Attitude Of the Author

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Attitude Of the Author

by kaulnikhil » Sat Jun 27, 2009 9:34 am
Can someone help me with this .. provide explications if possible:

Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to think of price-fixing (the determination of prices by the seller) as both “normal” and having a valuable economic function. In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not.
Moreover, those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non-socialist countries other than the United states. These economies employ intentional price-fixing, usually in an overt fashion. Formal price-fixing by cartel and informal price-fixing by agreements covering the members of an industry are commonplace. Were there something peculiarly efficient about the free market and inefficient about price-fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have.
Socialist industry also works within a framework of controlled prices. In the early 1970’s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system. Economists in the United States have hailed the change as a return to the free market. But Soviet firms are no more subject to prices established by a free market over which they exercise little influence than are capitalist firms; rather, Soviet firms have been given the power to fix prices.

The author’s attitude toward “Most economists in the United States”(line 1) can best be described as
(A) spiteful and envious
(B) scornful and denunciatory
(C) Critical and condescending
(D) ambivalent but deferential
(E) uncertain but interested

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by sasen » Sat Jun 27, 2009 10:53 am
C seems like a good option.
needless to sai the author is unhappi about these economists.
A :he is not envious
B : too harsh
C: appropriate
D&E: author is sure of his stand so these options are ruled out

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by kaulnikhil » Sat Jun 27, 2009 11:47 am
c is right .. one more thing when is the tone called critical .. and does condescend stands for superiority because he propagates price fixing over free market

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by sasen » Sat Jun 27, 2009 10:51 pm
ies,u can so so

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by ernesto_che » Wed Sep 25, 2013 3:05 am
Can any one place explain in detail the following? 3. The author's attitude toward "Most economists in the United States"(line 1) can best be described as
(A) spiteful and envious
(B) scornful and denunciatory
(C) critical and condescending
(D) ambivalent but deferential
(E) uncertain but interest

as per my understanding
1 parragraph - many economists claim freemarket
2 paragraph - author says price fixing happens in nonsocialist countries and no harm there and widespread and common there
3 paragraph - author says price fixing is also prsent in socialist countries and provides Soviet as an example

So, in above question, author is defering from freemarket but not condescending that is not advocate view that price fixing is better than free market. Passage states there is no harm in advocating price fixing. I am confused between can and d .can u pls elaborate?

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by ernesto_che » Wed Sep 25, 2013 3:14 am
Can u also explain me following? 8. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?
(A) The directors of large firms will continue to anticipate the demand for products.
(B) The directors of large firms are less interested in achieving a predictable level of profit than in achieving a large profit.
(C) The directors of large firms will strive to reduce the costs of their products.
(D) Many directors of large firms believe that the government should establish the prices that will be charged for products.
(E) Many directors of large firms believe that the price charged for products is likely to increase annually.

Though by Poe I concluded a but how from passage

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by vinay1983 » Wed Sep 25, 2013 6:13 am
ernesto_che wrote:Can any one place explain in detail the following? 3. The author's attitude toward "Most economists in the United States"(line 1) can best be described as
(A) spiteful and envious
(B) scornful and denunciatory
(C) critical and condescending
(D) ambivalent but deferential
(E) uncertain but interest

as per my understanding
1 parragraph - many economists claim freemarket
2 paragraph - author says price fixing happens in nonsocialist countries and no harm there and widespread and common there
3 paragraph - author says price fixing is also prsent in socialist countries and provides Soviet as an example

So, in above question, author is defering from freemarket but not condescending that is not advocate view that price fixing is better than free market. Passage states there is no harm in advocating price fixing. I am confused between can and d .can u pls elaborate?
I think option D is a good option.Critical is also an extreme word so is condescending.
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

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by vinay1983 » Wed Sep 25, 2013 6:16 am
ernesto_che wrote:Can u also explain me following? 8. With which of the following statements regarding the behavior of large firms in industrialized societies would the author be most likely to agree?
(A) The directors of large firms will continue to anticipate the demand for products.
(B) The directors of large firms are less interested in achieving a predictable level of profit than in achieving a large profit.
(C) The directors of large firms will strive to reduce the costs of their products.
(D) Many directors of large firms believe that the government should establish the prices that will be charged for products.
(E) Many directors of large firms believe that the price charged for products is likely to increase annually.

Though by Poe I concluded a but how from passage

See this

"That each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price-cutting, because price-cutting would be prejudicial to the common interest in a stable demand for products"


So option A is correct. I feel if you can relate to the paragraph and get to the answer in more than 1 way, then that method can be deemed to be good.Trust yourself.

Hope I am of some help!
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

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by theCodeToGMAT » Fri Sep 27, 2013 10:49 am
In my opinion,

Q3 --> [spoiler]{C}[/spoiler]

Q8 --> [spoiler]{A}[/spoiler]
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