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RC - Structure / function

Expert replies
by karthikpandian19 » Mon Jun 25, 2012 6:30 pm
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Other than the government, the restaurant industry is the largest employer in the United States, generating an estimated $550 billion in sales in 2008. The industry serves 133 million guests a day, and every dollar spent dining out generates $2.34 in business for other industries. In a nation where big corporations outsource jobs to foreign countries, the restaurant industry remains a bastion of small businesses and local operators, rooted in communities and neighborhoods. Seven out of ten restaurants are single-unit operators, as opposed to fast-food franchises.

Food and beverage costs are one of the most significant line items for a restaurant; nearly 33 cents of every dollar in revenue is spent on ingredients. Profit margins are not big in the restaurant world; 9 out of 10 restaurants don’t survive the first two years of business. Of those that do, the average restaurateur earns about a nickel on every dollar in sales. An increase in food costs can have a dramatic impact on the bottom line. While the industry is used to fluctuations, recent increases are creating significant challenges. This year, the price of flour has risen by 87 percent, eggs by 73 percent, cooking oils by 49 percent, cheeses by 27 percent, rice by 25 percent and milk by 20 percent. These price-hikes come on the heels of double-digit cost increases last year.

While some factors affecting food prices are beyond our control, there are U.S. government policies in place that contribute to food price inflation. Food-to-fuel mandates and subsidies that encourage the use of grains for fuel instead of food should be revisited. A recent study concludes that these policies pit Americans’ need for food against our need for fuel. While both are important priorities for the nation, the restaurant industry supports the development of efficient, renewable fuels, including the promotion of the use of recyclable restaurant oils, which could replace the current food-to-fuel subsidies and thus safeguard against price distortions in the food supply. These price distortions have and will continue to impact both restaurant customers and small businesses.

What is the function of the last paragraph of the passage?


(A) To examine common challenges to the claim that the restaurant industry is the largest employer in the United States.

(B) To provide a counterexample to the main thesis of the passage.

(C) To cite statistical evidence that the increase in food prices will undermine the American economy.

(D) To name both a cause of and a possible solution to the problems addressed in the second paragraph.

(E) To dismiss the common conception that America's need for fuel is more important than its need for food
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

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Source: — Reading Comprehension |

by Birottam Dutta » Tue Jun 26, 2012 9:07 am
D is the correct answer choice.

The second para talks of increase in prices of food, and the small margins that restaurateurs make.

The third para talks of the cause of this as well as a possible solution for this.

So, D is perfect.
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by karthikpandian19 » Tue Jun 26, 2012 2:02 pm
OA is D

D is correct because the last paragraph names a cause of the problems addressed in the second paragraph ("there are U.S. government policies in place that contribute to food price inflation") and a possible solution ("the restaurant industry supports the development of efficient, renewable fuels,... which could...safeguard against price distortions in the food supply").
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---
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Re: RC - Structure / function

by BTG Expert Team » Mon Nov 02, 2026 11:34 am
What we see: a Reading Comprehension "function" question. We need to say what job the last paragraph does for the passage.

Step 1. Find the problem the passage sets up.
What we see: paragraph 2 says restaurants keep only about a nickel per dollar, and food prices jumped this year (flour up 87 percent, eggs up 73 percent).
What it means: the problem is rising food costs squeezing small profits.
What we do and why: the last paragraph must be read as an answer to this problem, because that is what it talks about next.

Step 2. Read what the last paragraph adds.
What we see: "there are U.S. government policies in place that contribute to food price inflation," namely food-to-fuel mandates and subsidies. Then: the industry supports renewable fuels, such as recycled restaurant oils, "which could replace the current food-to-fuel subsidies."
What it means: the first half names one cause of the high food prices. The second half offers a fix.
What we do and why: look for the choice that says "a cause and a solution for the paragraph 2 problem."

Step 3. Test the choices.
(A) The paragraph never questions the "largest employer" claim.
(B) Nothing here goes against the passage's main point. It supports it.
(C) The last paragraph has no numbers, and it talks about restaurants, not the whole economy.
(E) The paragraph says food and fuel are "both ... important priorities." It does not rank them.
The choice that names a cause and a possible solution to the food cost problem matches both halves of the paragraph.

The trap: (E). The paragraph says the policies "pit Americans' need for food against our need for fuel," which sounds like a claim that food matters more. But the very next sentence calls both important. The author wants a different fuel source, not a ranking.
Faster way: spot the signal words. "Contribute to" marks a cause, and "could replace" marks a solution. Two signals, one choice that has both.
Takeaway: For a function question, say in your own words what the paragraph does before you read the choices, then match the job, not the topic.

Answer: D
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