Another Difficult GmatPrep question...

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The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.

The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

A] What business sectors were most affected by the layoffs.

B] How much of their savings, on average, do laid - off employees deplete before finding new employment?

C] What has been the percent increase in the cost of necessities such as food, housing and utilities during the period since the layoffs?

D] What percentage of people laid off have savings accounts?

E] What has been the average salary during the period since the layoffs?[spoiler]


The correct answer is C.[/spoiler]

A bit of a tricky question to understand...

Experts please help...

[GmatKiss]

The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.

The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

A] What business sectors were most affected by the layoffs.

B] How much of their savings, on average, do laid - off employees deplete before finding new employment?

C] What has been the percent increase in the cost of necessities such as food, housing and utilities during the period since the layoffs? - works for the blue part! - Perfect
D] What percentage of people laid off have savings accounts?

E] What has been the average salary during the period since the layoffs?[spoiler]


The correct answer is C.[/spoiler]

A bit of a tricky question to understand...

Experts please help...

[Gaurav 2013-fall]

If there has been an increase in the cost of basic necessities, people will not be able to save money even if they want.

[dhonu121]

Not sure how D is ruled out here.
If the average salary during the period in question has decreased, even then people would not be able to make the savings as seen in the paragraph.
Please explain.