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GMAT Question of the Day:Critical Reasoning

In 1990 all of the people who applied for a job at Evco also applied for a job at Radeco, and Evco
and Radeco each offered jobs to half of these appli- cants. Therefore, every one of these applicants must have been offered a job in 1990. The argument above is based on which of the
following assumptions about these job applicants?

(A) All of the applicants were very well qualified for a job at either Evco or Radeco.
(B) All of the applicants accepted a job at either Evco or Radeco.
(C) None of the applicants was offered a job by both Evco and Radeco.
(D) None of the applicants had applied for jobs at places other than Evco and Radeco.
(E) None of the applicants had perviously worked for either Evco or Radeco

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GMAT Question of the Day: Reading Comprehension

Most studies of recent Southeast Asian immigrants to the United States have focused on their adjustment to life in their adopted country and on the effects of leaving their homelands. James Tollefson’s Alien Winds examines the resettlement process from a different perspective by investigating the educational programs offered in immigrant processing centers. Based on interviews, transcripts from classes, essays by immigrants, personal visits to a teacher-training unit, and official government documents, Tollefson relies on an impressive amount and variety of documentation in making his arguments about processing centers’ educational programs.

Tollefson’s main contention is that the emphasis placed on immediate employment and on teaching the values, attitudes, and behaviors that the training personnel think will help the immigrants adjust more easily to life in the United States is often counterproductive and demoralizing. Because of concerns that the immigrants be self-supporting as soon as possible, they are trained almost exclusively for low-level jobs that do not require English proficiency. In this respect, Tollefson claims, the processing centers suit the needs of employers more than they suit the long-term needs of the immigrant community. Tollefson also detects a fundamental flaw in the attempts by program educators to instill in the immigrants the traditionally Western principles of self-sufficiency and individual success. These efforts often have the effect of undermining the immigrants’ sense of community and, in doing so, sometimes isolate them from the moral support and even from business opportunities afforded by the immigrant community. The programs also encourage the immigrants to shed their cultural traditions and ethnic identity and adopt the lifestyles, beliefs, and characteristics of their adopted country if they wish to enter fully into the national life.

Tollefson notes that the ideological nature of these educational programs has roots in the turn-of-the-century educational programs designed to assimilate European immigrants into United States society. Tollefson provides a concise history of the assimilationist movement in immigrant education, in which European immigrants were encouraged to leave behind the ways of the Old World and to adopt instead the principles and practices of the New World.

Tollefson ably shows that the issues demanding real attention in the educational programs for Southeast Asian immigrants are not merely employment rates and government funding, but also the assumptions underpinning the educational values in the programs. He recommends many improvements for the programs, including giving the immigrants a stronger voice in determining their needs and how to meet them, redesigning the curricula, and emphasizing long-term language education and job training over immediate employment and the avoiding of public assistance. Unfortunately, though, Tollefson does not offer enough concrete solutions as to how these reforms could be carried out, despite his own descriptions of the complicated bureaucratic nature of the programs.

1) Which one of the following statements best expresses the main idea of the passage?
(A) Tollefson’s focus on the economic and cultural factors involved in adjusting to a new country offers a significant departure from most studies of Southeast Asian immigration.
(B) In his analysis of educational programs for Southeast Asian immigrants, Tollefson fails to acknowledge many of the positive effects the programs have had on immigrants’ lives.
(C) Tollefson convincingly blames the philosophy underlying immigrant educational programs for some of the adjustment problems afflicting Southeast Asian immigrants.
(D) Tollefson’s most significant contribution is his analysis of how Southeast Asian immigrants overcome the obstacles they encounter in immigrant educational programs.
(E) Tollefson traces a gradual yet significant change in the attitudes held by processing center educators toward Southeast Asian immigrants.

2) With which one of the following statements concerning the educational programs of the immigration centers would Tollefson most probably agree?
(A) Although the programs offer adequate job training, they offer inadequate English training.
(B) Some of the programs’ attempts to improve the earning power of the immigrants cut them off from potential sources of income.
(C) Inclusion of the history of immigration in the United States in the programs’ curricula facilitates adjustment for the immigrants.
(D) Immigrants would benefit if instructors in the programs were better prepared to teach the curricula developed in the teacher-training courses.
(E) The programs’ curricula should be redesigned to include greater emphasis on the shared values, beliefs, and practices in the United States.

