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While there is no blueprint for transforming a largely government-cont

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Re: While there is no blueprint for transforming a largely government  [#permalink]

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New post 07 Jul 2015, 11:55
Hi I think , I saw this question before. but anyways my take 7.41 mins. all correct.

I did not attemp Question 5.


Gnpth wrote:


While there is no blueprint for transforming a largely government-controlled economy into a free one, the experience of the United Kingdom since 1979 clearly shows one approach that works: privatization, in which state-owned industries are sold to private companies. By 1979, the total borrowings and losses of state-owned industries were running at about £3 billion a year. By selling many of these industries, the government has decreased these borrowings and losses, gained over £34 billion from the sales, and now receives tax revenues from the newly privatized companies. Along with a dramatically improved overall economy, the government has been able to repay 12.5 percent of the net national debt over a two year period.

In fact, privatization has not only rescued individual industries and a whole economy headed for disaster, but has also raised the level of performance in every area. At British Airways and British Gas, for example, productivity per employee has risen by 20 percent. At Associated British Ports, labor disruptions common in the 1970s and early 1980s have now virtually disappeared. At British Telecom, there is no longer a waiting list—as there always was before privatization—to have a telephone installed.

Part of this improved productivity has come about because the employees of privatized industries were given the opportunity to buy shares in their own companies. They responded enthusiastically to the offer of shares: at British Aerospace, 89 percent of the eligible work force bought shares; at Associated British Ports, 90 percent; and at British Telecom, 92 percent. When people have a personal stake in something, they think about it, care about it, work to make it prosper. At the National Freight Consortium, the new employee-owners grew so concerned about their company’s profits that during wage negotiations they actually pressed their union to lower its wage demands.

Some economists have suggested that giving away free shares would provide a needed acceleration of the privatization process. Yet they miss Thomas Paine’s point that “what we obtain too cheap we esteem too lightly.” In order for the far ranging benefits of individual ownership to be achieved by owners, companies, and countries, employees and other individuals must make their own decisions to buy, and they must commit some of their own resources to the choice.


1. According to the passage, all of the following were benefits of privatizing state-owned industries in the United Kingdom EXCEPT:
(A) Privatized industries paid taxes to the government.
(B) The government gained revenue from selling state-owned industries.
(C) The government repaid some of its national debt.
(D) Profi ts from industries that were still state owned increased.
(E) Total borrowings and losses of state-owned industries decreased.


2. According to the passage, which of the following resulted in increased productivity in companies that have been privatized?
(A) A large number of employees chose to purchase shares in their companies.
(B) Free shares were widely distributed to individual shareholders.
(C) The government ceased to regulate major industries.
(D) Unions conducted wage negotiations for employees.
(E) Employee-owners agreed to have their wages lowered.


3. It can be inferred from the passage that the author considers labor disruptions to be
(A) an inevitable problem in a weak national economy
(B) a positive sign of employee concern about a company
(C) a predictor of employee reactions to a company’s offer to sell shares to them
(D) a phenomenon found more often in state-owned industries than in private companies
(E) a deterrence to high performance levels in an industry


4. The passage supports which of the following statements about employees buying shares in their own companies?
(A) At three different companies, approximately nine out of ten of the workers were eligible to buy shares in their companies.
(B) Approximately 90 percent of the eligible workers at three different companies chose to buy shares in their companies.
(C) The opportunity to buy shares was discouraged by at least some labor unions.
(D) Companies that demonstrated the highest productivity were the first to allow their employees the opportunity to buy shares.
(E) Eligibility to buy shares was contingent on employees’ agreeing to increased work loads.


5. Which of the following statements is most consistent with the principle described in lines 35–38?
(A) A democratic government that decides it is inappropriate to own a particular industry has in no way abdicated its responsibilities as guardian of the public interest.
(B) The ideal way for a government to protect employee interests is to force companies to maintain their share of a competitive market without government subsidies.
(C) The failure to harness the power of self-interest is an important reason that state-owned industries perform poorly.
(D) Governments that want to implement privatization programs must try to eliminate all resistance to the free-market system.
(E) The individual shareholder will reap only a minute share of the gains from whatever sacrifices he or she makes to achieve these gains.


6. Which of the following can be inferred from the passage about the privatization process in the United Kingdom?
(A) It depends to a potentially dangerous degree on individual ownership of shares.
(B) It conforms in its most general outlines to Thomas Paine’s prescription for business ownership.
(C) It was originally conceived to include some giving away of free shares.
(D) It has been successful, even though privatization has failed in other countries.
(E) It is taking place more slowly than some economists suggest is necessary.


