bySayantani Barman Experta en el extranjero
Reading Passage Question
Transportation developments have greatly influenced the pace and course of business growth in America. The early turnpike and canal systems each broadened the market area by lowering costs and speeding distribution. But the influence of railroads dwarfed all of these previous developments. Railroads pioneered many aspects of business administration and enhanced some land values enormously. They also had an important impact on the growth of certain cities. Atlanta, for example, was transformed from a spot in the wilderness to a thriving metropolis as a result of the construction of the Western and Atlantic Railroad.
Railroads also provided a large outlet for savings.Their capital requirements were so great that they provided the first big opening for the investment banker – who by the end of the 19th century was in control of many railroads. Railroads, too, because of the stress of competition, both in construction and operation, were the first big firms to experiment with new forms of business organisation such as pools and consolidation. It followed – because railroads were so vital to the nation and because their performance was tied in with the business cycle – that the highways which came later were the first form of business to have their operations regulated to a large degree by the government.
Finally, railroads were responsible for a great many jobs, at one time more than 2,000,000 workers. Railroads were easily the nation’s largest employers during the post-Civil War, pre-World War I period. In addition they were responsible, indirectly, for tens of thousands of other jobs in the coal, iron, steel, and engineering industries – in such big enterprises, for example, as the Pullman Palace Car Company and the Westinghouse Air Brake Company. \ The Pullman Company, in 1909, was the eighth largest firm in the nation in terms of assets, and practically all of its output went to American railroads. Railroads, actually, were to the period 1850-1915 what the auto industry is to today in terms of being the pacesetter or bellwether of the economy. The biggest difference is that no one railroad ever dominated the rail industry as Ford and GM once dominated the auto industry.
‘Transportation developments have greatly influenced the pace’ is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.This GMAT Reading Comprehension consists of 7 comprehension questions.
The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.
Solution and Explanation
- Which of the following can be logically inferred from the passage?
A) Early turnpike and canal systems were not largely regulated by the U.S. government
B) Current automakers directly employ more workers than did the railroad industry
C) The Pullman Car Company had more assets than the Westinghouse Brake Company
D) Railroads dramatically increased the land values in Atlanta
E) Highways are more regulated today than railroads.
Answer: A
Explanation: The last sentence of the 2nd paragraph says that the highways which came later were the first form of business. To have their operations regulated to a large degree by the government. We can infer that before the highways, there was no regulation about the turnpike and canal systems. A is the correct choice.
- It can be inferred from the passage that the railroad system:
A) Had a greater influence on American markets than the American highway system
B) Required more capital than any other business before
C) Increased all land values across the U.S.
D) Involved strong competition among the companies that formed it
E) Created more employment than any industry before.
Answer: B
Explanation: All we know is that railroads handed the first big opening for investment bankers. Maybe this system of carrying capital was not popular before and came about later. While railroads were coming up on the scene, they handed the first big occasion to investment bankers. Generally, until the passage explicitly mentions a superlative relation( biggest, largest, most.). We can not establish it because a lot of other scripts are possible. Then, the passage mentions". because of the stress of competition." and hence we can fluently conclude( D).
- During the post-Civil War, pre-World War I period, if the railroad business was declining it could be expected that:
A) Investment banking would decline
B) Land values would decline
C) Production at the Pullman Company would decline
D) U.S. savings would decline
E) Car production would increase
Answer: C
Explanation: The post-civil war pre-world war period is bandied about in the third paragraph. At the same place, they mention that roads were the only customer of Pullman. Logically, if your only customer gets a dip in business, it's anticipated that you'll feel the mass too. So it can be anticipated that Pullman would see a decline in the product. It isn't necessary but it's anticipated.
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