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Graduate Management Admission Test (2022) Questions and Answers

Question 1

Editorial: For the past two years, our dty has used photo radar to enforce speed limits at several Intersections, automatically photographing cars, measuring their speeds, and mailing tickets to offending drivers. In the second year of the program, the annual number of violations observed by photo radar dropped by 5 percent. This shows that the program has been effective at reducing speeding on the monitored streets.

The editorial's reasoning is most vulnerable to criticism on which of the following grounds?

Options:

It overlooks the possibility that speeding may have increased on many streets not monitored by photo radar.

It takes for granted that any other method of enforcing speed limits would be less effective than photo radar.

It fails to adequately address the possibility that the annual number of speeding violations in the city may fluctuate at random from year to year.

It conflates the claim that photo radar may Increase the incidence of speeding with the claim that a reduction in speeding has resulted in fewer observed violations.

It confuses a justified conclusion about the program's effectiveness with an unsubstantiated explanation of why the program has been effective.

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Question 2

In 90 percent of the commercial airline accidents last year, one or another of a group consisting of only 18 percent of the world's commercial airlines was involved. Since the other 82 percent of airlines were generally flying the same types of airplanes as the accident-prone airlines, significant differences in safety procedures must have been responsible for these differences In safety records.

Which of the following, if true about the world's commercial airlines last year, most seriously weakens the argument above?

Options:

Fifteen percent of the airlines were responsible for 97 percent of all air miles flown, and those airlines were involved in 87 percent of the accidents.

The accident-prone airlines were cited by their governments for a significantly higher number of safety violations than were the other airlines.

After an airline is involved in a serious accident, many of its regular customers switch to another airline, and some flights are canceled.

Twenty percent of the airlines employ personnel currently serving in their country's armed forces.

Twenty-four percent of the airplanes in regular service are over fifteen years old.

Question 3

It can most reasonably be inferred from the passage that multinational companies

Options:

are more likely to be financially successful in emerging nations if they aty themselves with local businesses that are using environmental sustainability Initiatives to drive growth

are less prone to the problems associated with the halo effect than are companies based only in one nation.

are increasingly likely to buy out emerging-nation companies that have successfully developed and Implemented environmental sustainability initiatives

are usually able to implement large-scale environmental sustainability Initiatives only after they have achieved a certain level of profitability.

tend to develop environmental sustainability initiatives that differ significantly from those that have been successfully and more easily implemented by smaller companies In the emerging world

Answer:

Explanation:

Many policymakers adopt a macro approach to environmental problems in emerging markets (countries experiencing rapid economic growth): discussing ambitious regulations in global faums and looking to giant multinational companies and non-governmental organizations (NGOs) for insight. But examining what successful companies in these countries are already doing to make growth more environmentally sustainable may make more sense.

One study identifies several such firms that are turning eco-consciousness into a source of competitive advantage. The most salient quality of these highly profitable companies Is that they turn limitations (of resources, labor, and Infrastructure) into opportunities. An Indian cement company suffering water shortages developed the world's most water-efficient cement-making method, using air-cooling rather than water cooling. A Philippines utility reduced its water loss through wastage and illegal tapping from 63 percent (1997) to 12 percent (2010) by making water more affordable for lower-Income consumers. A Chinese company makes air conditioners powered with buildings' waste heat, reducing strain on the electric grid.

The companies also seek to shape their business environment to support sustainable objectives. Some lobby regulators: a Brazilian organic-sugar producer works with Brazil's government to establish an organic certification system. Some form partnerships: Kenya's Equity Bank allies with international groups to reduce its risks when lending to smallholders or single-family farms; a Brazilian cosmetics company works with suppliers to produce sustainable packaging. Some firms also work to reach and educate lower-income consumers, sacrificing short-term profits to create future markets: a Chilean forestry company organizes local carpenters into networks and connects them to low-income customers.

One could quibble with the study. Switzerland's Phil Rosenzweig has argued that management writers are prone to a halo effect: they treat a company's temporary success as proof that It has discovered some eternal principle of good management. That some successful companies have embraced environmental sustainability does not prove that It makes companies successful. Some firms, having prospered, can afford splurging on green Initiatives; some pursue eco-Initiatives for public relations purposes.

Nonetheless, the study Is thought-provoking. Critics argue that environmentalism Is a rich-world luxury, but such fears are overblown. When natural resources are scarce and consumers are cash-strapped, sustainability can be a lucrative business strategy.

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