7. The quotation in lines(Highlighted) is most probably used to
(A) counter a position that the author of the passage believes is incorrect
(B) state a solution to a problem described in the previous sentence
(C) show how opponents of the viewpoint of the author of the passage have supported their arguments
(D) point out a paradox contained in a controversial viewpoint
(E) present a historical maxim to challenge the principle introduced in the third paragraph


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Re: While there is no blueprint for transforming a largely government  [#permalink]

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New post 23 Aug 2015, 08:30
I don't think that this is a 700-Level question. Except for the 6th question all others are way to easy for 700...

sannidhya
ank1234
for Question 3:

It is D because the passage states
Quote:
In fact, privatization has not only rescued individual industries and a whole economy headed for disaster, but has also raised the level of performance in every area.
. And what happened during state-ownership?

Workers went on strike. Therefore when there was no privatization performance levels were lower (deterred).
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Re: While there is no blueprint for transforming a largely government  [#permalink]

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New post 24 Aug 2015, 23:09
1
The highlighted text mentions that if we obtain too cheap then we esteem too lightly. This text is opposing the statement that free shares would provide the needed acceleration. Author doesn't support this point. (and that's why mentions the Thomas Paine's point in the highlighted text)

This idea is highlighted in option A. Rest all are wrong.
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While there is no blueprint for transforming a largely government  [#permalink]

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New post Updated on: 30 Aug 2017, 20:28
While there is no blueprint for transforming a largely government-controlled
economy into a free one, the experience of the United Kingdom since 1979
clearly shows one approach that works: privatization,

(5) in which state-owned industries are sold to private companies. By 1979,
the total borrowings and losses of state-owned industries were running at about
£3 billion a year. By selling many of these industries, the government has
decreased these

(10) borrowings and losses, gained over £34 billion from the sales,
and now receives tax revenues from the newly privatized companies.
Along with a dramatically improved overall economy, the government
has been able to repay 12.5 percent of the net

(15) national debt over a two-year period. In fact, privatization has
not only rescued individual industries and a whole economy headed
for disaster, but has also raised the level of performance in every
area. At British Airways and

(20) British Gas, for example, productivity per employee has risen
by 20 percent. At Associated British Ports, labor disruptions common
in the 1970s and early 1980s have now virtually disappeared. At British
Telecom, there is no longer a waiting list—as

(25) there always was before privatization—to have a telephone installed.
Part of this improved productivity has come about because the
employees of privatized industries were given the opportunity to buy shares

(30) in their own companies. They responded enthusiastically to the offer
of shares: at British Aerospace, 89 percent of the eligible work force
bought shares; at Associated British Ports, 90 percent; and at British
Telecom, 92 percent.

(35) When people have a personal stake in something, they think about it,
care about it, work to make it prosper. At the National Freight Consortium,
the new employee-owners grew so concerned about their company's profits
that during wage

(40) negotiations they actually pressed their union to lower its wage demands.
Some economists have suggested that giving away free shares would provide
a needed acceleration of the privatization process. Yet they

(45) miss Thomas Paine's point that "what we obtain too cheap we esteem too lightly.
" In order for the far-ranging benefits of individual ownership to be achieved by owners, companies, and
countries, employees and other individuals must make their

(50) own decisions to buy, and they must commit some of their own resources to the choice.

1. According to the passage, all of the following were benefits of privatizing state-owned industries in the United Kingdom EXCEPT:
(A) Privatized industries paid taxes to the government.
(B) The government gained revenue from selling state-owned industries.
(C) The government repaid some of its national debt.
(D) Profits from industries that were still state-owned increased.
(E) Total borrowings and losses of state-owned industries decreased

2. According to the passage, which of the following resulted in increased productivity in companies that have been
privatized?
(A) A large number of employees chose to purchase shares in their companies.
(B) Free shares were widely distributed to individual shareholders.
(C) The government ceased to regulate major industries.
(D) Unions conducted wage negotiations for employees.
(E) Employee-owners agreed to have their wages lowered.

3. It can be inferred from the passage that the author considers labor disruptions to be
(A) an inevitable problem in a weak national economy
(B) a positive sign of employee concern about a company
(C) a predictor of employee reactions to a company's offer to sell shares to them
(D) a phenomenon found more often in state-owned industries than in private companies
(E) a deterrence to high performance levels in an industry

4. The passage supports which of the following statements about employees buying shares in their own companies?
(A) At three different companies, approximately nine out of ten of the workers were eligible to buy shares in
their companies.
(B) Approximately 90 percent of the eligible workers at three different companies chose to buy shares in
their companies.
(C) The opportunity to buy shares was discouraged by at least some labor unions.
(D) Companies that demonstrated the highest productivity were the first to allow their employees the
opportunity to buy shares.
(E) Eligibility to buy shares was contingent on employees' agreeing to increased work loads

