GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 03 Jul 2020, 09:54

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

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

Find Similar Topics 
Manager
Manager
User avatar
D
Joined: 18 Jun 2018
Posts: 247
While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post Updated on: 23 May 2020, 07:55
1
9
Question 1
00:00
A
B
C
D
E

based on 253 sessions

56% (03:27) correct 44% (03:23) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 255 sessions

82% (01:19) correct 18% (01:33) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 255 sessions

32% (01:35) correct 68% (01:43) wrong

HideShow timer Statistics

Project RC Butler 2020 - Participate and win GMAT Club Tests.
Passage # 105, Date: 23-May-2020
This post is a part of Project RC Butler 2020. Click here for Details


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.



Source: GMAT Hacks

Originally posted by Bismarck on 22 Oct 2018, 03:00.
Last edited by SajjadAhmad on 23 May 2020, 07:55, edited 5 times in total.
NUS School Moderator
avatar
V
Joined: 18 Jul 2018
Posts: 1137
Location: India
Concentration: Operations, General Management
GMAT 1: 590 Q46 V25
GMAT 2: 690 Q49 V34
WE: Engineering (Energy and Utilities)
Reviews Badge 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?
Manager
Manager
User avatar
D
Joined: 18 Jun 2018
Posts: 247
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 team member
User avatar
V
Status: GMAT Club Team Member
Affiliations: GMAT Club
Joined: 02 Nov 2016
Posts: 6208
GPA: 3.62
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 23 May 2020, 07:59
1
+1 Kudos to posts containing answer explanation of all questions
_________________
Manager
Manager
User avatar
B
Joined: 30 Aug 2017
Posts: 67
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 24 May 2020, 08:23
Bismarck wrote:
Project RC Butler 2020 - Participate and win GMAT Club Tests.
Passage # 105, Date: 23-May-2020
This post is a part of Project RC Butler 2020. Click here for Details


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.



Source: GMAT Hacks


The above highlighted answer has a corresponding part in the passage.
Intern
Intern
avatar
B
Joined: 08 Sep 2018
Posts: 1
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 25 May 2020, 23:19
Can Someone summarize this passage?
Intern
Intern
avatar
B
Joined: 14 May 2019
Posts: 9
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 01 Jun 2020, 19:26
Can we get the source of this passage, offlate the passages have been of mediocre quality
Intern
Intern
avatar
B
Joined: 18 Feb 2018
Posts: 3
GMAT 1: 640 Q47 V33
WE: Operations (Internet and New Media)
CAT Tests
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 16 Jun 2020, 05:24
SajjadAhmad could you please share an official explanation for Q3? Not understanding why A is the answer and not D.
GMAT Club team member
User avatar
V
Status: GMAT Club Team Member
Affiliations: GMAT Club
Joined: 02 Nov 2016
Posts: 6208
GPA: 3.62
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 24 Jun 2020, 04:46
shubhampathak1sp wrote:
Can we get the source of this passage, offlate the passages have been of mediocre quality


This passage belongs to GMAT Hacks
_________________
GMAT Club team member
User avatar
V
Status: GMAT Club Team Member
Affiliations: GMAT Club
Joined: 02 Nov 2016
Posts: 6208
GPA: 3.62
Re: While it may seem simple and unobjectionable to non-specialists, one o  [#permalink]

Show Tags

New post 24 Jun 2020, 04:50
harshbirajdar wrote:
SajjadAhmad could you please share an official explanation for Q3? Not understanding why A is the answer and not D.


Official Explanation


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

Difficulty Level: 700

Explanation

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.

Answer: E


Hope it helps
_________________
GMAT Club Bot
Re: While it may seem simple and unobjectionable to non-specialists, one o   [#permalink] 24 Jun 2020, 04:50

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

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





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