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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 08 Apr 2015, 00:00
Gnpth wrote:
dpo28 wrote:
Hi
Can you please explain Q:6. I didn't get it, how is it E..?


Hi,

Here is the OE. Its an OG question.

Answering this question requires looking at each possible inference to see if it is supported somewhere in the passage. Support for the inference about the pace of privatization is provided by the suggestion of some economists that giving away free shares would provide a needed acceleration of the privatization process (lines 43–45). If some economists think privatization needs to be accelerated, then it must be going too slowly, at least according to these economists.

A The passage does not allude to any danger in individual ownership of shares.
B Paine is quoted only in reference to employees’ receiving free shares as opposed to buying shares; also, the process of privatization had occurred before employees bought shares in the newly privatized companies.
C No evidence supports the distribution of free shares as part of the United Kingdom’s plan to privatize.
D A phrase in line 4, one approach that works, suggests that perhaps there were other approaches that did not work; however, nowhere does the passage indicate that privatization has not worked in other countries.
E Correct. The economists’ suggestion comes from what they see as the need to speed up a process that is currently taking too long.

The correct answer is E.


Hi Gnpth

After this explanation it seems so easy.
Thnx a lot 4 your reply..! KUDOS :-D :)
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Re: While there is no blueprint for transforming a largely government [#permalink]

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New post 02 May 2015, 20:15
Gnpth wrote:
B Paine is quoted only in reference to employees’ receiving free shares as opposed to buying shares; also, the process of privatization had occurred before employees bought shares in the newly privatized companies.

Also, it seems that a "quote" from Paine is mentioned and that quote can be true for "any situation" and not just for business ownership.

So, basically I don't think we can conclude that what Paine said was specifically in regard to business ownership!

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

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New post 03 Jul 2015, 00:10
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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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.
[Reveal] Spoiler:
D


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.
[Reveal] Spoiler:
A


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
[Reveal] Spoiler:
E


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.
[Reveal] Spoiler:
B


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.
[Reveal] Spoiler:
C


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.
[Reveal] Spoiler:
E


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
[Reveal] Spoiler:
A


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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
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 30 Aug 2017, 11:16
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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Last edited by broall on 30 Aug 2017, 20:28, edited 1 time in total.
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Re: While there is no blueprint for transforming a largely government-cont [#permalink]

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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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Re: While there is no blueprint for transforming a largely government-cont   [#permalink] 07 Nov 2017, 11:40

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