Bankruptcy---assumption

This topic has expert replies
User avatar
Master | Next Rank: 500 Posts
Posts: 234
Joined: Tue Feb 22, 2011 5:02 am
Thanked: 5 times
Followed by:3 members

Bankruptcy---assumption

by champmag » Wed Apr 27, 2011 4:13 am
The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. This analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months, and bankruptcy lawyers report that they are busier than they have been in years.

Which of the following is an assumption on which the argument depends?

"¢ Unemployment rates are not useful indicators of growth and prosperity.
"¢ Economic growth cannot be measured in terms of productivity.
"¢ Legislation has not been recently passed to make legal bankruptcy easier to obtain.
"¢ There has not been an increase in the number of bankruptcy lawyers.
"¢ The media often misrepresent the current state of economic affairs.

Why can't the answer be D?

User avatar
Legendary Member
Posts: 1101
Joined: Fri Jan 28, 2011 7:26 am
Thanked: 47 times
Followed by:13 members
GMAT Score:640

by HSPA » Wed Apr 27, 2011 5:04 am
Kindly help

Premise 1: media points to lower unemployment rates and increased productivity
Premise 2: Counter: This analysis is false.
Premise 3: Bankruptcy cases has increased

1) I am not able to find the conclusion properly (guess: Premise 2)
2) Answer choices has lots of 'Not'. (negation technique)

IMO C
First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 645
Joined: Mon Jul 26, 2010 12:42 pm
Location: US
Thanked: 527 times
Followed by:227 members

by e-GMAT » Wed Apr 27, 2011 6:07 am
The correct answer in my opinion is C. C is a classic Protect against Weakeners assumption choice.

The author in this question argues that the economy is "not" entering a phase of prosperity because of 2 reasons:

1) The number of people filing for bankruptcy has increased
2) Bankruptcy lawyers report that they are busier than they have been in years

While making this conclusion, he makes 2 assumptions:

1. "Bankruptcy filings are a better indicator of the economy enter growth phase than unemployment and productivity rates are."
2. "There is no alternate reason (unrelated to the economy) why the bankruptcy filings are higher." Some examples of alternate reasoning could be

--- the government has passed on a new legislation that allows people to file for Bankruptcy for situations that they were not allowed to do so earlier
--- the government makes changes in the Bankruptcy regulation that makes filing easier so that people who preciously did not consider filing for bankruptcy are now filing for the same.
--- for some reason the number of bankruptcy lawyers has decreased significantly.

Choice C, is similarly worded to assumption 2 and is the correct answer.


Choice D states that the number of lawyers have increased. It is a strengthener because it strengthens author's position that in-spite of a greater number of lawyers. However, this does not have to be true for the argument to hold true. Lets apply the negation test to prove this point.

Negating choice D we get, the number of bankruptcy lawyers has "not" increased. -- This does not necessarily mean that the number of bankruptcy lawyers has decreased. The number of bankruptcy lawyers could also stay the same and the author's argument holds true even if the number of lawyers remain the same. Therefore this choice does not pass the negation test.

For e-gmat customers, both the negation test and the "protect against weakeners" assumption types are covered in the assumption concept file. A similar example along with multiple exercise problems are there in the assumption application file.

Senior | Next Rank: 100 Posts
Posts: 63
Joined: Tue Apr 26, 2011 8:25 pm
Thanked: 3 times

by Calvin123 » Wed Apr 27, 2011 8:00 pm
e-GMAT wrote:
1. "Bankruptcy filings are a better indicator of the economy enter growth phase than unemployment and productivity rates are."
2. "There is no alternate reason (unrelated to the economy) why the bankruptcy filings are higher." Some examples of alternate reasoning could be
I am convinced with the reasoning given to prove D is right, but can you please explain why A is not correct or not preferable over D.

I think A is also an assumption.

Legendary Member
Posts: 586
Joined: Tue Jan 19, 2010 4:38 am
Thanked: 31 times
Followed by:5 members
GMAT Score:730

by rohu27 » Wed Apr 27, 2011 8:39 pm
i eliminated A and B coz if A was the answer B could well be the contender. so both are out

negate d- numebr of lawyers did not increase, our argument still is safe, existing lawyers are filing for more cases as such incidence has increased may be. fine.

it has to be C