3) Which one of the following best describes the opinion of the author of the passage with respect to Tollefson’s work?
(A) thorough but misguided
(B) innovative but incomplete
(C) novel but contradictory
(D) illuminating but unappreciated
(E) well documented but unoriginal

4) The passage suggests that which one of the following is an assumption underlying the educational approach in immigrant processing centers?
(A) There is a set of values and behaviors that if adopted by immigrants, facilitate adjustment to United States society.
(B) When recent immigrants are self-supporting rather than supported by public assistance, they tend to gain English proficiency more quickly.
(C) Immediate employment tends to undermine the immigrants sense of community with each other.
(D) Long-term success for immigrants is best achieved by encouraging the immigrants to maintain a strong sense of community.
(E) The principles of self-sufficiency and individual success are central to Southeast Asian culture and ethnicity.

5) Which one of the following best describes the function of the first paragraph of the passage?
(A) It provides the scholarly context for Tollefson’s study and a description of his methodology.
(B) It compares Tollefson’s study to other works and presents the main argument of his study.
(C) It compares the types of documents Tollefson uses to those used in other studies.
(D) It presents the accepted theory on Tollefson’s topic and the method by which Tollefson challenges it.
(E) It argues for the analytical and technical superiority of Tollefson’s study over other works on the topic.

6) The author of the passage refers to Tollefson’s descriptions of the bureaucratic nature of the immigrant educational programs in the fourth paragraph most probably in order to
(A) criticize Tollefson’s decision to combine a description of the bureaucracies with suggestions for improvement
(B) emphasize the author’s disappointment in Tollefson’s overly general recommendations for improvements to the programs
(C) point out the irony of Tollefson concluding his study with suggestions for drastic changes in the programs
(D) support a contention that Tollefson’s recommendations for improvements do not focus on the real sources of the programs’ problems
(E) suggest a parallel between the complexity of the bureaucracies and the complexity of Tollefson’s arguments

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GMAT Question of the Day : Sentence Correction

It is not likely that the competitive imbalance that now exists between Japan with all major industrial nations will be redressed during the foreseeable future.

(A) with all major industrial nations will be redressed during
(B) with all other major industrial nations will be redressed within
(C) with all other major industrial nations will be redressed during
(D) and all major industrial nations will be redressed during
(E) and all other major industrial nations will be redressed within

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GMAT Question of the Day :Data Sufficiency

If n is an integer between 2 and 100 and if n is also the square of an integer, what is the value of n?

(1) n is the cube of an integer.
(2) n is even.

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GMAT Question of the Day :Data Sufficiency

A jewelry dealer initially offered a bracelet for sale at an asking price that would give a profit to the dealer of 40 percent of the original cost. What was the original cost of the bracelet?

(1) After reducing this asking price by 10 percent, the jewelry dealer sold the bracelet at a profit of $403.
(2) The jewelry dealer sold the bracelet for $1,953.

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GMAT Question of the Day : Data Sufficiency

Committee member W wants to schedule a one-hour meeting on Thursday for himself and three other committee members, X,Y, and Z, Is there a one-hour period on Thursday that is open for all four members?
(1) On Thursday W and X have an open period from 9:00 a.m. to 12:00 noon.
(2) On Thursday Y has an open period from 10:00 a.m. to 1:00 p.m. and Z has an open period from 8:00 a.m. to 11:00 a.m.

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

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Ask a Critical Reasoning Question by V Pat

A prominent investor who holds a large stake in the Burton Tool company has recently claimed that the company is mismanaged, citing as evidence the company’s failure to slow production in response to a recent rise in its inventory of finished products. It is doubtful whether an investor’s sniping at management can ever be anything other than counterproductive, but in this case it is clearly not justified. It is true that an increased inventory of finished products often indicates that production is outstripping demand, but in Burton’s case it indicates no such thing. Rather, the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.

In the argument given, the two boldfaced portions (”company is mismanaged” and “but in this case it is clearly not justified”) play which of the following roles?

A. The first states the position that the argument as a whole opposes; the second provides evidence to undermine the support for the position being opposed.

