Economist GMAT Reading Comprehension Challenge #34

Economist GMAT Reading Comprehension Challenge #34

Read Economist articles to improve your GMAT Reading Comprehension! Need some help using these? Here are tips for reading the Economist articles.

Economist Article

Economist Article: What quantum computers reveal about innovation

Link: https://www.economist.com/leaders/2020/09/26/what-quantum-computers-reveal-about-innovation

Paragraph Summaries

It is hard to choose one moment…

Quantum computing, or at least discussion of its theoretical possibility, has been around for 40 years,

Entering middle age…

Quantum computing is potentially becoming commercially viable — driven largely by venture capital — even if the technology is far from mature.

If those bets pay off…

The implications of a fully operational quantum computer would be revolutionary for numerous broad fields from chemistry and mathematics to engineering and finance.

The field’s progress is interesting for another reason…

In developing complex technology, every part of the process is important, not just the late-stage business portions. The biggest risks are taken early in development

The state can be one…

To date, world governments have invested billions of dollars in quantum computing research.

Other early work was done…

Early quantum breakthroughs were in the mid-90s at firms like IBM, and today Google and Microsoft are forerunners as well.

The trick for such…

Governments should be ruthless in hedging their bets with technology investments, if not more so than venture capitalists.

There are other lessons…

The development of quantum computing as a field has been the collective work of thousands of mathematicians, physicists, and engineers and has benefitted from progress in even broader fields — rather than the work a handful of individuals.

None of that…

Even if a small number of people may become the “business face” of quantum computing in the future, getting the technology ready has been a massive effort by a lot of people.

Primary Purpose

To underscore the amount of work required to mature a complex technology

Main Idea

Quantum computing is a complex and promising technology whose breakthroughs are due to the collective work and effort of world governments and thousands of experts.

Happy Studies

Hope you found this Economist GMAT RC Challenge interesting and helpful. Good luck on your GMAT verbal – keep reading!

Economist GMAT Reading Comprehension Challenge #33

Economist GMAT Reading Comprehension Challenge #33

Read the Economist to improve your GMAT Reading Comprehension! Need some tips on using these? Here are suggestions for reading the Economist articles.

Economist Article

Economist Article: Britain’s treasure-hunting hobbyists get professional

Link: https://www.economist.com/britain/2020/09/10/britains-treasure-hunting-hobbyists-get-professional

Paragraph Summaries

In a field next to his local pub…

This paragraph profiles a metal detecting hobbyist and some of the finds he uncovers in areas local to him.

Lockdown and the furlough scheme…

In the last few months, British metal detecting hobbyists with time on their hands have uncovered items of high historical and monetary value.

England provided fertile terrain…

Countries across Europe legally provide for payouts to detectorists that are generally favorable, and due to the light regulations the hobby has proliferated in the last five years.

This has prompted the establishment to take notice…

Metal detecting hobbyists tend to butt heads with academics and archaeologists, who can perceive amateur metal detectors as tampering with historical artifacts without proper care or protocol. Programs have been started to train detectorists to practice metal detecting responsibly.

Detectorists see attempts to professionalize them…

Many detectorists are against these training programs for reasons including that they perceive them to be a form of regulation and licensing.

Instead, they prefer to focus…

Detectorists are increasingly aiming to share knowledge internally to their community via live streaming and ticketed events.

Mr. Mahoney now wants to take…

The hobbyist from the first paragraph is assembling a team to help other hobbyists who believe they’ve made large discoveries.

Primary Purpose

To profile a growing group of individuals and their views.

Main Idea

The community of metal detecting hobbyists in the UK is actively growing and will continue to embrace its legal autonomy as it grows further.

Happy Studies

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

Economist GMAT Reading Comprehension Challenge #32

Economist GMAT Reading Comprehension Challenge #32

Welcome to the Economist GMAT Reading Comprehension #32! Need some reading tips? Here are recommendations for approaching the Economist articles.

Economist Article

Economist Article: The rising prevalence of dementia is a global emergency

Link: https://www.economist.com/leaders/2020/08/29/the-rising-prevalence-of-dementia-is-a-global-emergency

Paragraph Summaries

Of all the troubles facing the world…

Dementia today, and especially looking ahead, constitutes a global emergency that societies are not equipped to handle humanely and sustainably.

“Dementia” is an umbrella term…

This paragraph defines dementia as the collective term for a group of related diseases and cites figures to illustrate its prevalence today as well as its anticipated future prevalence in a world whose population is aging and rising in size.

The problems these numbers will bring…

The pandemic has underscored what already has been (and what will continue to be) a major difficulty for looking after people with dementia — insufficiency of resources and personnel for care.

Not all the news is bad…

Partial solutions such as decreases of risk-creating behavior and drug trials may help with dementia numbers in the foreseeable future, but they are only partial solutions and will only benefit some patients.

That is why governments should act now…

Governments should take action to reduce the future economic harm of dementia — namely, funding for research.

Governments also need to think…

Another relevant financial question is how governments can and should finance care via the taxpayer.

An even more fundamental question…

Sufficient numbers of care workers for dementia patients will be hard to maintain, as positions are poorly paid and require a lot of empathy and patience.

Lastly, evidence suggests…

Though many cases of dementia can be delayed, the reality of the numbers is unavoidable. Given the other noted difficulties requiring address, it’s important that beginning to look for solutions to the societal difficulties surrounding dementia happen sooner rather than later.

Primary Purpose

To prescribe a course of action for handling a challenging problem.

Main Idea

Because dementia is poised to constitute a major public health crisis, active government responses are needed now to minimize the future economic and societal fallout.

Happy Studies

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

Economist GMAT Reading Comprehension Challenge #31

Economist GMAT Reading Comprehension Challenge #31

Welcome to the Economist GMAT Reading Comprehension #31! Need some guidance? Here are tips for approaching the Economist articles.

Economist Article

Economist Article: TikTok and the Sino-American Tech Split

Link: https://www.economist.com/leaders/2020/07/11/tiktok-and-the-sino-american-tech-split

Paragraph Summaries

Over the past few years countless…

Financial trends in recent years have meant mutual success for American and Chinese technology in each others’ markets, despite predictions of rupture due to international tensions.

Yet if you examine the events…

The international picture of recent weeks is indicating, however, that a split may be inevitable. Several examples are cited such as the potential banning of TikTok and the sidelining of Huawei’s 5G networks in several countries.

The split is happening at two velocities…

The Chinese-American separation may be a little more painless on the software side of things due to both countries’ relatively low financial stakes in foreign markets.

Hardware is moving much more slowly…

The global integration of the hardware market, as opposed to the software market, will make the separation incredibly challenging and perhaps both slow and expensive to adapt.

If the splintering now seems inevitable…

It is unclear whether the rest of the world will align more with Chinese or American technology should the split occur. The annual expenses of the global hardware industry could also multiply as a result.

Primary Purpose

To weigh the implications of a possible future event.

Main Idea

A potential legal division of American and Chinese technology companies would likely have far-reaching, somewhat unknowable implications for the global hardware market.

Happy Studies

Hope you found this article interesting and helpful. Good luck on your GMAT Reading Comprehension – see you next time!

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!

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