Chief Economist: Usually, the release of economic data about : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 23 Jan 2017, 06:18

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Chief Economist: Usually, the release of economic data about

Author Message
TAGS:

Hide Tags

Manager
Joined: 29 Apr 2012
Posts: 104
Location: United States
GMAT Date: 10-22-2012
Followers: 0

Kudos [?]: 55 [1] , given: 47

Show Tags

09 Oct 2012, 23:23
1
KUDOS
00:00

Difficulty:

(N/A)

Question Stats:

91% (02:26) correct 9% (02:17) wrong based on 95 sessions

HideShow timer Statistics

Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?
• The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
• The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
• The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
• The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
• The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.
If you have any questions
New!
 Economist GMAT Tutor Discount Codes Veritas Prep GMAT Discount Codes Optimus Prep Discount Codes
Manager
Status: faciendo quod indiget fieri
Joined: 13 Mar 2012
Posts: 88
Followers: 0

Kudos [?]: 33 [1] , given: 4

Show Tags

10 Oct 2012, 02:16
1
KUDOS
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?

• The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
INCORRECT.The second part is not the conclusion, it is a reasoning
• The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
CORRECT. first is a pattern that will not hold in this case. Second is the reason why the first pattern will not hold. The reason is that money will be moved form capital markets to debt structures.
• The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
First is NOT a generalization. It is an observation
• The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
Second is not a prediction, but a factual statement
• The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.
First is a pattern that WILL NOT be repeated. Therefore INCORRECT
Senior Manager
Status: Prevent and prepare. Not repent and repair!!
Joined: 13 Feb 2010
Posts: 274
Location: India
Concentration: Technology, General Management
GPA: 3.75
WE: Sales (Telecommunications)
Followers: 9

Kudos [?]: 89 [0], given: 282

Show Tags

10 Oct 2012, 02:27
To me its E. It clearly states what the economists thinks initially. the second boldface contradicts that.
_________________

I've failed over and over and over again in my life and that is why I succeed--Michael Jordan
Kudos drives a person to better himself every single time. So Pls give it generously
Wont give up till i hit a 700+

Intern
Joined: 12 Jun 2012
Posts: 42
Followers: 1

Kudos [?]: 31 [0], given: 28

Show Tags

10 Oct 2012, 05:25
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities
. In the above argument, the statements in boldface play which of
the following roles?

A) The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
B) The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
C) The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
D) The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
E) The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.

First sentence is an example of usual observed behaviour
Second sentence is the reason why this behaviour will not work

A) Correct. The second is definitely a conclusion, the first is defintely a consideration that the economist acknowledges will usually happen
B) Incorrect. First is correct, but second isn't quite right.
C)Incorrect. The second isn't a consequence from the generalisation, it is a conflicting view.
D)Incorrect. First and second sentences in the parapgraph are contradictory, D assumes they are complimentary
E)incorrect, first is a parrern of cause and effect but the economist DOES NOT predict is will be the case.
_________________

BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 912
Location: Viet Nam
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 73

Kudos [?]: 603 [1] , given: 44

Show Tags

10 Oct 2012, 07:49
1
KUDOS
Choice B is the correct one. Actually, I confuse btw choice B and choice E. However, the cause and effect in the first bold is not hold/ repeated in the case at issue. Also, the second part, as choice E said, is wrong. The second part support the prediction of the author.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Director
Affiliations: SAE
Joined: 11 Jul 2012
Posts: 510
Location: India
Concentration: Strategy, Social Entrepreneurship
GMAT 1: 710 Q49 V37
GPA: 3.5
WE: Project Management (Energy and Utilities)
Followers: 43

Kudos [?]: 259 [0], given: 269

Show Tags

11 Oct 2012, 01:04
+1B

BF1 – Cause and effect
Case at Issue - this quarter, the release of data about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices
BF2 – Supports Case at Issue

Perfectly presented in option B

_________________

First Attempt 710 - http://gmatclub.com/forum/first-attempt-141273.html

Manager
Status: exam is close ... dont know if i ll hit that number
Joined: 06 Jun 2011
Posts: 206
Location: India
GMAT Date: 10-09-2012
GPA: 3.2
Followers: 2

Kudos [?]: 22 [0], given: 1

Show Tags

11 Oct 2012, 07:56
usage of usually in the first sentence reaches to the option B
This usage implies that the author will be trying to refute it in the following argument...

Please correct me if i am wrong..
_________________

just one more month for exam...

