RCs With Solution
Magoosh GMAT Instructor
User avatar
G
Joined: 28 Dec 2011
Posts: 4483
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 22 Jan 2018, 10:39
1
NandishSS wrote:
HI GMATNinja, mikemcgarry,

Can you pls POE for below que

Quote:
2)The passage states which of the following about the effect of foreign competition on the American manufacturing sector since the 1970’s?
A. It has often been exaggerated.
B. It has not been a direct cause of job loss.
C. It has in large part been responsible for the subsequent slowing of productivity growth.
D. It has slowed growth in the demand for manufactured goods in the United States.
E. It has been responsible for the majority of American jobs lost in manufacturing.


Quote:
In fact, while some manufacturing jobs have been lost due to foreign competition, many more have been lost simply because of slow growth in demand for manufactured goods.
Does it not clearly says direct cause of job loss

Dear NandishSS,

I'm happy to respond. :-)

The passage clearly says, in the sentence you quoted, that at least a few "manufacturing jobs have been lost due to foreign competition." Thus, one "effect of foreign competition effect of foreign competition" was the direct cause of the loss of at least a few jobs. Choice (B) contradicts this and is not correct.

Meanwhile, the passage says: "However, the pressure on manufacturing workers in the United States to work more efficiently has generally been overstated, often for political reasons." It has been "overstated," in other words, "exaggerated." Choice (A) is correct.

Does all this make sense?
Mike :-)
_________________
Mike McGarry
Magoosh Test Prep


Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
Intern
Intern
avatar
B
Joined: 10 Feb 2013
Posts: 5
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 19 May 2018, 20:45
Ashy Boy wrote:
8 minutes for this passage. Got 3 correct. Can someone explain why the answer for Question 1 is option E and not A?


This is because A would strengthen the argument. If the budget deficit actually does reduce investments then the reasoning remains intact. Option E equalises everything by stating that mfg and services would be affected equally and hence the argument is flawed to explain the discrepancy in the productivity rates.
Intern
Intern
avatar
Joined: 21 Jan 2019
Posts: 1
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 26 May 2019, 23:57
Why is the answer to question 3 A and not D?

Isn't it implied that the annual growth rate since early 1970s has been 1 percent.?
GMAT Club Verbal Expert
User avatar
D
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2776
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 27 Jun 2019, 12:50
warwithself wrote:
Why is the answer to question 3 A and not D?

Isn't it implied that the annual growth rate since early 1970s has been 1 percent.?

Quote:
It can be inferred from the passage that which of the following was true of the United States manufacturing sector in the years immediately prior to 1980?

A. It was performing relatively poorly.

B. It was in a position of world prominence.

C. It was increasing its productivity at an annual rate of 3 percent.

D. It was increasing its productivity at an annual rate of 1 percent.

E. Its level of productivity was higher than afterward.

"Whereas United States economic productivity grew at an annual rate of 3 percent from 1945 to 1965, [United States economic productivity] has grown at an annual rate of only about 1 percent since the early 1970’s."

Notice that these figures refer to OVERALL economic productivity in the United States, not just economic productivity in the manufacturing sector. The productivity growth rate of the manufacturing sector may have been different than the productivity growth rate of all sectors combined. (D) might be true, but, given the information in the passage, it is just as likely that (D) is NOT true.

"Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence."

From this sentence, we can infer that, before 1980, productivity improvements in manufacturing were in a position of acute decline. After 1980, productivity improvements in manufacturing were in a position of world prominence. So relative to post-1980 performance, pre-1980 performance was poor. This makes (A) the best choice!
_________________
GMAT/GRE tutor @ www.gmatninja.com (we're hiring!) | GMAT Club Verbal Expert | Instagram | Blog | Bad at PMs

Beginners' guides to GMAT verbal: RC | CR | SC

YouTube LIVE verbal webinars: Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations: All QOTDs | Subscribe via email | RSS

Need an expert reply? Hit the request verbal experts' reply button; be specific about your question, and tag @GMATNinja. Priority is always given to official GMAT questions.

SC articles & resources: How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

RC, CR, and other articles & resources: All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal
Intern
Intern
avatar
B
Joined: 21 Aug 2018
Posts: 2
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 21 Jul 2019, 11:41
HI GMATNinja, mikemcgarry,

Can you please explain answer of Q4 ? Last sentence of passage says unnecessary government regulation. it is not necessary that less regulation must be unnecessary one. So , Why we chose C as Correct Answer . Are we choosing because other option seems to be incorrect ? Because of difference in meaning between less regulation and unnecessary regulation , I chose option D as it was mentioned in the passage : thereby increasing investment in the development of new technologies, which would spur productivity growth in the service sector. Can you please explain this ?
GMAT Club Verbal Expert
User avatar
D
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2776
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 26 Jul 2019, 18:06
1
razatr wrote:
HI GMATNinja, mikemcgarry,

Can you please explain answer of Q4 ? Last sentence of passage says unnecessary government regulation. it is not necessary that less regulation must be unnecessary one. So , Why we chose C as Correct Answer . Are we choosing because other option seems to be incorrect ? Because of difference in meaning between less regulation and unnecessary regulation , I chose option D as it was mentioned in the passage : thereby increasing investment in the development of new technologies, which would spur productivity growth in the service sector. Can you please explain this ?

To answer question #4, we need to find an answer choice with which the author would most likely agree. Let's first look at (D):
Quote:
(D) Such improvements would require companies to invest heavily in the development of new technologies.

