GNP

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aj5105: Legendary Member; Posts: 1169; Joined: Sun Jul 06, 2008 2:34 amFollowed by: 1 member; Thanked: 25 times

by aj5105 » Wed Jun 17, 2009 10:27 am

The number of patents granted to inventors by the United States Patent Office dropped from 56,000 in 1971 to 45,000 in 1978. Spending on research and development, which peaked at 3 percent of the gross national product (GNP) in 1964, was only 2.2 percent of the GNP in 1978. During this period, when the United States percentage was steadily decreasing, West Germany and Japan increased the percentage of their GNP’s spent on research and development to 3.2 percent and 1.6 percent, respectively.

Which of the following conclusions is best supported by the information above?

(A) There is direct relationship between the size of a nation’s GNP and the number of inventions it produces.

(B) Japan and West Germany spent more money on research and development is directly related to the number of inventions patented in that nation.

(C) The amount of money a nation spends on research and development is directly relocated to the number of inventions patented in that nation.

(D) Between 1964 and 1978 the United States consistently spent a larger percentage of its GNP on research and development than did Japan.

(E) Both West Germany and Japan will soon surpass the United States in the number of patents granted to investors.

Source: Beat The GMAT — Critical Reasoning | Wed Jun 17, 2009 10:27 am

commit.gmat: Junior | Next Rank: 30 Posts; Posts: 22; Joined: Tue May 19, 2009 8:01 pm; Thanked: 2 times; GMAT Score:740

by commit.gmat » Wed Jun 17, 2009 10:53 am

IMO D.

(A) There is direct relationship between the size of a nation’s GNP and the number of inventions it produces.
no information to arrive at this conclusion. We only know % of GNP. No actual figures are given.

(B) Japan and West Germany spent more money on research and development is directly related to the number of inventions patented in that nation.
Again, no information on the number of patents by Germany and Japan.

(C) The amount of money a nation spends on research and development is directly relocated to the number of inventions patented in that nation.
We don't know anything about amounts. we only know percentages.

(D) Between 1964 and 1978 the United States consistently spent a larger percentage of its GNP on research and development than did Japan.
YES. In 1964 USA spent about 3% and in 1978 that % is declined to 2.2% gradually.

In Japan's case, the % is consistently increased and in 1978 it was only 1.6% which is less than that of USA in 1978. As Japan's percentage was increasing steadily from 1964 to 1978, in 1964 it must have been much less that 1.6%.

(E) Both West Germany and Japan will soon surpass the United States in the number of patents granted to investors.
No information on the number of patents of Germany and Japan.

joymukhi: Junior | Next Rank: 30 Posts; Posts: 28; Joined: Sat May 02, 2009 3:27 pm

by joymukhi » Wed Jun 17, 2009 10:53 am

IMO C. Please post OA.

vinaynp: Master | Next Rank: 500 Posts; Posts: 154; Joined: Thu Mar 19, 2009 12:55 pmFollowed by: 1 member; Thanked: 5 times

by vinaynp » Wed Jun 17, 2009 10:57 am

IMO D) Everything else is not related.

shark: Junior | Next Rank: 30 Posts; Posts: 18; Joined: Fri May 29, 2009 9:16 am

by shark » Wed Jun 17, 2009 3:15 pm

IMO D.

We can easily eliminate options (A), (B), and (E) for the reasons:
- there is no explicit statement connecting num of inventions and size of GNP
- there is no explicit information about Japan and Germany being granted more patents
- there is no information about G and J surpassing US

We are left with (C) and (D).

Option (C) is a strong statement. It is proposing a direct relationship between money and number of patents. This MAY be true but that is not what we are trying to do here. Can we make this conclusion from the facts specified in the paragraph. I think NO.

Option (D) is true that US spend a larger % GNP than did Japan between 65 and 78.

mehravikas: Legendary Member; Posts: 1161; Joined: Mon May 12, 2008 2:52 amFollowed by: 1 member; Location: Sydney; Thanked: 23 times

by mehravikas » Wed Jun 17, 2009 5:54 pm

I ruled out 'D' because it says United States consistently had a larger percentage than Japan.

We don't have that information anywhere in the passage.

IMO - C

commit.gmat: Junior | Next Rank: 30 Posts; Posts: 22; Joined: Tue May 19, 2009 8:01 pm; Thanked: 2 times; GMAT Score:740

by commit.gmat » Wed Jun 17, 2009 7:03 pm

mehravikas wrote:I ruled out 'D' because it says United States consistently had a larger percentage than Japan.

We don't have that information anywhere in the passage.

IMO - C

Lets say in 1964, GNP was $100. 3% of that is 3 dollars.

So, in 1964: 3 dollars --> 56,000 patents

in 1978, GDP is $1000, 2.2% of that is 22 dollars.

1978: 22 dollars --> 45,000 patents (more amount than 1964 but less patents)

This contradicts C directly. C can be ruled out.

gmat_dest: Master | Next Rank: 500 Posts; Posts: 186; Joined: Fri Jan 16, 2009 4:57 am; Thanked: 7 times; GMAT Score:720

by gmat_dest » Wed Jun 17, 2009 7:52 pm

D looks a little awkard at first , but is the best of the lot.

Steadily decreasing.... increased to... phrases confirm D.

satish.nagdev: Master | Next Rank: 500 Posts; Posts: 130; Joined: Sat Dec 29, 2007 5:35 am; Location: SGP; Thanked: 5 times

by satish.nagdev » Wed Jun 17, 2009 10:56 pm

mehravikas wrote: Lets say in 1964, GNP was $100. 3% of that is 3 dollars.

So, in 1964: 3 dollars --> 56,000 patents

This contradicts C directly. C can be ruled out.

there is no mention of 56000 patents in 1964 its 1971

IMO C, proportion of spending with number of patents is the key

whats OA please

Wounded by GMAT but not dead

mehravikas: Legendary Member; Posts: 1161; Joined: Mon May 12, 2008 2:52 amFollowed by: 1 member; Location: Sydney; Thanked: 23 times

by mehravikas » Thu Jun 18, 2009 1:31 am

In addition to what @satish.nagdev pointed out. How can we claim that US spent a larger percentage than Japan did?

We don't have any patents for Japan.

satish.nagdev wrote:
mehravikas wrote: Lets say in 1964, GNP was $100. 3% of that is 3 dollars.

So, in 1964: 3 dollars --> 56,000 patents

This contradicts C directly. C can be ruled out.
there is no mention of 56000 patents in 1964 its 1971

IMO C, proportion of spending with number of patents is the key

whats OA please

viju9162: Master | Next Rank: 500 Posts; Posts: 434; Joined: Mon Jun 11, 2007 9:48 pm; Location: Bangalore; Thanked: 6 times; GMAT Score:600

by viju9162 » Thu Jun 18, 2009 2:55 am

OA is D. I did this problem today in OG

. However, my answer was wrong

"Native of" is used for a individual while "Native to" is used for a large group

james33: Master | Next Rank: 500 Posts; Posts: 200; Joined: Sat Aug 22, 2015 10:27 am

by james33 » Sun May 15, 2016 8:03 pm

I will Go with option D in this case.

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