Denationalization!

This topic has expert replies
User avatar
Master | Next Rank: 500 Posts
Posts: 407
Joined: Tue Jan 25, 2011 9:19 am
Thanked: 25 times
Followed by:7 members

Denationalization!

by Ozlemg » Wed Aug 03, 2011 4:18 am
In the aftermath of a worldwide stock-market crash, Country T claimed that the severity of
the stock-market crash it experienced resulted from the accelerated process of
denationalization many of its industries underwent shortly before the crash.
Which of the following, if it could be carried out, would be most useful in an evaluation of
Country T's assessment of the causes of the severity of its stock-market crash?
A. calculating the average loss experienced by individual traders in Country T during the
crash
B. using economic theory to predict the most likely date of the next crash in Country T
C. comparing the total number of shares sold during the worst days of the crash in Country T
to the total number of shares sold in Country T just prior to the crash
D. comparing the severity of the crash in Country T to the severity of the crash in countries
otherwise economically similar to Country T that have not experienced recent
denationalization
E. comparing the long-term effects of the crash on the purchasing power of the currency of
Country T to the immediate, more severe short-term effects of the crash on the purchasing
power of the currency of Country T

What do you think about [spoiler]D?[/spoiler]
Does it useful in evalutation the current situation? It may not happen for Counrty T.
Why C is wrong when assesing the severity? Does not it help us to understand whether the severity of crash is exaggerated or not?
The more you suffer before the test, the less you will do so in the test! :)

Legendary Member
Posts: 2789
Joined: Tue Jul 26, 2011 12:19 am
Location: Chennai, India
Thanked: 206 times
Followed by:43 members
GMAT Score:640

by GmatKiss » Wed Aug 03, 2011 4:27 am
IMO:D

Legendary Member
Posts: 2789
Joined: Tue Jul 26, 2011 12:19 am
Location: Chennai, India
Thanked: 206 times
Followed by:43 members
GMAT Score:640

by GmatKiss » Wed Aug 03, 2011 4:30 am
In the aftermath of a worldwide stock-market crash, Country T claimed that the severity of
the stock-market crash it experienced resulted from the accelerated process of
denationalization many of its industries underwent shortly before the crash
.
Which of the following, if it could be carried out, would be most useful in an evaluation of
Country T's assessment of the causes of the severity of its stock-market crash?


D. comparing the severity of the crash in Country T to the severity of the crash in countries
otherwise economically similar to Country T that have not experienced recent
denationalization

Only D, is useful in evaluation, as it compares with the reason : denationalization/nationalization of companies in another similar economic body.

Hope it helps!! :)

User avatar
Master | Next Rank: 500 Posts
Posts: 253
Joined: Fri Dec 26, 2008 8:39 pm
Thanked: 8 times
Followed by:1 members

by BlindVision » Wed Aug 03, 2011 12:47 pm
Ozlemg wrote:In the aftermath of a worldwide stock-market crash, Country T claimed that the severity of
the stock-market crash it experienced resulted from the accelerated process of
denationalization many of its industries underwent shortly before the crash.
Which of the following, if it could be carried out, would be most useful in an evaluation of
Country T's assessment of the causes of the severity of its stock-market crash?
A. calculating the average loss experienced by individual traders in Country T during the
crash
B. using economic theory to predict the most likely date of the next crash in Country T
C. comparing the total number of shares sold during the worst days of the crash in Country T
to the total number of shares sold in Country T just prior to the crash
D. comparing the severity of the crash in Country T to the severity of the crash in countries
otherwise economically similar to Country T that have not experienced recent
denationalization
E. comparing the long-term effects of the crash on the purchasing power of the currency of
Country T to the immediate, more severe short-term effects of the crash on the purchasing
power of the currency of Country T

What do you think about [spoiler]D?[/spoiler]
Does it useful in evalutation the current situation? It may not happen for Counrty T.
Why C is wrong when assesing the severity? Does not it help us to understand whether the severity of crash is exaggerated or not?
C
Life is a Test

Senior | Next Rank: 100 Posts
Posts: 67
Joined: Thu Jun 26, 2008 8:34 am
Location: india
Thanked: 1 times

by dinaroneo » Wed Aug 03, 2011 4:19 pm
Clearly D seems to be the answer.
Which of the following, if it could be carried out, would be most useful in an evaluation of Country T's assessment of the causes of the severity of its stock-market crash
option C, will only measure the severity, however C will not be able to assess the cause of severity!!
whereas D will compare the severity of T with other country w/o denationalisation and will be able o assess the causes of severity!
Hope that helps..