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OG RC - Privatization q2

This topic has 2 expert replies and 3 member replies
fiza gupta Master | Next Rank: 500 Posts
Joined
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Target GMAT Score:
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OG RC - Privatization q2

Post Thu Oct 13, 2016 3:57 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    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
    Line shows one approach that works: privatization, in which
    (5) 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
    (10) 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.
    (15) 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
    (20) British Ports, labor disruptions common in the 1970’s and
    early 1980’s 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
    (25) 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
    (30) 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
    (35) 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 private-
    zation process. Yet they miss Thomas Paine’s point that
    “what we obtain too cheap we esteem too lightly.” In
    (40) 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.

    The quotation in lines 46-47 is most probaly 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

    _________________
    Fiza Gupta

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    fiza gupta Master | Next Rank: 500 Posts
    Joined
    31 Jul 2016
    Posted:
    216 messages
    Followed by:
    6 members
    Thanked:
    31 times
    Target GMAT Score:
    750+
    Post Thu Oct 13, 2016 4:03 am
    Quote:
    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
    Line shows one approach that works: privatization, in which
    (5) 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
    (10) 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.
    (15) 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
    (20) British Ports, labor disruptions common in the 1970’s and
    early 1980’s 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
    (25) 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
    (30) 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
    (35) 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 private-
    zation process. Yet they miss Thomas Paine’s point that
    “what we obtain too cheap we esteem too lightly.
    ” In
    (40) 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.
    above question "46-47" line represent "Yet they miss Thomas Paine’s point that
    “what we obtain too cheap we esteem too lightly.”

    _________________
    Fiza Gupta

    fiza gupta Master | Next Rank: 500 Posts
    Joined
    31 Jul 2016
    Posted:
    216 messages
    Followed by:
    6 members
    Thanked:
    31 times
    Target GMAT Score:
    750+
    Post Thu Oct 13, 2016 4:05 am
    OA:A

    _________________
    Fiza Gupta

    Post Fri Nov 18, 2016 7:57 am
    fiza gupta 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
    Line shows one approach that works: privatization, in which
    (5) 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
    (10) 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.
    (15) 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
    (20) British Ports, labor disruptions common in the 1970’s and
    early 1980’s 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
    (25) 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
    (30) 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
    (35) 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 private-
    zation process. Yet they miss Thomas Paine’s point that
    “what we obtain too cheap we esteem too lightly.” In
    (40) 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.

    The quotation in lines 46-47 is most probaly 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
    The line, Yet they miss Thomas Paine’s point, shows that author disagrees with the economists' position that companies should give away free shares. The answer is A

    _________________
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    Top Member

    gocoder Master | Next Rank: 500 Posts Default Avatar
    Joined
    05 Dec 2015
    Posted:
    120 messages
    Target GMAT Score:
    720
    Most Active Member
    Post Tue Jul 25, 2017 6:44 am
    DavidG@VeritasPrep wrote:
    fiza gupta 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
    Line shows one approach that works: privatization, in which
    (5) 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
    (10) 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.
    (15) 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
    (20) British Ports, labor disruptions common in the 1970’s and
    early 1980’s 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
    (25) 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
    (30) 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
    (35) 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 private-
    zation process. Yet they miss Thomas Paine’s point that
    “what we obtain too cheap we esteem too lightly.” In
    (40) 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.

    The quotation in lines 46-47 is most probaly 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
    The line, Yet they miss Thomas Paine’s point, shows that author disagrees with the economists' position that companies should give away free shares. The answer is A
    Hi David,
    From the same passage, could you help me on the following question for why Is B incorrect ?

    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.

    Post Tue Jul 25, 2017 7:02 am
    Quote:
    Hi David,
    From the same passage, could you help me on the following question for why Is B incorrect ?

    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.
    The quote we get from Thomas Paine is a fairly narrow one about how people don't value what they receive for free. That's consistent with the notion that shares shouldn't simply be given to employees, but it's not enough to conclude that the privatization process in general - state-owned businesses being sold to private companies/revenue used to pay down public debt/equity incentives to inspire worker loyalty - is consistent with Thomas Paine's beliefs.

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