Question
S1: GDP – calculated as the total market value of all final goods and services produced during a specific time period – has long been used as an indicator of national development and progress. S2: However, critics of this use of GDP contend that GDP is an overly simple measure that neither effectively captures key aspects of human progress nor takes into account negative effects of economic development. S3: Accordingly, these critics have proposed the adoption of alternative measures, two of which are Gross National Happiness (GNH) and Genuine Progress Indicator (GPI).
S4: GNH, developed in Bhutan, is calculated by means of a questionnaire presented to a random sample composed of 8,000 of Bhutan’s citizens. S5: The process involved in calculating GNH is remarkably thorough, with each citizen answering 148 questions on a variety of quality of life-related topics. S6: However, no country other than Bhutan has adopted GNH, in part because of the time and expense required for interviewing a number of citizens sufficient for generating the data required for accurately calculating GNH. S7: A country’s GPI, on the other hand, can be calculated via the use of data that is already widely available. S8: In fact, GPI is in part based on information similar to that used in calculating GDP and differs from GDP mainly in that it is based on not only information on aggregate production but also information on negatives associated with economic growth, such as loss of leisure time and the cost of deterioration of nature and natural resources.
The author of the passage mentions the cost of deterioration of nature primarily in order to
provide an example of why the use of GDP ought to be discontinued
recommend that nations make the preservation of nature a higher priority
show the importance of using additional information beyond aggregate production to measure national development and progress
argue that GPI should be used instead of GDP
cite a specific effect that GDP does not take into account
Question
S1: GDP – calculated as the total market value of all final goods and services produced during a specific time period – has long been used as an indicator of national development and progress. S2: However, critics of this use of GDP contend that GDP is an overly simple measure that neither effectively captures key aspects of human progress nor takes into account negative effects of economic development. S3: Accordingly, these critics have proposed the adoption of alternative measures, two of which are Gross National Happiness (GNH) and Genuine Progress Indicator (GPI).
S4: GNH, developed in Bhutan, is calculated by means of a questionnaire presented to a random sample composed of 8,000 of Bhutan’s citizens. S5: The process involved in calculating GNH is remarkably thorough, with each citizen answering 148 questions on a variety of quality of life-related topics. S6: However, no country other than Bhutan has adopted GNH, in part because of the time and expense required for interviewing a number of citizens sufficient for generating the data required for accurately calculating GNH. S7: A country’s GPI, on the other hand, can be calculated via the use of data that is already widely available. S8: In fact, GPI is in part based on information similar to that used in calculating GDP and differs from GDP mainly in that it is based on not only information on aggregate production but also information on negatives associated with economic growth, such as loss of leisure time and the cost of deterioration of nature and natural resources.
The author of the passage mentions the cost of deterioration of nature primarily in order to
provide an example of why the use of GDP ought to be discontinued
recommend that nations make the preservation of nature a higher priority
show the importance of using additional information beyond aggregate production to measure national development and progress
argue that GPI should be used instead of GDP
cite a specific effect that GDP does not take into account
Scott Woodbury-Stewart
Founder and Expert GMAT Instructor
Solution:
To find the correct answer to this specific purpose question, we first locate “the cost of deterioration of nature” in the passage.
Scanning the passage, we see that “the cost of deterioration of nature” is mentioned at the very end of the passage. So, to understand the purpose of mentioning “the cost of deterioration of nature,” we’ll reread the sentences that precede it for context.
Looking at what immediately precedes “the cost of deterioration of nature” we see “negatives associated with economic growth, such as loss of leisure time and the cost of deterioration of nature.” So, the sentence uses “such as” to indicate that “the cost of deterioration of nature” is an example of “negatives associated with economic growth.”
Now, looking at more of the sentence, we see that it says, “GPI … differs from GDP mainly in that it is based on not only information on aggregate production but also information on negatives associated with economic growth, such as loss of leisure time and the cost of deterioration of nature ….” So, the passage indicates that “information on negatives associated with economic growth” is something that GPI is based on, and GDP is not based on.
So, the author mentions “the cost of deterioration of nature” to provide an example of “negatives associated with economic growth” that GPI is based on, and GDP is not based on.
(A) provide an example of why the use of GDP ought to be discontinued
This choice starts off correctly because, as we discussed in the introduction to this explanation, the author mentions “the cost of deterioration of nature” to “provide an example.”
However, this choice goes wrong partway through because, in the sentence in which “the cost of deterioration of nature is mentioned, the author does not argue that “the use of GDP ought to be discontinued.” The sentence is purely descriptive, presenting ways in which GPI differs from GDP.
This choice is a good example of why we’ll get best results by reading choices in their entirety.
(B) recommend that nations make the preservation of nature a higher priority
We can quickly see that this choice is incorrect by reviewing the sentence that mentions “the cost of deterioration of nature,” S8.
In doing so, we see that the verb “recommend” in this choice does not accurately describe any aspect of that sentence. After all, in S8, the author does not “recommend” that nations do anything. Rather S8 is entirely descriptive, presenting how GPI differs from GDP.
(C) show the importance of using additional information beyond aggregate production to measure national development and progress
We can see that this choice is incorrect by reviewing the sentence that mentions “the cost of deterioration of nature,” S8.
In doing so, we see that the author does not mention “the cost of deterioration of nature” to “show” (demonstrate or prove) anything. Rather, the author says, “such as … the cost of deterioration of nature” to provide an example of “negatives associated with economic growth.”
(D) argue that GPI should be used instead of GDP
We can see that this choice is incorrect by reviewing the sentence that mentions “the cost of deterioration of nature,” S8.
In doing so, we see that the verb “argue” in this choice does not accurately describe any aspect of that sentence. After all, in S8, the author does not “argue” anything. Rather S8 is entirely descriptive, presenting how GPI differs from GDP.
CORRECT ANSWER(E) cite a specific effect that GDP does not take into account
As we discussed in the introduction to this explanation, the author mentions “the cost of deterioration of nature” to provide an example of “negatives associated with economic growth” that GPI is based on, and GDP is not based on.
Since “cite a specific effect that GDP does not take into account” is another way of saying “provide an example of ‘negatives associated with economic growth’ that … GDP is not based on,” we can see that this choice correctly describes the author’s purpose in mentioning “the cost of deterioration of nature.”
