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While new census data reveal that unemployment numbers are even direr

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While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post Updated on: 23 Dec 2017, 10:15
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1
Question 1
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A
B
C
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E

Question Stats:

80% (02:32) correct 20% (02:30) wrong based on 211

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Question 2
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A
B
C
D
E

Question Stats:

90% (00:44) correct 10% (00:45) wrong based on 184

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Question 3
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Question Stats:

31% (01:30) correct 69% (01:10) wrong based on 185

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While new census data reveal that unemployment numbers are even direr than was previously suspected, it is not clear that the forecast for American entrepreneurship is equally alarming. An article in a major national newspaper suggests that the contraction in hiring at existing companies might result in the founding of more new companies. College graduates, unable to find traditional jobs, instead opt to start their own businesses. Whereas a recession may seem an unpropitious time for such a historically risky endeavor, with no better options, would-be entrepreneurs have little to lose. Unfortunately, this situation does not necessarily impact the economy positively. Though the average number of new businesses started per year has been higher during the recession than it was before, the proportion of high-value businesses founded each year has declined, while the proportion of low-value businesses has increased. So even if a business manages to stay solvent, it may not bring significant returns. Also, because of an inevitable dearth of outside "angel" investors and venture capitalists willing to bankroll startups, many new entrepreneurs are putting their own money on the line. In certain ways, the choice between accepting a traditional job and starting a business is not unlike the choice between renting and buying property. The latter requires a significant initial outlay and carries heavier risks, but the rewards can be equally substantial.


1. The primary purpose of the passage is to

(A) propose changes in the way the public generally interprets census data
(B) maintain that college students should form their own companies, especially during economic recessions
(C) present a nuanced view of a contemporary economic issue
(D) evaluate the viability of low- versus high-value businesses under various environmental conditions
(E) draw an analogy between career decisions and real-estate decisions, specifically the choice to rent or buy property



2. According to the passage, the reason that many college graduates are choosing to launch their own companies in the present economic climate is that

(A) they are hampered by the difficulty of finding outside investors
(B) they cannot easily find positions typically open to workers of their experience
(C) the prevalence of low-value companies has increased
(D) they are forced to decide between renting and buying property
(E) forecasts of the unemployment rate are likely to become less dire in coming years




3. It can be inferred from the passage that over the course of the recent recession, the number of American high-value businesses founded per year

(A) has fallen sharply
(B) has fallen moderately
(C) has risen sharply
(D) has risen moderately
(E) may have either fallen or risen


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Originally posted by hazelnut on 29 Nov 2017, 06:20.
Last edited by Skywalker18 on 23 Dec 2017, 10:15, edited 1 time in total.
added Q2 and Q3
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 29 Nov 2017, 06:30
hazelnut wrote:
While new census data reveal that unemployment numbers are even direr than was previously suspected, it is not clear that the forecast for American entrepreneurship is equally alarming. An article in a major national newspaper suggests that the contraction in hiring at existing companies might result in the founding of more new companies. College graduates, unable to find traditional jobs, instead opt to start their own businesses. Whereas a recession may seem an unpropitious time for such a historically risky endeavor, with no better options, would-be entrepreneurs have little to lose. Unfortunately, this situation does not necessarily impact the economy positively. Though the average number of new businesses started per year has been higher during the recession than it was before, the proportion of high-value businesses founded each year has declined, while the proportion of low-value businesses has increased. So even if a business manages to stay solvent, it may not bring significant returns. Also, because of an inevitable dearth of outside "angel" investors and venture capitalists willing to bankroll startups, many new entrepreneurs are putting their own money on the line. In certain ways, the choice between accepting a traditional job and starting a business is not unlike the choice between renting and buying property. The latter requires a significant initial outlay and carries heavier risks, but the rewards can be equally substantial.

1. The primary purpose of the passage is to

(A) propose changes in the way the public generally interprets census data
(B) maintain that college students should form their own companies, especially during economic recessions
(C) present a nuanced view of a contemporary economic issue
(D) evaluate the viability of low- versus high-value businesses under various environmental conditions
(E) draw an analogy between career decisions and real-estate decisions, specifically the choice to rent or buy property



OFFICIAL EXPLANATION



This question focuses on the main idea of the passage. The reading constantly flips back and forth, taking one side at first, then another on the forecast for American entrepreneurship. The author is careful to present his or her arguments fairly and with some reservations (e.g., it is not clear that..., suggests that..., may seem..., does not necessarily..., it may not bring..., can be...). Ultimately, the view is balanced.

