Machines X and Y work at their respective constant rates. How many more hours does it take machine Y, working alone, to fill a production order of a certain size than it takes machine X, working alone? GMAT Explanation

Machines X and Y work at their respective constant rates. How many more hours does it take machine Y, working alone, to fill a production order of a certain size than it takes machine X, working alone?

(1) Machines X and Y, working together, fill a production order of this size in two-thirds the time that machine X, working alone, does
(2) Machine Y, working alone, fills a production order of this size in twice the time that machine X, working alone, does

Correct Answer: E

How many different prime numbers are factors of the positive integer n? GMAT Explanation

How many different prime numbers are factors of the positive integer n?

(1) Four different prime numbers are factors of 2n.
(2) Four different prime numbers are factors of n^2.

Correct Answer: B

The rate of a certain chemical reaction is directly proportional to the square of the concentration of chemical A present and inversely proportional to the concentration of chemical B present. If the concentration of chemical B is increased by 100 percent, which of the following is closest to the percent change in the concentration of chemical A required to keep the reaction rate unchanged? GMAT Explanation

The rate of a certain chemical reaction is directly proportional to the square of the concentration of chemical A present and inversely proportional to the concentration of chemical B present. If the concentration of chemical B is increased by 100 percent, which of the following is closest to the percent change in the concentration of chemical A required to keep the reaction rate unchanged?

(A) 100% decrease
(B) 50% decrease
(C) 40% decrease
(D) 40% increase
(E) 50% increase

Correct Answer: D

Economist GMAT Reading Comprehension Challenge #30

Economist GMAT Reading Comprehension Challenge #30

Welcome to the Economist GMAT Reading Comprehension! First time? Here are suggestions for approaching the article.

Economist Article

Economist Article: "Wirecard's scandal shows the benefits of short-sellers"

Link: https://www.economist.com/leaders/2020/06/24/wirecards-scandal-shows-the-benefits-of-short-sellers

Paragraph Summaries

Germans consumed by tech envy of America...

Wirecard is a German financial tech company, among one of the leading firms on the German stock exchange but now on the brink of collapse after alleged market manipulation.

Wirecard's rise and fall is a case study in the carnage...

Wirecard was arguably pumped up by government regulators and investors who were so distracted by the company's narrative that they did not do a proper accounting. Short-sellers, who bet against publicly traded firms, noticed something was off about Wirecard years ago.

Questions about the firm's accouting...

Over the past 18 months, Germany's market regulator ignored increasing clamor from short-sellers about Wirecard and instead doubled down on its propping up the firm, banning short selling against it.

Big banks and investors...

Banks acted in accordance with regulators to continue to prop up Wirecard, perhaps out of ignorance and a lack of proper due diligence.

When so many clever people can get it wrong...

Counterbalancing forces such as short-sellers can be a valuable check on major market forces such as regulators and banks, especially in places where company managers can strongarm shareholders.

Those who bet against companies have long been eyed...

Although throughout history short-sellers have occasionally acted in bad faith, they frequently are more objectively discovering firms that are overvalued and unsustainable.

Shorting does more than just root out...

Short-sellers have a lot on the line financially by taking a position against companies, and their activity can both uncover illegitimate practices as well as act as a corrective force for stock prices of legitimate but overvalued firms.

More's the pity, then...

Governments have motivating forces to align themselves with rising firms within their countries while many places are increasingly curbing the ability to short-sell, yet short-sellers will continue to be important agents for keeping markets honest even when unpopular.

Primary Purpose

To acknowledge the sometimes-overlooked significance of a specific group of individuals.

Main Idea

Although short-sellers may be unpopular as a group that bets on the failure of companies, they nonetheless play a crucial role in keeping publicly traded firms accountable.

Happy Studies

Hope you found this Economist GMAT article interesting and helpful. Good luck on your GMAT!

Economist GMAT Reading Comprehension Challenge #27

Economist GMAT Reading Comprehension Challenge #27

Welcome back to the Economist Reading Comprehension Challenges! Just getting started? Here are some reading strategies on the EGRCC home page.

Economist Article

Economist Article: Walmart ekes out an edge in groceries during the pandemic

Link: https://www.economist.com/business/2020/05/23/walmart-ekes-out-an-edge-in-groceries-during-the-pandemic

Paragraph Summaries

As COVID-19 began...

Amazon's pandemic-related expenses are eating away at its profits this quarter, while Walmart is performing comparatively better in certain respects.

On May 19th the answer...

Walmart's earnings suggest very strong performance. The year on year rate of revenue increase in the highest in nearly 20 years and "omnichannel" sales (online + in-store) are up by 74%. Walmart is outperforming Amazon on quarterly net income relative to last year (Amazon is down on this metric).

The sales surge was not...

Walmart's numbers can somewhat be attributed to heavy sales in March but have maintained since.

Walmart's performance owes...

Walmart is continually able to contain expenses - its cost of sales last quarter rose in line with revenues.

But the company has also...

Walmart has been flexible in its approach to fulfillment, drastically ramping up its "ship from stores" and two-hour delivery services.

Walmart allows shoppers...

Walmart accommodates "blended purchases" of food products - online orders that can be delivered or picked up curbside - and this helps drive omnichannel sales.

It is here that Walmart has outshone Amazon...

Amazon's online grocery delivery services suffer in comparison, with its Whole Foods grocery line being pricier than Walmart's alternative and its cheaper Amazon Fresh service struggling to meet demand in a timely manner.

This has allowed Walmart at last...

Walmart's ~$15B investment in e-commerce was considered a financial loss in previous years, but now the outlook is potentially a little brighter for the future.

Some new customers...

While some customers may not continue with Walmart's digital services once their preferred brick-and-mortar retailers reopen, evidence from the 2008 recession indicates that Walmart may retain many of them.

His view is bolstered...

A previous study suggests that future consumer behavior is tending less towards purely in-store or online retailers and more towards hybrid services like the one Walmart is using.

Primary Purpose

To discuss a surprising new trend and provide evidence that it may be able to persist

Main Idea

Walmart's grocery delivery and pickup service has overcome initial challenges and is now edging out Amazon's competing services in many important respects, and there are reasons to believe that competitive edge will persist into the long term.

Happy Studies

Hope you found the article interesting and the breakdown helpful. Good luck getting your GMAT reading in championship shape!

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