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

It is currently 21 Nov 2018, 12:57

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
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • All GMAT Club Tests are Free and open on November 22nd in celebration of Thanksgiving Day!

     November 22, 2018

     November 22, 2018

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open November 22nd to celebrate Thanksgiving Day! Access will be available from 0:01 AM to 11:59 PM, Pacific Time (USA)
  • Key Strategies to Master GMAT SC

     November 24, 2018

     November 24, 2018

     07:00 AM PST

     09:00 AM PST

    Attend this webinar to learn how to leverage Meaning and Logic to solve the most challenging Sentence Correction Questions.

While it may seem simple and unobjectionable to non-specialists, one o

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

Hide Tags

Manager
Manager
User avatar
P
Joined: 18 Jun 2018
Posts: 236
Premium Member CAT Tests
While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post Updated on: 22 Oct 2018, 17:31
1
Question 1
00:00
A
B
C
D
E

based on 40 sessions

55% (03:42) correct 45% (03:26) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 46 sessions

85% (01:27) correct 15% (01:37) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 49 sessions

33% (01:50) correct 67% (01:56) wrong

HideShow timer Statistics

While it may seem simple and unobjectionable to non-specialists, one of the many issues that illustrates the divergence of post-Keynesian economics from mainstream economics is the idea of time. Most models of neoclassical economics utilize the notion of "logical time," in which markets (whether they be capital, goods, or labor markets) return to equilibrium after a disturbance is introduced and then overcome. While few economists object to this general model, post-Keynesians try to shift focus away from the "long run"-level analysis and analyze instead events in "historical time," emphasizing the real-world effect of deviations from equilibrium.

However, post-Keynesian economics cannot be understood simply as a reaction to, or adjustment of, the ideas of Keynes. In fact, because many post-Keynesians believe that the movement known as Keynesianism actually represents a severe divergence from the ideas of Keynes, they are in the position of both resuscitating and updating his theories. One example of this phenomenon is the labor market, on which traditional Keynesians follow the classical theory (that is, pre-Keynesian) of unemployment. While traditional and post-Keynesians both support [deficit spending] (known as "pump-priming") as a solution to short- and medium-term inefficiencies in the labor market, traditional Keynesians believe that, so long as wages and prices are perfectly flexible, those inefficiencies will disappear. That is the extent of the story for the traditional Keynesian, but viewed through the lens of "historical time," such inefficiencies are problems worthy of the economist's further study.

1. The passage suggests which of the following about the deficit spending mentioned in the highlighted text?

(A) To a traditional Keynesian, it is a way to eliminate inefficiencies in the labor market.
(B) To a post-Keynesian, it solves all of the problems associated with inefficiencies in the labor market.
(C) To both traditional and post-Keynesians, it is a key aspect of the classical theory of unemployment.
(D) To a traditional Keynesian, it is a way to turn attention away from "long run"-level analysis.
(E) To a post-Keynesian, it is a superior strategy to that of "pump-priming."



2. The author of the passage would be most likely to agree with which of the following statements about the idea of time mentioned in the first sentence of the passage?
(A) It underlies the most trenchant critiques of the classical theory of unemployment.
(B) It applies most directly to theories of the labor market, which has long been misunderstood by economists.
(C) It represents the most serious problem with the positions held by post-Keynesians.
(D) It is the leading cause of the inefficiencies that wreak havoc with economic theories.
(E) It illustrates an important distinction between streams of economic thought.



3. It can be inferred from the passage that which of the following is true about traditional Keynesians?

(A) When studying the labor market, they are mainly concerned with eliminating short- and medium-term inefficiencies.
(B) In criticizing the classical theory of unemployment, they understate the importance of "pump-priming."
(C) They favor the notion of "historical time" to that of "logical time."
(D) They support more of the theories of Keynes than do post-Keynesian economists.
(E) As neoclassical economists, they study the real-life impact of inefficiencies that appear in the capital, goods,and labor markets.