5. Which of the following statements is most consistent with the principle described in lines 35–37?
(A) A democratic government that decides it is inappropriate to own a particular industry has in no way
abdicated its responsibilities as guardian of the public interest.
(B) The ideal way for a government to protect employee interests is to force companies to maintain their
share of a competitive market without government subsidies.
(C) The failure to harness the power of self-interest is an important reason that state-owned industries
perform poorly.
(D) Governments that want to implement privatization programs must try to eliminate all resistance to the
free-market system.
(E) The individual shareholder will reap only a minute share of the gains from whatever sacrifices he or she
makes to achieve these gains

6. Which of the following can be inferred from the passage about the privatization process in the United Kingdom?
(A) It depends to a potentially dangerous degree on individual ownership of shares.
(B) It conforms in its most general outlines to Thomas Paine's prescription for business ownership.
(C) It was originally conceived to include some giving away of free shares.
(D) It has been successful, even though privatization has failed in other countries.
(E) It is taking place more slowly than some economists suggest is necessary

7. The quotation in lines 45–46 is most probably used to
(A) counter a position that the author of the passage believes is incorrect
(B) state a solution to a problem described in the previous sentence
(C) show how opponents of the viewpoint of the author of the passage have supported their arguments
(D) point out a paradox contained in a controversial viewpoint
(E) present a historical maxim to challenge the principle introduced in the third paragraph
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Originally posted by AnubhavK on 30 Aug 2017, 11:16.
Last edited by broall on 30 Aug 2017, 20:28, edited 1 time in total.
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New post 07 Nov 2017, 11:40
I tend to agree with some of the reviewers that question 5 (It can be inferred from the passage that the author considers labor disruptions to be...) is a tricky one and picking E over D is a judgment call. The passage states that labor disruptions were common prior to privatization, so directly implies that (D) a phenomenon found more often in state-owned industries than in private companies. Yes, labor disruptions caused damage to performance, I agree, but this answer does not go deep about root cause - inefficiencies of state companies.
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While there is no blueprint for transforming a largely government-cont  [#permalink]

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New post 23 May 2018, 04:12
Can someone please explain why A is correct in Q7?

In the third paragraph there is some economists' position, not the author's, and Paine's point is counter that some economists' position: If we buy something too cheap,we won't value them accordingly, so giving away free shares (as the economists suggest) will not yield the expected result. Now, where is the author's position here? And A says counter a position that the author of the passage believes is incorrect. What is the position that the author believes that it is incorrect. In other words, according to A there should be a contradiction between author's position and Paine's point. What I am missing here?
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New post 19 Jun 2018, 12:04
mbaiseasy wrote:
84. According to the passage,all of the following were benefits of privatizing state—owned industries in the United Kingdom EXCEPT:

Everything below has been mentioned in the passage EXCEPT for profits from industries.
More than 50% of the passage is even dedicated to increase in productivity, the benefits of shares to employees...
Profit increase is a different thing from Productivity Increase... I see this is more of a trap...
ANSWER: D


85. According to the passage,which of the following resulted in increased productivity in companies that have been privatized?

The key point of the discussion is shares to employees in the companies... This makes B incorrect since it just mentioned individual shareholders (either internal or external to the firm). C,D and E are obviously far fetch from what is mentioned in the passage.

ANSWER: A



86. It can be inferred from the passage that the author considers labor disruptions to be
Although it is not directly mentioned, but by evaluating the line before the sentence that mentions labor disruptions... We can infer that this factor is considered a part of evaluating increase in productivity (thus high performance).
ANSWER: E



87. The passage supports which of the following statements about employees buying shares in their own companies?

From the passage, it says: They responded enthusiastically to the offer of shares:at British Aerospace,89 percent of the eligible work force bought shares;at Associated British Ports,90 percent;and at British Telecom,92 percent.
ANSWER: B




88. Which of the following statements is most consistent with the principle described in lines 36-38?
I made a choice between C and E because the other choices are easy to cancel out. What's wrong with E? Well in here it says whatever you do you will reap only a minute share... This is obviously close to the idea of you reap what you sow BUT ONLY A MINUTE ruins the actual point... ANSWER: C

89. Which of the following can be inferred from the passage about the privatization process in the United Kingdom?


90.The quotation in lines 46-47 is most probably used to
[color=#ed1c24
]A is obviously the answer...[/color]


Still stuck with how to reject D in the last question?
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New post 15 Jul 2018, 12:26
took me around 15 mins

1 wrong

the 6th one.... can anyone pls explain?
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New post 13 Sep 2018, 13:13
We know for sure that state owned industries were converted to private.
But the author nowhere in the passage mentions that there were no privately owned industries, and whether the these labour disruptions happened more in private or state owned. Hence we can not be sure.


ank1234 wrote:
hi...
for Q3 why can't the answer be D.