B. The first states the position that the argument as a whole opposes; the second is evidence that has been used to support the position being opposed.

C. The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.

D. The first is evidence that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that evidence.

E. The first is evidence that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.

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GMAT Question of the Day :Data Sufficiency

If x and y are nonzero integers, is x/y an integer?

(1) x is the product of 2 and some other integer.
(2) There is only one pair of positive integers whose product equals y.

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GMAT Question of the Day : Sentence Correction

William Hornby acquired bison herds for breeding stock hoping that this move would eventually lead to increasing in their numbers, and a fortification of their environment.

A) increasing in their numbers,
B) an increase in their numbers,
C) their increase in numbers,
D) an increasing in numbers,
E) an increasing in the numbers of them,

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GMAT Question of the Day : Sentence Correction

Mahatma Gandhi’s is credited as having championed a nonviolent approach to reform as apractical and moral means to struggle against social injustice.

A. as having
B. with having
C. to have
D. as the one who
E. for being the one who

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GMAT Question of The Day: Data Sufficiency

Is the perimeter of Square S greater than the perimeter of equilateral triangle T?
(1) The ratio of the length of a side of S to the length of a side of T is 4:5.
(2) The sum of the lengths of a side of S and a side of T is 18.

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.

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GMAT Question of the Day: Reading Comprehension

J. G. A. Pocock’s numerous investigations have all revolved around the fruitful assumption that a work of political thought can only be understood in light of the linguistic constraints to which its author was subject, for these prescribed both the choice of subject matter and the author’s conceptualization of this subject matter. Only the occasional epic theorist, like Machiavelli or Hobbes, succeeded in breaking out of these bonds by redefining old terms and inventing new ones. The task of the modern commentator is to identify the “language” or “vocabulary” with and within which the author operated. While historians of literature have always been aware that writers work within particular traditions, the application of this notion to the history of political ideas forms a sharp contrast to the assumptions of the 1950s, when it was naively thought that the close reading of a text by an analytic philosopher was sufficient to establish its meaning, even if the philosopher had no knowledge of the period of the text’s composition.

The language Pocock has most closely investigated is that of “civic humanism.” For much of his career he has argued that eighteenth-century English political thought should be interpreted as a conflict between rival versions of the “virtue” central to civic humanism. On the one hand, he argues, this virtue is described by representatives of the Tory opposition using a vocabulary of public spirit and self-sufficiency. For these writers the societal ideal is the small, independent landowner in the countryside. On the other hand, Whig writers describe such virtue using a vocabulary of commerce and economic progress; for them the ideal is the merchant.

In making such linguistic discriminations Pocock has disassociated himself from historians like Namier, who deride all eighteenth-century English political language as “cant.” But while Pocock’s ideas have proved fertile when applied to England, they are more controversial when applied to the late-eighteenth-century United States. Pocock’s assertion that Jefferson’s attacks on the commercial policies of the Federalists simply echo the language of the Tory opposition in England is at odds with the fact that Jefferson rejected the elitist implications of that group’s notion of virtue and asserted the right of all to participate in commercial society. Indeed, after promptings by Quentin Skinner, Pocock has admitted that a counterlanguage—one of rights and liberties—was probably as important in the political discourse of the late-eighteenth-century United States as the language of civic humanism. Fortunately, it is not necessary to rank the relative importance of all the different vocabularies in which eighteenth-century political argument was conducted. It is sufficient to recognize that any interesting text is probably a mixture of several of these vocabularies, and to applaud the historian who, though guilty of some exaggeration, has done the most to make us aware of their importance.

1) The main idea of the passage is that
(A) civic humanism, in any of its manifestations, cannot entirely explain eighteenth-century political discourse
(B) eighteenth-century political texts are less likely to reflect a single vocabulary than to combine several vocabularies
(C) Pocock’s linguistic approach, though not applicable to all eighteenth-century political texts, provides a useful model for historians of political theory
(D) Pocock has more successfully accounted for the nature of political thought in eighteenth-century England than in the eighteenth-century United States
(E) Pocock’s notion of the importance of language in political texts is a logical extension of the insights of historians of literature

2) According to the passage, Pocock most clearly associates the use of a vocabulary of economic progress with
(A) Jefferson
(B) Federalists
(C) English Whigs
(D) English Tories rural
(E) English landowners

