Find all School-related info fast with the new School-Specific MBA Forum

It is currently 31 Aug 2016, 09:56
GMAT Club Tests

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Consumer and Producer Interest

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Joined: 03 Jul 2013
Posts: 31
Location: United States
Concentration: Finance, General Management
Schools: Mannheim '15
GPA: 3
WE: Human Resources (Consulting)
Followers: 0

Kudos [?]: 86 [0], given: 19

Consumer and Producer Interest [#permalink]

Show Tags

New post 25 Aug 2013, 10:58
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

53% (02:45) correct 47% (01:23) wrong based on 224 sessions

HideShow timer Statistics

Economist: In the interaction between producers and consumers, the only obligation that all parties have to act in the best interests of their own side. And distribution of information about product defects is in the best interests of the consumer, So consumers are always obligated to report product defects they discover, while producers are never obligated to reveal them.

Which one of the following is an assumption required by the economist's argument?

A. It is never in the best interests of producers for a producer to reveal a product defect.
B. No one expects producers to act in a manner counter to their own best interests.
C. Any product defect is likely to be discovered by consumer
D. A product defect is more likely to be discovered by a consumer than by a producer
E. The best interests of consumers never coincide with the best interests of producers

Help Please !!
[Reveal] Spoiler: OA
Economist GMAT Tutor Discount CodesMagoosh Discount CodesManhattan GMAT Discount Codes
4 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Joined: 16 Jun 2012
Posts: 1153
Location: United States
Followers: 237

Kudos [?]: 2581 [4] , given: 123

Premium Member
Re: Consumer and Producer Interest [#permalink]

Show Tags

New post 25 Aug 2013, 11:20
4
This post received
KUDOS
ANALYZE THE STIMULUS:

Fact: In the interaction between producers and consumers, the only obligation that all parties have to act in the best interests of their own side.
Fact: And distribution of information about product defects is in the best interests of the consumer,
Conclusion: consumers are always obligated to report product defects they discover, while producers are never obligated to reveal them.

Determine the conclusion correctly is KEY to solve assumption questions.

Which one of the following is an assumption required by the economist's argument?

ANALYZE EACH ANSWER:

A. It is never in the best interests of producers for a producer to reveal a product defect.
Correct. The conclusion “producers are never obligated to reveal product defects” is ONLY true if revealing a product defect is NOT the best interests of producers. If you are not sure, let negate the assumption, the conclusion is broken immediately.

B. No one expects producers to act in a manner counter to their own best interests.
Wrong. The argument just talks about producers’ best interest. We have NO information about “their manner counter to their best interests”. In addition, if you negate B: Every one expects producers to act in a manner counter to their own best interests. Does it help to explain why consumer are obligated to reveal product defect, while producers are never do so? Nope. the negated B does not help. Thus, B is not an assumption.

C. Any product defect is likely to be discovered by consumer
Wrong. Does not help to explain why producers are never obligated to reveal product defect.

D. A product defect is more likely to be discovered by a consumer than by a producer
Wrong. Out of scope. The argument does not compare the abilities of consumers and producers in discovering product defect.

E. The best interests of consumers never coincide with the best interests of producers
Wrong. VERY TEMPTING. The argument says consumers are obligated to reveal product defect, while producers are not <== The argument just focuses on a particular topic - product defect. The two groups just do not have same interest in revealing product defect. But the argument does NOT say the two groups ALWAYS have different interests /opposite interests. E is wrong because it generalizes the scope of the argument.

TAKEAWAY:
Conclusion is KEY in assumption questions.
Because Assumption questions belong to "PROVE family" --> just focus on information in the stimulus, do NOT generalize.



Hope it helps.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 01 Oct 2013
Posts: 9324
Followers: 808

Kudos [?]: 165 [0], given: 0

Premium Member
Re: Consumer and Producer Interest [#permalink]

Show Tags

New post 16 Feb 2016, 21:59
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Manager
Manager
avatar
Joined: 25 Dec 2012
Posts: 136
Followers: 1

Kudos [?]: 10 [0], given: 148

Re: Consumer and Producer Interest [#permalink]

Show Tags

New post 17 Feb 2016, 05:06
pqhai wrote:
ANALYZE THE STIMULUS:

Fact: In the interaction between producers and consumers, the only obligation that all parties have to act in the best interests of their own side.
Fact: And distribution of information about product defects is in the best interests of the consumer,
Conclusion: consumers are always obligated to report product defects they discover, while producers are never obligated to reveal them.

Determine the conclusion correctly is KEY to solve assumption questions.

Which one of the following is an assumption required by the economist's argument?

ANALYZE EACH ANSWER:

A. It is never in the best interests of producers for a producer to reveal a product defect.
Correct. The conclusion “producers are never obligated to reveal product defects” is ONLY true if revealing a product defect is NOT the best interests of producers. If you are not sure, let negate the assumption, the conclusion is broken immediately.

B. No one expects producers to act in a manner counter to their own best interests.
Wrong. The argument just talks about producers’ best interest. We have NO information about “their manner counter to their best interests”. In addition, if you negate B: Every one expects producers to act in a manner counter to their own best interests. Does it help to explain why consumer are obligated to reveal product defect, while producers are never do so? Nope. the negated B does not help. Thus, B is not an assumption.

C. Any product defect is likely to be discovered by consumer
Wrong. Does not help to explain why producers are never obligated to reveal product defect.

D. A product defect is more likely to be discovered by a consumer than by a producer
Wrong. Out of scope. The argument does not compare the abilities of consumers and producers in discovering product defect.

E. The best interests of consumers never coincide with the best interests of producers
Wrong. VERY TEMPTING. The argument says consumers are obligated to reveal product defect, while producers are not <== The argument just focuses on a particular topic - product defect. The two groups just do not have same interest in revealing product defect. But the argument does NOT say the two groups ALWAYS have different interests /opposite interests. E is wrong because it generalizes the scope of the argument.

TAKEAWAY:
Conclusion is KEY in assumption questions.
Because Assumption questions belong to "PROVE family" --> just focus on information in the stimulus, do NOT generalize.



Hope it helps.


In option A

A. It is never in the best interests of producers for a producer to reveal a product defect.
Correct. The conclusion “producers are never obligated to reveal product defects” is ONLY true if revealing a product defect is NOT the best interests of producers. If you are not sure, let negate the assumption, the conclusion is broken immediately.

The answer choice A and the argument “producers are never obligated to reveal product defects” mentioned, both reveals the same information. How this can be assumption. Hence i marked E based on the logic stated above. Kindly clarify me where i m going wrong. Thanks for your help.
Re: Consumer and Producer Interest   [#permalink] 17 Feb 2016, 05:06
    Similar topics Author Replies Last post
Similar
Topics:
1 Interested in growing avocados, the owners of a vast produce farm are Harley1980 2 27 Aug 2015, 03:25
1 Experts publish their posts in the topic The interest of consumers in Company A's product is directly affected reto 3 12 Jul 2015, 07:32
1 Consumer income reports produced by the govern- ment ajit257 11 15 Dec 2010, 17:38
1 Experts publish their posts in the topic Consumer income reports produced by the government vscid 9 27 Jan 2008, 16:35
Consumer income reports produced by the government AK47 6 18 Jan 2007, 20:38
Display posts from previous: Sort by

Consumer and Producer Interest

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.