(A) Census data provide the source of the author's first observation, but the author is not specifically proposing a new interpretation of those data, let alone for such an interpretation to be generally adopted by the public. Yes, the census data reveal that unemployment numbers are even direr than was previously suspected, and yes, the author states that the forecast for American entrepreneurship may not be equally alarming. However, it is a stretch to say that the author is proposing that the data are themselves to be interpreted differently. (By the way, the word data is technically plural; the GMAT doesn't seem to test this fact, but you should not be thrown by a passage that reads new census data reveal rather than reveals, as would be typical in speech.)

(B) The author never argues that any group of college students should (or should not) form their own companies. If anything, the author offers both sides of the issue, leaving it up to individuals to decide.

(C) CORRECT. The contemporary economic issue is the forecast for American entrepreneurship, which is the focus of the passage. The author presents a nuanced view of this issue.

(D) The author offers one fact about the varying rates at which businesses of two types (low-value and high-value) are founded. However, the author never evaluates the viability (or likelihood of success) of these types.

(E) The analogy drawn in the last two sentences is not the main point of the passage; it is a final observation, one that sheds light on the issue, but the making of this particular analogy is not the primary purpose for which the passage was written.

The correct answer is C.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 29 Nov 2017, 06:31
3.25 minutes-correct.
Do you have more questions on this RC?
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 23 Dec 2017, 10:17
TaN1213 wrote:
3.25 minutes-correct.
Do you have more questions on this RC?


Hi TaN1213,
Q2 and Q3 have been added.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 09 Jan 2018, 04:27
Hi,

Need official explanation for Q3

Regards
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 09 Jan 2018, 07:32
Why the answer to the last question is E? Can anyone explain?
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 10 Jan 2018, 10:09
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NaeemHasan wrote:
Why the answer to the last question is E? Can anyone explain?


Question is asking numbers, which we can not exactly tell increased or decreased from the passage. passage only states the proportion decreased from previous year. May be number of both high valued and low valued increased but the proportion wise it is low.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 16 Jan 2018, 19:19
3
OE for Q3:

This question asks what “can be inferred” about the number of American high-value businesses; that is, what else must be true based upon the evidence given in the passage? The answer choices all have to do with how this number has changed (or may have changed) during the course of the recent recession. In particular, when you encounter mathematical language, take extra care to make the argument airtight mathematically. Search for the key phrase “high-value businesses”: the passage states that “the proportion of high-value businesses founded each year has declined.” Watch out! A proportion is not the same as a number. The proportion has fallen, but the overall number of new business starts has been higher over recent years. If the overall number is up, but the proportion is down, it is unknown whether the absolute number of high-value businesses is up or down; this is exactly what choice (E) indicates.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 01 Sep 2018, 06:30
Easy passage! Took 5:42 for the whole passage including 3 min to read and got all correct.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 03 Sep 2018, 20:16
NaeemHasan wrote:
Why the answer to the last question is E? Can anyone explain?

the passage tells us that while the average number of new businesses per year has increased the proportion of high value business has decreased..
first of all the question asks about the number of businesses and secondly (proportion=number/total)because total is increasing and proportion is decreasing this means that the number may increase or decrease ,it may even be same i say.
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 04 Sep 2018, 20:03
dabaobao wrote:
Easy passage! Took 5:42 for the whole passage including 3 min to read and got all correct.



Hi,

Can you explain me the second question?

Thanks,
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Re: While new census data reveal that unemployment numbers are even direr  [#permalink]

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New post 05 Sep 2018, 11:01
Golusoni wrote:
dabaobao wrote:
Easy passage! Took 5:42 for the whole passage including 3 min to read and got all correct.



Hi,

Can you explain me the second question?

Thanks,
Soni


Golusoni

2. According to the passage, the reason that many college graduates are choosing to launch their own companies in the present economic climate is that

(A) they are hampered by the difficulty of finding outside investors

They are in no way hampered by difficulty of finding outside investors. The passage only states that foreign investors aren't willing to invest in startups. That doesn't mean that many college graduates would choose to launch their own companies. Completely nonsensical

(B) they cannot easily find positions typically open to workers of their experience

HOLD. The passage does state that many youngsters start something on their own because of unemployment

(C) the prevalence of low-value companies has increased

So what??? How could that be a reason?? That can at best be a deterrent for college graduates to not start a new company because the prevalence of low-value companies has increased

(D) they are forced to decide between renting and buying property

This can't be a reason. This is just an analogy.

(E) forecasts of the unemployment rate are likely to become less dire in coming years

Nowhere mentioned

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Re: While new census data reveal that unemployment numbers are even direr &nbs [#permalink] 05 Sep 2018, 11:01
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