BSchool Forum Moderator
Joined: 23 Jul 2010
Posts: 574
GPA: 3.4
WE: General Management (Non-Profit and Government)
Followers: 106

Kudos [?]: 840 [1] , given: 319

Show Tags

12 Nov 2013, 00:20
1
KUDOS
Bumping for review and further discussion

_________________

General Mistakes to Avoid on the GMAT
TOP 10 articles on Time Management on the GMAT
Thanks = Kudos. Kudos are appreciated

Rules for posting on the verbal forum

Manager
Joined: 23 Apr 2012
Posts: 55
GMAT 1: 690 Q49 V34
Followers: 1

Kudos [?]: 19 [0], given: 2

Show Tags

13 Nov 2013, 11:16
E it should be

Below is why i think B is incorrect.

B: • The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
The economics never PREDICTS in the first boldface that the prediction will not hold. He only mentions the general phenomenon- how it usually happens.

If however, "Usually" were in bold, then B would be correct .
Intern
Joined: 12 Oct 2013
Posts: 16
Followers: 0

Kudos [?]: 7 [0], given: 2

Show Tags

13 Nov 2013, 19:13
I think B as well - many seem to think it is either this, or E.

Quote:
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices.
However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?

Let's break it down:
1st sentence: Claim
2nd sentence: Conclusion (However = the former sentence may not be the case = change in support).
3rd: Premise

Quote:
E. The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.

Quote:
B. The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.

E is a pretty strong candidate for the right answer, except that the economist is not just acknowledging the circumstance in which the pattern would not hold, she gives an argument for why it would not hold, thereby expressing her belief in what she thinks will happen. Similarly, E states that the economist predicts that the pattern would be repeated, which is not the case. She just states that usually this is the case; then, she goes ahead and states her prediction.

Thus, B more accurately captures the economist's argument.

surbhi87 wrote:
B: • The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
The economics never PREDICTS in the first boldface that the prediction will not hold. He only mentions the general phenomenon- how it usually happens. If however, "Usually" were in bold, then B would be correct .

The answer choice is not saying that the first bold-faced statement is the economist predicting -- it is saying that the first bolded-faced statement is one she then ultimately makes a prediction abuot. Although, I definitely understand the confusion!

mohan514 wrote:
usage of usually in the first sentence reaches to the option B
This usage implies that the author will be trying to refute it in the following argument...

Please correct me if i am wrong..

I don't think the word "usually" really has any bearing on whether or not it will be refuted -- the word "however" is more of an indication that the previous statement would be refuted. "Usually" in this case just means "typically".
(Does anybody else think that "usually" is weirdly spelled word... ? Stare at it for a while and you'll see... )

Arthur1000 wrote:
First sentence is an example of usual observed behaviour
Second sentence is the reason why this behaviour will not work

A) Correct. The second is definitely a conclusion, the first is defintely a consideration that the economist acknowledges will usually happen
B) Incorrect. First is correct, but second isn't quite right.
C)Incorrect. The second isn't a consequence from the generalisation, it is a conflicting view.
D)Incorrect. First and second sentences in the parapgraph are contradictory, D assumes they are complimentary
E)incorrect, first is a parrern of cause and effect but the economist DOES NOT predict is will be the case.

You're totally correct that the first sentence is an observation of something usual! However, the second sentence is not the reason -- it is the conclusion, which is opposite of the previous claim. Notice that the last bolded-sentence supports the second sentence -- whichever statement is most supported by the argument is usually the conclusion.
Intern
Joined: 05 Dec 2013
Posts: 16
Location: United States
GPA: 3.5
WE: Brand Management (Consulting)
Followers: 0

Kudos [?]: 5 [0], given: 18

Show Tags

04 Feb 2014, 03:24
why most of these questions under sub 600 level,running without OA?..leading to contrasting views and in the end,doesn't serve the purpose
Re: Chief Economist: Usually, the release of economic data about   [#permalink] 04 Feb 2014, 03:24
Similar topics Replies Last post
Similar
Topics:
Boldface Revision: Chief Economist: Usually, the release of economic 3 20 Mar 2015, 22:58
11 Chief Economist: Usually, the release of economic data about 8 07 May 2013, 12:24
3 Chief Economist: Usually, the release of economic data about 4 05 May 2012, 21:52
Political theorist: The chief foundations of all governments 3 21 Mar 2008, 12:31
But the chief cause of that instability in the 1980s is 6 20 Mar 2007, 21:42
Display posts from previous: Sort by