3) The author’s attitude toward Pocock is best revealed by which of the following pairs of words?
(A) “fruitful” (line 2) and “cant” (line 39)
(B) “sharp” (line 16) and “elitist” (line 46)
(C) “naively” (line 17) and “controversial” (line 41)
(D) “fertile” (line 40) and “applaud” (line 60)
(E) “simply” (line 44) and “importance” (line 55)

4) The passage suggests that one of the “assumptions of the 1950s” (line 17) regarding the meaning of a political text was that this meaning
(A) could be established using an approach similar to that used by literary historians
(B) could be definitively established without reference to the text’s historical background
(C) could be closely read in several different ways depending on one’s philosophic approach
(D) was constrained by certain linguistic preconceptions held by the text’s author
(E) could be expressed most clearly by an analytic philosopher who had studied its historical context

5) The author of the passage would most likely agree that which one of the following is a weakness found in Pocock’s work?
(A) the use of the term “language” to describe the expressive features of several diverse kinds of discourse
(B) the overemphatic denigration of the role of the analytic philosopher in establishing the meaning of a political, or indeed any, text
(C) the emphasis on the overriding importance of civic humanism in eighteenth-century English political thought
(D) the insistence on a single linguistic dichotomy to account for political thought in eighteenth-century England and the United States
(E) the assignment of certain vocabularies to particular parties in eighteenth-century England without taking note of how these vocabularies overlapped

6) Which one of the following best describes the organization of the passage?
(A) A description of a thesis is offered, specific cases are considered, and an evaluation is given.
(B) A thesis is brought forward, the thesis is qualified, and evidence that calls the qualification into question is stated.
(C) A hypothesis is described, examples that suggest it is incorrect are summarized, and supporting examples are offered.
(D) A series of evaluations are given, concrete reasons are put forward, and a future direction for research is suggested.
(E) Comparisons and contrasts are made, some categories of evaluation are suggested, and a framework for applying these categories is implied.

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GMAT Question of the Day : Critical Reasoning

The more frequently employees that take a break for guided relaxation exercises during working hours each week, the fewer sick days they take.  Even workers who take a guided relaxation break once a week during working hours take less sick leave than those who do not perform relaxation.  Therefore, if companies started guided relaxation programs, the absentee rate in those companies would decrease significantly.Which of the following, if true, most seriously weakens the argument above?

A)  Employees who do guided relaxation exercises during working hours occasionally fall asleep for short periods of time after the exercises.
B)  Employees who are frequently absent are the least likely to cooperate with or to join a corporate relaxation program.
C)  Employees who do guided relaxation exercises only once a week in their company’s fitness program usually also do relaxation exercises at home.
D)  Employees who do guided relaxation exercises in their company’s relaxation program use their working time no more productively than those who do not do relaxation exercises.
E)  Employees do guided relaxation exercises during working hours take slightly longer lunch breaks than employees who do not do relaxation exercises.

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GMAT Question of the Day : Sentence Correction

Robinson is a botanist whose dream is to reestablish an authentic pre-human piece of Hawaii, a place now awash with introduced species of plants and animals.

A)who has the dream to reestablish an authentic pre-human piece of Hawaii,
B) whose dream it is to reestablish an authentic pre-human piece of Hawaii,
C) who it is his dream to reestablish an authentic pre-human piece of Hawaii,
D) that is dreaming to reestablish an authentic pre-human piece of Hawaii,
E) whose dream is to reestablish an authentic pre-human piece of Hawaii,

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GMAT Question of the Day: Data Sufficiency

A total of 9 women and 12 men reside in the 21 apartments that are in a certain apartment building, one person to each apartment. If a poll taker is to select one of the apartments at random, what is the probability that the resident of the apartment selected will be a woman who is a student?
(1) Of the women, 4 are students.
(2) Of the women, 5 are not students.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

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GMAT Question of the Day : Sentence Correction

