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GRE RC #20-determined by governmental planning
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15 May 2015, 10:03
15 May 2015, 10:03
Expert Reply
Although the development of new infrastructure (such public facilities as power plants, schools, and bridges ) is usually determined by governmental planning, sometimes this development can be planned more flexibly and realistically by private investors who anticipate profit from the collection of user fees. Such profits can contribute to the financing of more infrastructure if demand proves great enough, whereas the reluctance of developers to invest in such projects can signal that additional infrastructure is not needed. During the economic boom of the 1980's, for example, the state of Virginia authorized private developers to build a $300 million toll road. These developers obtained the needed right-of- way from property owners, but by 1993 they still had not raised the necessary financing. The unwillingness of investors to finance this project does not negate the viability of privately financed roads; rather, it illustrates a virtue of private financing. If a road appears unlikely to attract enough future traffic to pay for the road, then it should not be built.
1. The primary purpose of the passage is to
(A) build a case for increasing the development of new infrastructure
(B) advocate an alternative to government financing of infrastructure
(C) explain the failure of a privately financed venture
(D) suggest the types of infrastructure most appropriate for private financing
(E) argue against government restrictions on developing new infrastructure
2. The passage implies that the “governmental planning” mentioned in line 1 may lead to which of the following problems?
(A) Improper use of profits derived from user fees
(B) Unduly slow development of necessary new infrastructure
(C) Unrealistic decisions about developing new infrastructure
(D) Incorrect predictions about profits to be gained from user fees
(E) Obstruction of private financing for the development of new infrastructure
3. According to the passage, which of the following is true of the toll road mentioned in line 12?
LINE 12: to build a $300 million toll road. These developers obtained the needed right-of- way from property owners, but by 1993 they still had not raised the necessary financing.
(A) After it was built, it attracted too little traffic to pay for its construction.
(B) It was partially financed by the state of Virginia.
(C) Its development was authorized during an economic boom.
(D) Its construction was controversial among local residents.
(E) Its developers were discouraged by governmental restrictions on acquiring the necessary land.
4. The passage suggests that which of the following would occur if a privately financed bridge that proved to be profitable failed after a number of years to meet the demands of traffic?
(A) Private developers who financed the bridge would rely on governmental authorities to develop new infrastructure.
(B) User fees would be increased so that usage would become more costly.
(C) Profits generated by user fees would be used to help finance the construction of new infrastructure to alleviate the traffic problem.
(D) The success of the project would be jeopardized by public dissatisfaction with the project's adequacy.
(E) Governmental authorities would be reluctant to rely on private contractors to develop a new bridge.
1. The primary purpose of the passage is to
(A) build a case for increasing the development of new infrastructure
(B) advocate an alternative to government financing of infrastructure
(C) explain the failure of a privately financed venture
(D) suggest the types of infrastructure most appropriate for private financing
(E) argue against government restrictions on developing new infrastructure
2. The passage implies that the “governmental planning” mentioned in line 1 may lead to which of the following problems?
(A) Improper use of profits derived from user fees
(B) Unduly slow development of necessary new infrastructure
(C) Unrealistic decisions about developing new infrastructure
(D) Incorrect predictions about profits to be gained from user fees
(E) Obstruction of private financing for the development of new infrastructure
3. According to the passage, which of the following is true of the toll road mentioned in line 12?
LINE 12: to build a $300 million toll road. These developers obtained the needed right-of- way from property owners, but by 1993 they still had not raised the necessary financing.
(A) After it was built, it attracted too little traffic to pay for its construction.
(B) It was partially financed by the state of Virginia.
(C) Its development was authorized during an economic boom.
(D) Its construction was controversial among local residents.
(E) Its developers were discouraged by governmental restrictions on acquiring the necessary land.
4. The passage suggests that which of the following would occur if a privately financed bridge that proved to be profitable failed after a number of years to meet the demands of traffic?
(A) Private developers who financed the bridge would rely on governmental authorities to develop new infrastructure.
(B) User fees would be increased so that usage would become more costly.
(C) Profits generated by user fees would be used to help finance the construction of new infrastructure to alleviate the traffic problem.
(D) The success of the project would be jeopardized by public dissatisfaction with the project's adequacy.
(E) Governmental authorities would be reluctant to rely on private contractors to develop a new bridge.
Show: :: Answer
1. B
2. C
3. C
4. E
2. C
3. C
4. E