Originally posted by Bismarck on 22 Oct 2018, 03:00.
Last edited by workout on 22 Oct 2018, 17:31, edited 2 times in total.
Senior Manager
Senior Manager
User avatar
P
Joined: 18 Jul 2018
Posts: 380
Location: India
Concentration: Finance, Marketing
WE: Engineering (Energy and Utilities)
Premium Member CAT Tests
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 22 Oct 2018, 03:40
Can you highlight the text for question 1?
_________________

When you want something, the whole universe conspires in helping you achieve it.

MBA Section Director
User avatar
D
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 1034
Concentration: Nonprofit
GPA: 4
WE: Engineering (Computer Software)
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 22 Oct 2018, 17:39

+1 kudos to the posts containing answer explanations of all questions


_________________

New project wSTAT(which Schools To Apply To?)

B-School app with GRE

New - RC Butler - 2 RC's everyday

Manager
Manager
User avatar
P
Joined: 18 Jun 2018
Posts: 236
Premium Member CAT Tests
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 23 Oct 2018, 00:44
1

Original Explanation



Quote:
1. The passage suggests which of the following about the deficit spending mentioned in the highlighted text?

OA: A
The second paragraph notes that deficit spending is something both traditional and post-Keynesians agree on as a solution to certain inefficiencies.
Choice (A) doesn’t represent all of that, but it does state something true, that traditional Keynesians support it as a method.
Choice (B) is too extreme, using the phrase "solves all of the problems."
(C) is inaccurate, as it sounds like de…cit spending is an aspect of this theory, but not necessarily a key aspect.
(D) is wrong, as traditional Keynesians favor "long run" analysis.
(E) is also incorrect, as deficit spending and "pump-priming" are two terms for the same concept.
(A) is correct.

Quote:
2. The author of the passage would be most likely to agree with which of the following statements about the idea of time mentioned in the first sentence of the passage?

OA:E
Most of the passage is about time in some form or other, so rather than trying to predict the parameters of an answer, proceed through the choices.
(A) is too strong, as the author doesn’t tell us that post-Keynesians represent a particularly "trenchant" critique.
(B) is an irrelevant comparison, as the passage doesn't discuss any other applications. We don't know it applies most directly to the labor market.
(C) is another irrelevant comparison ("most?") and the author doesn’t take a stance on whether it is a problem.
Choice (D) conflates theory (the level at which we talk about "historical time," for instance) and actual real-life effects, such as those brought about by
deficit spending. A theoretical concept isn't what wreaks havoc with something in the real world.
(E) finally, is correct. The whole reason that time is discussed is to describe where two schools of thought diverge.

Quote:
3. It can be inferred from the passage that which of the following is true about traditional Keynesians?

OA:A
Traditional Keynesians play a large part in this passage, but their specific positions are not often defined; we may have to look for an answer that represents
something different from what we know about the positions of post-Keynesians.
Choice (A) is exactly that. We know that Keynesians generally support deficit spending to solve short- and medium-term inefficiencies, and that post-
Keynesians differ in that they focus on more than just those inefficiencies. Thus, it can be inferred that traditional Keynesians are not interested in other things
("That is the extent of the story for the traditional Keynesian").
(B) misrepresents the passage, in which Keynesians are said to generally support deficit spending/"pump priming."
(C) gets the distinction backwards; traditional Keynesians use "logical time."
(D) is up for debate, as "many post-Keynesians believe that the movement known as Keynesianism actually represents a severe divergence from the ideas of Keynes."
Most of (E) is correct, but it is unclear in the passage whether traditional Keynesians are neoclassical economists.
GMAT Club Bot
Re: While it may seem simple and unobjectionable to non-specialists, one o &nbs [#permalink] 23 Oct 2018, 00:44
Display posts from previous: Sort by

While it may seem simple and unobjectionable to non-specialists, one o

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


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.