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

in Q 4, what if difference between employe in all three company is very large?? and why D is incorrect???

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

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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

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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

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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.
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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.
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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

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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

Hi GMATNinja
KarishmaB

Please can you advise why the answer to Question 6 is Option E and not Option B?

Thanks

(E) It is taking place more slowly than some economists suggest is necessary.

(B) It conforms in its most general outlines to Thomas Paine’s prescription for business ownership.