At Associated British Ports, labor disruptions common in the 1970s and early 1980s have now virtually disappeared.

from above sentence , it can be inferred disruptions were common in 70s & early 80s.

the experience of the United Kingdom since 1979 clearly shows one approach that works: privatization, in which state-owned industries are sold to private companies.

from above sentence, it can be inferred that privatization happened after 79.

so cant we infer option D from both ?

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New post 24 Sep 2018, 08:14
1
P1- how to government-controlled economy into a free one; example is given -privatization in uk.
P2- privatization has done what? examples.
P3- part of success come from factor X. examples and care.
P4- why factor x for free is not a good idea. and solution/improvements.
main idea - privatization - impacts - factorx - how to improve X.
Tone - moderate, informative,

1. According to the passage, all of the following were benefits of privatizing state-owned industries in the United Kingdom EXCEPT:
anchor - benefits of privatizing

(A) Privatized industries paid taxes to the government. - yes, p1
(B) The government gained revenue from selling state-owned industries. - yes, p1
(C) The government repaid some of its national debt. - yes, p1
(D) Profits from industries that were still state owned increased. - no, should be the answer.
(E) Total borrowings and losses of state-owned industries decreased. - yes, p1

------------------------------------------

2. According to the passage, which of the following resulted in increased productivity in companies that have been privatized?
Pre-think - companies that have been privatized, talk about increased productivity. talked about it in p2 and p3. cause of this productivity increased.

(A) A large number of employees chose to purchase shares in their companies. - yes
(B) Free shares were widely distributed to individual shareholders. - no
(C) The government ceased to regulate major industries. - no
(D) Unions conducted wage negotiations for employees. - no
(E) Employee-owners agreed to have their wages lowered. - no

------------------------------------------

3. It can be inferred from the passage that the author considers labor disruptions to be
lines - but has also raised the level of performance in every area. At British Airways and British Gas, for example, productivity per employee has risen by 20 percent. At Associated British Ports, labor disruptions common in the 1970s and early 1980s have now virtually disappeared. At British Telecom, there is no longer a waiting list—as there always was before privatization—to have a telephone installed.

pre-think - cause of increased productivity, labor disruptions disappeared.

(E) a deterrence to high performance levels in an industry - yes

-------------------------------------------
4.The passage supports which of the following statements about employees buying shares in their own companies?
P3 + p4 defines about it.

(A) At three different companies, approximately nine out of ten of the workers were eligible to buy shares in their companies. - no
(B) Approximately 90 percent of the eligible workers at three different companies chose to buy shares in their companies. - may be
(C) The opportunity to buy shares was discouraged by at least some labor unions. - no
(D) Companies that demonstrated the highest productivity were the first to allow their employees the opportunity to buy shares. - no
(E) Eligibility to buy shares was contingent on employees’ agreeing to increased work loads. - no

B is best of the lot.
--------------------------------------------

5. Which of the following statements is most consistent with the principle described in lines 30-32 [When people have a personal stake in something, they think about it, care about it, work to make it prosper.]?
pre-think - As many shares were given to employee, company become the part of there wealth. now people will care for company.

(C) The failure to harness the power of self-interest is an important reason that state-owned industries perform poorly. - correct.
---------------------------------------------

6. Which of the following can be inferred from the passage about the privatization process in the United Kingdom?
P1 + p2

(A) It depends to a potentially dangerous degree on individual ownership of shares. -- no
(B) It conforms in its most general outlines to Thomas Paine’s prescription for business ownership. - that is in p4
(C) It was originally conceived to include some giving away of free shares. - p3
(D) It has been successful, even though privatization has failed in other countries. - no
(E) It is taking place more slowly than some economists suggest is necessary. - yes

----------------------------------------------
7. The quotation in lines 39 [“what we obtain too cheap we esteem too lightly.”] is most probably used to

Some economists have suggested that giving away free shares would provide a needed acceleration of the privatization process. Yet they miss Thomas Paine’s point that “what we obtain too cheap we esteem too lightly.” In order for the far-ranging benefits of individual ownership to be achieved by owners, companies, and countries, employees and other individuals must make their own decisions to buy, and they must commit some of their own resources to the choice.

(A) counter a position that the author of the passage believes is incorrect - yes
(B) state a solution to a problem described in the previous sentence - no
(C) show how opponents of the viewpoint of the author of the passage have supported their arguments - no
(D) point out a paradox contained in a controversial viewpoint - no
(E) present a historical maxim to challenge the principle introduced in the third paragraph - No
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New post 13 Oct 2018, 22:35
All correct , but took 12 minutes , which in my opinion is a lot.
Anybody with a view on time ??
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New post 13 Oct 2018, 22:38
1
Well given that passage is long 3-4 min to read and solving 7 question (1 min each avg.) i say 11-13 min is pretty cool.
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