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by rahul.s » Sat Feb 06, 2010 4:14 am
It is a principle of economics that a nation can experience economic growth only when consumer confidence is balanced with a small amount of consumer skepticism.

Which one of the following is an application of the economic principle above?

(A) Any nation in which consumer confidence is balanced with a small amount of consumer skepticism will experience economic growth.

(B) Any nation in which the prevailing attitude of consumers is not skepticism will experience economic growth.

(C) Any nation in which the prevailing attitude of consumers is either exclusively confidence or exclusively skepticism will experience economic growth.

(D) Any nation in which the prevailing attitude of consumers is exclusively confidence will not experience economic growth.

(E) Any nation in which consumer skepticism is balanced with a small amount of consumer confidence will experience economic growth.

OA: D

I opted for A
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by hrishi19884 » Sat Feb 06, 2010 4:31 am
rahul.s wrote:It is a principle of economics that a nation can experience economic growth only when consumer confidence is balanced with a small amount of consumer skepticism.

Which one of the following is an application of the economic principle above?

(A) Any nation in which consumer confidence is balanced with a small amount of consumer skepticism will experience economic growth.

(B) Any nation in which the prevailing attitude of consumers is not skepticism will experience economic growth.

(C) Any nation in which the prevailing attitude of consumers is either exclusively confidence or exclusively skepticism will experience economic growth.

(D) Any nation in which the prevailing attitude of consumers is exclusively confidence will not experience economic growth.

(E) Any nation in which consumer skepticism is balanced with a small amount of consumer confidence will experience economic growth.

OA: D

I opted for A

Ahh nice question brother! Seen after a long long time. Thanks a ton!


A- repeats the question, so it is a principle and not an application of the principle --- Hence ruled out straight away

B- Wrongly states that "Not skepticism" will help in economic growth. Hence ruled out straight away.

C- "Exclusively" means "the only dominance". So the statements says that "only confidence" or only skepticism" will help in economic growth" -- which is wrong according to economic principle" -ruled out.

D- Exclusive confidence" or "only confidence" will not help in economic growth. Perfect, we also need some skepticism for economic growth. Hence this is correct option and is application of the principle.

E- "small amount of consumer confidence " is wrong - its is the small amount of consumer skepticism" ... Hence ruled out
Hrishi

"As you sow, so shall you reap"
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by thephoenix » Sat Feb 06, 2010 4:33 am
this one is a type of formal logic
if x then y
if no y then no x

x=economic growth
y=consumer confidence is balanced with a small amount of consumer skepticism.

a)if Y then x .false
b)if not Y then x......false
c)irrelevent..false
d)if not Y then Not x...true
e)if y then x,.......false

hence D
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by rahul.s » Sat Feb 06, 2010 4:35 am
hrishi19884 wrote:A- repeats the question, so it is a principle and not an application of the principle --- Hence ruled out straight away
damn! i missed that!
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by komal » Sat Feb 06, 2010 9:41 am
It is a principle of economics that a nation can experience economic growth only when consumer confidence is balanced with a small amount of consumer skepticism.

Which one of the following is an application of the economic principle above?

Economic growth = Consumer confidence + small amount of consumer skepticism

(A) Any nation in which consumer confidence is balanced with a small amount of consumer skepticism will experience economic growth.
Incorrect : This is same as stimulus. Eliminated.

(B) Any nation in which the prevailing attitude of consumers is not skepticism will experience economic growth.
Incorrect : Negates part meaning of the stimulus.

(C) Any nation in which the prevailing attitude of consumers is either exclusively confidence or exclusively skepticism will experience economic growth.
Incorrect : It has to be THIS plus THAT and certainly not THIS or THAT.

(D) Any nation in which the prevailing attitude of consumers is exclusively confidence will not experience economic growth.
Correct : Correctly paraphrases what is stated in the stimulus above.

(E) Any nation in which consumer skepticism is balanced with a small amount of consumer confidence will experience economic growth.
Incorrect : This is opposite of what is stated in the stimulus.

Hope this helps : )
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by gmatmachoman » Sat Feb 06, 2010 9:58 am
thephoenix wrote:this one is a type of formal logic
if x then y
if no y then no x

x=economic growth
y=consumer confidence is balanced with a small amount of consumer skepticism.

a)if Y then x .false
b)if not Y then x......false
c)irrelevent..false
d)if not Y then Not x...true
e)if y then x,.......false

hence D
Formal logic based CR is never ever tested on GMAT!!
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by sumanr84 » Sat Feb 06, 2010 10:50 am
I agree with gmatmachoman.
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