Despite no proof that the consumption of any particular foods reverse hardening of the arteries, studies indicate that refraining from eating certain foods could help reverse blockage of coronary arteries, the blood vessels that feed the heart.
(A) Despite no proof that the consumption of any particular foods reverse hardening of the arteries, studies indicate that refraining from eating certain foods could
(B) Despite no foods having been proved to reverse hardening of the arteries when consumed, studies indicate that refraining from eating certain foods can
(C) Although the consumption of no particular foods have been proved to reverse hardening of the arteries, studies indicate that to refrain from eating certain foods could
(D) Although not proved that the consumption of any foods reverse hardening of the arteries, studies indicate that refraining from eating certain foods can
(E) Although it has not been proved that the consumption of any particular food will reverse hardening of the arteries, studies indicate that refraining from eating certain foods can

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GMAT Question of the Day : Reading Comprehension

According to a recent theory, Archean-age gold-quartz vein systems were formed over two billion years ago from magnetic fluids that originated from molten granite-like bodies deep beneath the surface of the Earth. This theory is contrary to the widely held view that the systems were deposited from metamorphic fluids, that is, from fluids that formed during the dehydration of wet sedimentary rocks.
The recently developed theory has considerable practical importance. Most of the gold deposits discovered during the original gold rushes were exposed at the Earth’s surface and were found because they had shed trails of alluvial gold that were easily traced by simple prospecting methods. Although these same methods still lead to an occasional discovery, most deposits not yet discovered have gone undetected because they are buried and have no surface expression.

The challenge in exploration is therefore to unravel the subsurface geology of an area and pinpoint the position of buried minerals. Methods widely used today include analysis of aerial images that yield a broad geological overview; geophysical techniques that provide data on the magnetic, electrical, and mineralogical properties of the rocks being investigated; and sensitive chemical tests that are able to detect the subtle chemical halos that often envelop mineralization. However, none of these high-technology methods are of any value if the sites to which they are applied have never mineralized, and to maximize the chances of discovery the explorer must therefore pay particular attention to selecting the ground formations most likely to be mineralized. Such ground selection relies to varying degrees on conceptual models, which take into account theoretical studies of relevant factors.

These models are constructed primarily from empirical observations of known mineral deposits and from theories of ore-forming processes. The explorer uses the models to identify those geological features that are critical to the formation of the mineralization being modeled, and then tries to select areas for exploration that exhibit as many of the critical features as possible.

1) The author is primarily concerned with
(A) advocating a return to an older methodology
(B) explaining the importance of a recent theory
(C) enumerating differences between two widely used methods
(D) describing events leading to a discovery
(E) challenging the assumptions on which a theory is based

2) According to the passage, the widely held view of Archean-age gold-quartz vein systems is that such systems
(A) were formed from metamorphic fluids
(B) originated in molten granite-like bodies
(C) were formed from alluvial deposits
(D) generally have surface expression
(E) are not discoverable through chemical tests

3) The passage implies that which of the following steps would be the first performed by explorers who wish to maximize their chances of discovering gold?
(A) Surveying several sites known to have been formed more than two billion years ago
(B) Limiting exploration to sites known to have been formed from metamorphic fluid
(C) Using an appropriate conceptual model to select a site for further exploration
(D) Using geophysical methods to analyze rocks over a broad area
(E) Limiting exploration to sites where alluvial gold has previously been found

4) Which of the following statements about discoveries of gold deposits is supported by information in the passage?
(A) The number of gold discoveries made annually has increased between the time of the original gold rushes and the present.
(B) New discoveries of gold deposits are likely to be the result of exploration techniques designed to locate buried mineralization.
(C) It is unlikely that newly discovered gold deposits will ever yield as much as did those deposits discovered during the original gold rushes.
(D) Modern explorers are divided on the question of the utility of simple prospecting methods as a source of new discoveries of gold deposits.
(E) Models based on the theory that gold originated from magnetic fluids have already led to new discoveries of gold deposits.

5) It can be inferred from the passage that which of the following is easiest to detect?
(A) A gold-quartz vein system originating in magnetic fluids
(B) A gold-quartz vein system originating in metamorphic fluids
(C) A gold deposit that is mixed with granite
(D) A gold deposit that has shed alluvial gold
(E) A gold deposit that exhibits chemical halos

6) The theory mentioned in line 1 relates to the conceptual models discussed in the passage in which of the following ways?
(A) It may furnish a valid account of ore-forming processes, and, hence, can support conceptual models that have great practical significance.
(B) It suggests that certain geological formations, long believed to be mineralized, are in fact mineralized, thus confirming current conceptual models.
(C) It suggests that there may not be enough similarity across Archean-age gold-quartz vein systems to warrant the formulation of conceptual models.
(D) It corrects existing theories about the chemical halos of gold deposits, and thus provides a basis for correcting current conceptual models.
(E) It suggests that simple prospecting methods still have a higher success rate in the discovery of gold deposits than do more modern methods.

