MGMAT CR problem

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MGMAT CR problem

by replayyyy » Sun Oct 31, 2010 3:06 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?

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.

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by dagmat » Sun Oct 31, 2010 4:25 am
Interesting one this is :)

Conclusion: The reason for economic growth and prosperity is not lower unemployment rates and increased productivity, rather its increased bankruptcy filings.

Evidence for for wrong claim (from the author's point of view): Lower unemployment rates and increased productivity.
Evidence for author's point of view: increased bankruptcy filings and busy bankruptcy lawyers.

A. Stimulus gives no indication of the usefulness of indicators. The author seems to gravitate towards one over the other.

B. Again no indication. Irrelevant.

C. (Correct IMO). The author is correlation increased bankruptcy filings with economic growth. It could be the case that the movement is purely coincidental. Specifically, a law that makes filing easier and hence causes a spike in filings might, to an untrained observer, appear to be responsible for a common phenomenon. This factor would have to be ruled out to uphold the author's claim.

D. Increase in lawyers is not the reason for economic growth. Rather, its the evidence.

E. Irrelevant.

Hope above is a good analysis of the question :)

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by abhishekg21 » Sun Oct 31, 2010 6:50 am
I think answer is D

A Unemployment rates are not useful indicators of growth and prosperity.--this is irelevant
B. Economic growth cannot be measured in terms of productivity. --this is irelevant
C. Legislation has not been recently passed to make legal bankruptcy easier to obtain. --this is irelevant .nothing ha sben given in paasge on this
D. There has not been an increase in the number of bankruptcy lawyers. --This is correct.Because if the number of lawyers has gone down then the whole argument fails since lawyers are keepign more busy as they numbers have gone down
E. The media often misrepresent the current state of economic affairs.--nothing can be said on this

whats the OA ?

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by sanabk » Mon Nov 01, 2010 4:27 pm

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by missionGMAT007 » Tue Nov 02, 2010 6:28 am
well... it is C

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by SmarpanGamt » Tue Nov 02, 2010 11:24 am
Guys IMO B

What is the conclusion in the argument ?

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by sk818020 » Thu Nov 04, 2010 7:12 pm
The argument states that despite lower unemployment and increased productivity, the economy is not growing prosperously because the number bankruptcies has gone up and bankruptcy lawyers are busier.

The argument assumes that the economy and nothing else directly caused the number of bankruptcies to increase. Any assumption that says any other factor did not cause the number of bankruptcies to increase will be correct. C does this. It says legislation did not cause the number of bankruptcies to increase. None of the other answers address this point, which is why they are wrong.

Hope this helps.

Thanks,

Jared