In the last paragraph, the author explores "another explanation" for the lack of growth in the service sector, and this explanation focuses on increasing investment in technological advances. However, the author disagrees with this explanation, saying that there is "no dearth (or lack) of technological resources" -- some managers just fail to use these resources wisely.

So, the author would not agree that companies need to invest heavily in the development of new technologies, because those technologies already exist. (D) is out.

After the author is done with trashing the explanation outlined above, he/she identifies the real "culprits" behind stagnation in the service sector: "corporate takeovers and unnecessary governmental regulation that distract managers from the task of making optimal use of available resources."

From this, we can infer that the author would most likely agree that productivity improvements would be "more easily accomplished if there were fewer governmental regulations of the service sector," as stated in answer choice (C).

Notice that the question asks whether the author would "most likely" agree with the correct answer choice, which is different than proving that the author would absolutely agree with that choice. Because the author would definitely not agree with any of the other choices, we can say that (C) is the best answer even if it doesn't specify that only "unnecessary" regulations are removed.

(C) is the correct answer to question #4.

I hope that helps!
_________________
GMAT/GRE tutor @ www.gmatninja.com (we're hiring!) | GMAT Club Verbal Expert | Instagram | Blog | Bad at PMs

Beginners' guides to GMAT verbal: RC | CR | SC

YouTube LIVE verbal webinars: Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations: All QOTDs | Subscribe via email | RSS

Need an expert reply? Hit the request verbal experts' reply button; be specific about your question, and tag @GMATNinja. Priority is always given to official GMAT questions.

SC articles & resources: How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

RC, CR, and other articles & resources: All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal
Director
Director
User avatar
P
Joined: 14 Feb 2017
Posts: 944
Location: Australia
Concentration: Technology, Strategy
Schools: LBS '22
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
WE: Management Consulting (Consulting)
Reviews Badge CAT Tests
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 10 Aug 2019, 00:21
Please correct Question 1 - what is line 57 referring to? Bunuel
_________________
Goal: Q49, V41

+1 Kudos if you like my post pls!
Director
Director
User avatar
P
Joined: 14 Feb 2017
Posts: 944
Location: Australia
Concentration: Technology, Strategy
Schools: LBS '22
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
WE: Management Consulting (Consulting)
Reviews Badge CAT Tests
Re: Whereas United States economic productivity grew at an annual rate of  [#permalink]

Show Tags

New post 10 Aug 2019, 00:46
Passage Map:
P1
- To argue that Manufacturing is not likely the cause of productivity stagnation since the early 1970s by pointing out a potential cause
P2 - to provide another potential explanation explaining why manufacturing is not likely the cause.


Question 1 - Which would weaken the budget deficit explanation? (presumably line 57 is P2)
The explanation is that a lower budget deficit = lower interest rates = higher investment in technology = greater productivity growth

We are asked to weaken this.

A actually strengthens the relationship above. A says deficit = invest less money in R&D. Pretty much what the explanation says. Incorrect.
B does nothing to the explanation given for how the budget deficit impacts investment. It merely states the impact of tech. Incorrect
C is incorrect - it essentially states a separate relationship. Incorrect.
D does nothing to weaken the relationship between a budget deficit and investment in tech. D merely states why investment in tech is so important.
E is correct because it tells us that manufacturing is impacted by interest rates, which are higher during a budget deficit, just as much as services are, so its unlikely the disparity between productivity levels can be due to budget deficits.

Question 2
Effect of FC on manufacturing is discussed in P1
A - correct. "the pressure on manufacturing workers in the US...has been overstated"
B - what? It is stated that some jobs have been lost in the last sentence of P1.
C - Competition has increased productivity- not the other way. Incorrect
D - this is absolute crap. The last sentence describes slowing of growth in demand as a cause of job less, nothing else. Incorrect
E - is incorrect because of the last sentence in P1.

Question 3
I got tripped on this one because I read information relating to the service sector, not the manufacturing sector.
In P1, we are told that "Since 1980, productivity improvements in manufacturing have moved the United States from a position of acute decline in manufacturing to one of world prominence"

This basically says that after 1980 things went great, but before 1980 things were in the red.

A - is correct as it accurately describes the reality.
B - is incorrect because this happened after 1980
C - false. This was economic productivity, not mfg. Incorrect
D - same as C.
E - is incorrect for the same reason as B. Logically, if you chose B then E would need to be correct and vice versa.

Question 4
Mostly discussed in P2.
A - is incorrect as it contradicts the last sentence.
B - is incorrect as it warps information and constrews the facts. This is literally the only fact we are told about high productivity companies - "High productivity growth levels attained by leading edge service companies indicate that service sector managers who wisely implement available technology and choose skillful workers can significantly improve their companies’ productivity."
C - True - we are told in the last sentence that productivity stagnation is caused by government regulation and corporate takeovers. Correct
D - incorrect as we are literally told that such improvements can also be made by choosing skillful workers.
E - incorrect because we are only told that manufacturing firms improved their productivity due to global pressures. We are told in P1 that "service firms are under less global pressure"
_________________
Goal: Q49, V41

+1 Kudos if you like my post pls!
GMAT Club Bot
Re: Whereas United States economic productivity grew at an annual rate of   [#permalink] 10 Aug 2019, 00:46
Display posts from previous: Sort by

Whereas United States economic productivity grew at an annual rate of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne