Public electrical utilities (Knewton Prep)

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For decades, public electrical utilities in Country Z have used revenues from commercial customers to fund programs that subsidize reduced-cost service for low-income families. A law in Country Z sets a maximum rate that electrical utilities may charge its commercial customers. Recently, rising fuel prices have brought the cost of providing electricity in Country Z to amounts at or above this maximum rate.

The information above provides the strongest support for which of the following conclusions?


(A) Commercial enterprises in Country Z have long had access to large amounts of electricity that Country Z's low-income families cannot afford.
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(B) In the past, private donors in Country Z have helped subsidize electrical service to low-income families, but such donations have recently declined.

(C) Even if fuel prices decrease, Country Z will likely increase the maximum electricity rate, thus generating greater revenues to subsidize discounted service to low-income families.

(D) Some families in Country Z are not classified as "low income" but nevertheless cannot afford to pay the maximum electricity rate.

(E) Unless Country Z's electrical utilities find a new source of income to subsidize reduced-cost services to low income families, they must either stop providing these services or experience losses.

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by AIM GMAT » Sun Apr 24, 2011 9:08 am
I would opt for E , but i feel like i have cheated , very similar to an OG question .

(A) Commercial enterprises in Country Z have long had access to large amounts of electricity that Country Z's low-income families cannot afford. -- Out of scope.

(B) In the past, private donors in Country Z have helped subsidize electrical service to low-income families, but such donations have recently declined. -- This doesnt have any connecting link to the argument , it doesnt gv a reason y we shud increase the rate.

(C) Even if fuel prices decrease, Country Z will likely increase the maximum electricity rate, thus generating greater revenues to subsidize discounted service to low-income families. -- We are not supposed to discuss wht wud happen if the fuel prises reduce , restrict to wht info is provided.

(D) Some families in Country Z are not classified as "low income" but nevertheless cannot afford to pay the maximum electricity rate. -- If the families are not classfied as "low income " and have to pay high rates , oops this goes against the argument.

(E) Unless Country Z's electrical utilities find a new source of income to subsidize reduced-cost services to low income families, they must either stop providing these services or experience losses. -- This gives us the reason why there is need to increase the rates , Bingo !!!
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by RadiumBall » Sun Apr 24, 2011 9:25 pm
Thanks AIM, can you tell me which OG problem does this resemble?

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by AIM GMAT » Sun Apr 24, 2011 10:09 pm
RadiumBall wrote:Thanks AIM, can you tell me which OG problem does this resemble?
Verbal Review (Supplement the PURPLE coloured book)

The question is as follows :--

United States hospitals have traditionally relied primarily on revenues from paying patients to offset losses from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.

Which of the following conclusions is best supported by the information above?
(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways to raising additional income for unreimbursed care, they must either deny some of that care of suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to afford private insurance for hospital care.
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such donations are at present declining.


The other one you posted also resembled , let me know if you want to know the similar Official question .
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by HSPA » Sun Apr 24, 2011 11:04 pm
(A)[ advance in technology is not the topic]
(B) If hospitals do not find ways to raising additional income for unreimbursed care, they must either deny some of that care of suffer losses if they give it.
(C)[Rich guys dont need insurance and govt insurance vs private looks out of scope]
(D)[Insurance pays only a given percentage like 80% of total medical expenses 80/100$ and 40/50$ (change if total fee from 100 to 50$) ]
(E)[Philanthropic donation is out of scope]
First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
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HSPA.

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by jaymw » Mon Apr 25, 2011 1:26 am
AIM GMAT, why do you feel as if you cheated on this question? You were right on the money with your explanations!

Remembering similar questions isn't actually a bad thing as long as you remember that question's reasoning and not its specific content. In this example, it will help you nothing to know that from the wording this sounds like an OG question about hospitals. It will, however, be very helpful to recall what could be inferred from that OG question: namely that when one money source gets drained, another source will have to make up for the decline in money available, and if that does not happen, a certain service cannot be financed properly anymore.

The answer to this question is incredibly hard to prephrase here because there are really a lot of things that could be inferred. So, on such a question it will be most helpful not to waste too much time on prephrasing but to jump right into the answer choices and briefly check whether they make any sense or not.

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by AIM GMAT » Mon Apr 25, 2011 1:33 am
jaymw wrote:AIM GMAT, why do you feel as if you cheated on this question? You were right on the money with your explanations!

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Thanks Jaymw , i will take this in a positive way , and will try to make best possible use of my memeory in analysing patterns and keeping the patterns in mind , i hope that will help in real GMAt as well . What do u suggest ?
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by jaymw » Mon Apr 25, 2011 1:56 am
I think that's a great approach! Takeaways are always the most important point when it comes to reviewing GMAT problems. Of course it is unlikely that on your official GMAT you will see a question THAT close in wording to one you have already done. But then again, you can build on the concepts you have mastered.

The key to solving both of the questions mentioned in this thread lies in examining what will happen financially when one source gets cut. The concept to learn here, however, is much broader. I am not a question writer, but consider something like the following:

A pole-vaulter has a pole of 4 meters. After new regulations, all poles will be only 3.8 meters long. What can be inferred?

A correct answer choice might include that unless pole-vaulters find some other way of gaining altitude (i.e. different technique), they will display worse results in competitions.

Same concept, just entirely different content. Still I'm quite certain that you would have been able to nail this one given your knowledge of the previously mentioned concept.
Last edited by jaymw on Mon Apr 25, 2011 2:06 am, edited 1 time in total.

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by AIM GMAT » Mon Apr 25, 2011 2:02 am
Nicely explained Jaymw , i got your point . Actually GMAT is about analysing problems and devicing out strategy . Or one can also think by stepping into shoes of question writer as also suggested by many CR good books . This also makes it enjoyable :) .

Any good follow up for SC ? I am a non native working hard in that area :( .
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by jaymw » Mon Apr 25, 2011 2:10 am
Nicely explained Jaymw , i got your point . Actually GMAT is about analysing problems and devicing out strategy . Or one can also think by stepping into shoes of question writer as also suggested by many CR good books . This also makes it enjoyable Smile .

Any good follow up for SC ? I am a non native working hard in that area Sad .
I am not a native English speaker, either, so I understand what you might be going through. Personally, I got better at SC with MGMAT's SC book and Knewton's online course. But SC was never really my weak area, so I did not put all too much effort into it. You should definitely look into those resources, though!