7) According to the passage, methods of exploring for gold that are widely used today are based on which of the following facts?
(A) Most of the Earth’s remaining gold deposits are still molten.
(B) Most of the Earth’s remaining gold deposits are exposed at the surface.
(C) Most of the Earth’s remaining gold deposits are buried and have no surface expression.
(D) Only one type of gold deposit warrants exploration, since the other types of gold deposits are found in regions difficult to reach.
(E) Only one type of gold deposit warrants exploration, since the other types of gold deposits are unlikely to yield concentrated quantities of gold.

8) It can be inferred from the passage that the efficiency of model-based gold exploration depends on which of the following?
I) The closeness of the match between the geological features identified by the model as critical and the actual geological features of a given area
II) The degree to which the model chosen relies on empirical observation of known mineral deposits rather than on theories of ore-forming processes
III) The degree to which the model chosen is based on an accurate description of the events leading to mineralization
(A) I only
(B) II only
(C) I and II only
(D) I and III only
(E) I, II and III

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GMAT Question of the Day: Data Sufficiency

If m and n are consecutive positive integers, is m greater than n?
(1) m – 1 and n +1 are consecutive positive integers.
(2) m is an even integer.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

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GMAT Question of the Day : Reading Comprehension

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 shows one approach that works: privatization, in which 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 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.
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 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 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 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 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 privatization process. Yet they miss Thomas Paine’s point that “what we obtain too cheap we esteem too lightly.” In 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.

1) According to the passage, all of the following were benefits of privatizing state-owned industries in the United Kingdom EXCEPT:
(A) Privatized industries paid taxes to the government.
(B) The government gained revenue from selling state-owned industries.
(C) The government repaid some of its national debt.
(D) Profits from industries that were still state-owned increased.
(E) Total borrowings and losses of state-owned industries decreased.

2) According to the passage, which of the following resulted in increased productivity in companies that have been privatized?
(A) A large number of employees chose to purchase shares in their companies.
(B) Free shares were widely distributed to individual shareholders.
(C) The government ceased to regulate major industries.
(D) Unions conducted wage negotiations for employees.
(E) Employee-owners agreed to have their wages lowered.

3) It can be inferred from the passage that the author considers labor disruptions to be
(A) an inevitable problem in a weak national economy
(B) a positive sign of employee concern about a company
(C) a predictor of employee reactions to a company’s offer to sell shares to them
(D) a phenomenon found more often in state-owned industries than in private companies
(E) a deterrence to high performance levels in an industry

4) The passage supports which of the following statements about employees buying shares in their own companies?
(A) At three different companies, approximately nine out of ten of the workers were eligible to buy shares in their companies.
(B) Approximately 90% of the eligible workers at three different companies chose o buy shares in their companies.
(C) The opportunity to buy shares was discouraged by at least some labor unions.
(D) Companies that demonstrated the highest productivity were the first to allow their employees the opportunity to buy shares.
(E) Eligibility to buy shares was contingent on employees’ agreeing to increased work loads.

5) Which of the following statements is most consistent with the principle described in lines 30-32?
(A) A democratic government that decides it is inappropriate to own a particular industry has in no way abdicated its responsibilities as guardian of the public interest.
(B) The ideal way for a government to protect employee interests is to force companies to maintain their share of a competitive market without government subsidies.
(C) The failure to harness the power of self-interest is an important reason that state-owned industries perform poorly.
(D) Governments that want to implement privatization programs must try to eliminate all resistance to the free-market system.
(E) The individual shareholder will reap only a minute share of the gains from whatever sacrifices he or she makes to achieve these gains.

6) 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.

