GMAT Exam  >  GMAT Notes  >  100 RCs for GMAT  >  Practice Test: Reading Comprehension - 50

Practice Test: Reading Comprehension - 50 | 100 RCs for GMAT PDF Download

Directions: Read the given passage carefully and answer the questions as follows:

Passage

The fall of the Berlin Wall represented a political victory of the free market against a centrally planned economy. Though highly interventionist and dependent on international defense and industrial subsidy, West Germany was a model of economic expansion in the post-war era. East Germany, while relatively successful in comparison with other Eastern Bloc nations, was far behind West Germany with regard to the buying power of its people. It was hard to avoid obvious comparisons such as the fact that 1 in 4 East Germans did not even have an indoor toilet. Western German authorities were therefore committed to rapid integration of the two Germanys without resorting to massive controls on internal migration, external capital controls, or continuation of a large state-owned industrial sector.

Other nations were already wary of a united Germany. France, a perpetual competitor, saw Germany’s size advantage increase overnight. In Gross Domestic Product (“GDP”) alone, an historical size advantage of 23% jumped to nearly 30%, with stronger growth promised when East Germany was fully integrated.

Within Germany, there should have been no doubt that integration would be costly. The question was whether the government was up to the task. In Italy, for example, the central government has invested tremendous resources in promoting the economy of its underperforming Southern region. In contrast, in the United States, the local population bears the burden of varying economic performance. For example, the American South is allowed to exist with much higher rates of poverty and lower education than the rest of the nation.

Rather than allow East Germany to fall into total disrepair, with millions fleeing to the West and a long-term negative impact on national GDP growth, West German authorities decided to try to spend their way out of the crisis, creating almost overnight an infrastructure in East Germany to provide a standard of living comparable to that in West Germany. The goal was to take an under-performing country and raise it to “first world” standards in only a few years. This goal would have been preposterous had not West Germany possessed the resources to accomplish the task.

Question for Practice Test: Reading Comprehension - 50
Try yourself:Which of the following best describes the way the first paragraph functions in the context of the passage?
View Solution

Question for Practice Test: Reading Comprehension - 50
Try yourself:According to the author, which of the following is the principal reason that German reunification could succeed?
View Solution

Question for Practice Test: Reading Comprehension - 50
Try yourself:The passage suggests which of the following about the relationship between West Germany and France?
View Solution

Question for Practice Test: Reading Comprehension - 50
Try yourself:The author mentions the United States most probably in order to
View Solution

The document Practice Test: Reading Comprehension - 50 | 100 RCs for GMAT is a part of the GMAT Course 100 RCs for GMAT.
All you need of GMAT at this link: GMAT
100 docs

Top Courses for GMAT

100 docs
Download as PDF
Explore Courses for GMAT exam

Top Courses for GMAT

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

ppt

,

Extra Questions

,

MCQs

,

Practice Test: Reading Comprehension - 50 | 100 RCs for GMAT

,

Previous Year Questions with Solutions

,

Practice Test: Reading Comprehension - 50 | 100 RCs for GMAT

,

Objective type Questions

,

Free

,

pdf

,

video lectures

,

Viva Questions

,

Sample Paper

,

Practice Test: Reading Comprehension - 50 | 100 RCs for GMAT

,

practice quizzes

,

mock tests for examination

,

past year papers

,

Semester Notes

,

Important questions

,

study material

,

Summary

,

shortcuts and tricks

,

Exam

;