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?

A] Unemployment rates are not useful indicators of growth and prosperity.

B] Economic growth cannot be measured in terms of productivity.

C] Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D] There has not been an increase in the number of bankruptcy lawyers.

E] The media often misrepresent the current state of economic affairs.

This CR concludes that the increase in the number of people filing for BANKRUPTCY proves that the ECONOMY has not entered a phase of growth and prosperity.
The assumption is that there is NO OTHER REASON for the increase in the number of people filing for bankruptcy.

Answer choice C, negated: Legislation has recently been passed to make legal bankruptcy easier to obtain.
The negation of C implies that the increase in the number of people filing for bankruptcy is due to the RECENTLY PASSED LEGISLATION, invalidating the conclusion that the ECONOMY is to blame for the increase. Since the negation of C invalidates the conclusion, C is the necessary assumption: WHAT MUST BE TRUE for the conclusion to be valid.

The correct answer is C.

For those tempted by answer choice D:
The negation of this answer choice could potentially STRENGTHEN the conclusion. If there are MORE bankruptcy lawyers, and they are BUSIER than they have been in years -- as is stated in the passage -- then the conclusion that the economy is not in phase of prosperity is STRENGTHENED. Since the negation of D could strengthen the conclusion, D is NOT something that MUST BE TRUE for the conclusion to be valid.
Eliminate D.

GMATGuruNY wrote:

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?

A] Unemployment rates are not useful indicators of growth and prosperity.

B] Economic growth cannot be measured in terms of productivity.

C] Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D] There has not been an increase in the number of bankruptcy lawyers.

E] The media often misrepresent the current state of economic affairs.

This CR concludes that the increase in the number of people filing for BANKRUPTCY proves that the ECONOMY has not entered a phase of growth and prosperity.
The assumption is that there is NO OTHER REASON for the increase in the number of people filing for bankruptcy.

Answer choice C, negated: Legislation has recently been passed to make legal bankruptcy easier to obtain.
The negation of C implies that the increase in the number of people filing for bankruptcy is due to the RECENTLY PASSED LEGISLATION, invalidating the conclusion that the ECONOMY is to blame for the increase. Since the negation of C invalidates the conclusion, C is the necessary assumption: WHAT MUST BE TRUE for the conclusion to be valid.

The correct answer is C.

For those tempted by answer choice D:
The negation of this answer choice could potentially STRENGTHEN the conclusion. If there are MORE bankruptcy lawyers, and they are BUSIER than they have been in years -- as is stated in the passage -- then the conclusion that the economy is not in phase of prosperity is STRENGTHENED. Since the negation of D could strengthen the conclusion, D is NOT something that MUST BE TRUE for the conclusion to be valid.
Eliminate D.

Hi Mitch,

Is assumption negation technique a useful way to find the right answer? will this technique hold true for all assumption questions.

Regards,
Satya.

GMATGuruNY wrote:

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?

A] Unemployment rates are not useful indicators of growth and prosperity.

B] Economic growth cannot be measured in terms of productivity.

C] Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D] There has not been an increase in the number of bankruptcy lawyers.

E] The media often misrepresent the current state of economic affairs.

This CR concludes that the increase in the number of people filing for BANKRUPTCY proves that the ECONOMY has not entered a phase of growth and prosperity.
The assumption is that there is NO OTHER REASON for the increase in the number of people filing for bankruptcy.

Answer choice C, negated: Legislation has recently been passed to make legal bankruptcy easier to obtain.
The negation of C implies that the increase in the number of people filing for bankruptcy is due to the RECENTLY PASSED LEGISLATION, invalidating the conclusion that the ECONOMY is to blame for the increase. Since the negation of C invalidates the conclusion, C is the necessary assumption: WHAT MUST BE TRUE for the conclusion to be valid.

The correct answer is C.

For those tempted by answer choice D:
The negation of this answer choice could potentially STRENGTHEN the conclusion. If there are MORE bankruptcy lawyers, and they are BUSIER than they have been in years -- as is stated in the passage -- then the conclusion that the economy is not in phase of prosperity is STRENGTHENED. Since the negation of D could strengthen the conclusion, D is NOT something that MUST BE TRUE for the conclusion to be valid.
Eliminate D.

Great explanation.
I pass this question and the following is my thought process which bring me to the correct answer. I want experts/member comment on this process because my though process is similar to that of typical persons.

draw quickly the argument (only a few seconds but this make you clear of argument)
increased bankcrubcy--------> slow grow.

prethink assumption: increased bankrupcy shows the slow grow

go to answer choices:
C is very close to what I prethink. there is another reason for bankcrupcy.

the matter I want you join the discussion is that though the assumption I prethink is not exactly the assumption in the correct answer C, the prethought assumption bring me closer the the correct assumption. This is the point. In most of the CR questions such as Assumption/weaken/strengthen questions, what we prethink is not exactly the same as the correct answer. But prethink is particularly effective because if bring us closer to the correct answer.

so, prethink is corner stone, the process gmat CR test us.

pls, comment/advise. Thank you.