• Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep

OG RC - Privatization q2

This topic has 2 expert replies and 3 member replies
fiza gupta Master | Next Rank: 500 Posts
Joined
31 Jul 2016
Posted:
216 messages
Followed by:
6 members
Upvotes:
31
Target GMAT Score:
750+

OG RC - Privatization q2

Post Thu Oct 13, 2016 3:57 am
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

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

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.

_________________
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!
gocoder Master | Next Rank: 500 Posts Default Avatar
Joined
05 Dec 2015
Posted:
120 messages
Target GMAT Score:
720
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.

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

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

_________________
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!
fiza gupta Master | Next Rank: 500 Posts
Joined
31 Jul 2016
Posted:
216 messages
Followed by:
6 members
Upvotes:
31
Target GMAT Score:
750+
Post Thu Oct 13, 2016 4:05 am
OA:A

_________________
Fiza Gupta

  • +1 Upvote Post
  • Quote
  • Flag
fiza gupta Master | Next Rank: 500 Posts
Joined
31 Jul 2016
Posted:
216 messages
Followed by:
6 members
Upvotes:
31
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

  • +1 Upvote Post
  • Quote
  • Flag

Best Conversation Starters

1 Roland2rule 146 topics
2 lheiannie07 110 topics
3 ardz24 56 topics
4 LUANDATO 52 topics
5 swerve 49 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

153 posts
2 image description GMATGuruNY

The Princeton Review Teacher

129 posts
3 image description Scott@TargetTestPrep

Target Test Prep

129 posts
4 image description Rich.C@EMPOWERgma...

EMPOWERgmat

111 posts
5 image description EconomistGMATTutor

The Economist GMAT Tutor

79 posts
See More Top Beat The GMAT Experts