7) The quotation in line 39 is most probably 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

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GMAT Question of the Day : Reading Comprehension

Seeking a competitive advantage, some professional service firms (for example, firms providing advertising, accounting, or health care services) have considered offering unconditional guarantees of satisfaction. Such guarantees specify what clients can expect and what the firm will do if it fails to fulfill these expectations. Particularly with first-time clients, an unconditional guarantee can be an effective marketing tool if the client is very cautious, the firm’s fees are high, the negative consequences of bad service are grave, or business is difficult to obtain through referrals and word-of-mouth.

However, an unconditional guarantee can sometimes hinder marketing efforts. With its implication that failure is possible, the guarantee may, paradoxically, cause clients to doubt the service firm’s ability to deliver the promised level of service. It may conflict with a firm’s desire to appear sophisticated, or may even suggest that a firm is begging for business. In legal and health care services, it may mislead clients by suggesting that lawsuits or medical procedures will have guaranteed outcomes. Indeed, professional service firms with outstanding reputations and performance to match have little to gain from offering unconditional guarantees. And any firm that implements an unconditional guarantee without undertaking a commensurate commitment to quality of service is merely employing a potentially costly marketing gimmick.

1) The primary function of the passage as a whole is to
(A) account for the popularity of a practice
(B) evaluate the utility of a practice
(C) demonstrate how to institute a practice
(D) weigh the ethics of using a strategy
(E) explain the reasons for pursuing a strategy

2) All of the following are mentioned in the passage as circumstances in which professional service firms can benefit from offering an unconditional guarantee EXCEPT:
(A) The firm is having difficulty retaining its clients of long standing.
(B) The firm is having difficulty getting business through client recommendations.
(C) The firm charges substantial fees for its services.
(D) The adverse effects of poor performance by the firm are significant for the client.
(E) The client is reluctant to incur risk.

3) Which of the following is cited in the passage as a goal of some professional service firms in offering unconditional guarantees of satisfaction?
(A) A limit on the firm’s liability
(B) Successful competition against other firms
(C) Ability to justify fee increases
(D) Attainment of an outstanding reputation in a field
(E) Improvement in the quality of the firm’s service

4) The passage’s description of the issue raised by unconditional guarantees for health care or legal services most clearly implies that which of the following is true?
(A) The legal and medical professions have standards of practice that would be violated by attempts to fulfill such unconditional guarantees.
(B) The result of a lawsuit of medical procedure cannot necessarily be determined in advance by the professionals handling a client’s case.
(C) The dignity of the legal and medical professions is undermined by any attempts at marketing of professional services, including unconditional guarantees.
(D) Clients whose lawsuits or medical procedures have unsatisfactory outcomes cannot be adequately compensated by financial settlements alone.
(E) Predicting the monetary cost of legal or health care services is more difficult than predicting the monetary cost of other types of professional services.

5) Which of the following hypothetical situations best exemplifies the potential problem noted in the second sentence of the second paragraph (lines 14-17)?
(A) A physician’s unconditional guarantee of satisfaction encourages patients to sue for malpractice if they are unhappy with the treatment they receive.
(B) A lawyer’s unconditional guarantee of satisfaction makes clients suspect that the lawyer needs to find new clients quickly to increase the firm’s income.
(C) A business consultant’s unconditional guarantee of satisfaction is undermined when the consultant fails to provide all of the services that are promised.
(D) An architect’s unconditional guarantee of satisfaction makes clients wonder how often the architect’s buildings fail to please clients.
(E) An accountant’s unconditional guarantee of satisfaction leads clients to believe that tax returns prepared by the accountant are certain to be accurate.

6) The passage most clearly implies which of the following about the professional service firms mentioned in line 22?
(A) They are unlikely to have offered unconditional guarantees of satisfaction in the past.
(B) They are usually profitable enough to be able to compensate clients according to the terms of an unconditional guarantee.
(C) They usually practice in fields in which the outcomes are predictable.
(D) Their fees are usually more affordable than those charged by other professional service firms.
(E) Their clients are usually already satisfied with the quality of service that is delivered.

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GMAT Question of the Day: Data Sufficiency

Carlotta can drive from her home to her office by one of two possible routes. If she must also return by one of these routes, what is the distance of the shorter route?
(1) When she drives from her home to her office by the shorter route and returns by the longer route, she drives a total of 42 kilometers.
(2) when she drives both ways from her home to her office and back, by the longer route, she drives a total of 46 kilometers.

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

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