In 1960, 10 percent of every dollar paid in automobile : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

It is currently 10 Dec 2016, 07:11
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.

Close

Request Expert Reply

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In 1960, 10 percent of every dollar paid in automobile

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

Hide Tags

Manager
Manager
User avatar
Joined: 17 Dec 2008
Posts: 177
Followers: 2

Kudos [?]: 121 [0], given: 0

In 1960, 10 percent of every dollar paid in automobile [#permalink]

Show Tags

New post 23 Feb 2009, 06:55
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (01:54) correct 0% (00:00) wrong based on 22 sessions

HideShow timer Statistics

In 1960, 10 percent of every dollar paid in automobile insurance premiums went to pay costs arising from injuries incurred in car accidents. In 1990, 50 percent of every dollar paid in automobile insurance premiums went toward such costs, despite the fact that cars were much safer in 1990 than in 1960.

Which of the following, if true, best explains the discrepancy outlined above?

(A) There were fewer accidents in 1990 than in 1960.
(B) On average, people drove more slowly in 1990 than in 1960.
(C) Cars grew increasingly more expensive to repair over the period in question.
(D) The price of insurance increased more rapidly than the rate of inflation between 1960 and 1990.
(E) Health-care costs rose sharply between 1960 and 1990.
Request Expert Reply
If you have any questions
you can ask an expert
New!
Intern
Intern
avatar
Joined: 15 Dec 2008
Posts: 37
Followers: 1

Kudos [?]: 17 [0], given: 0

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 23 Feb 2009, 07:44
I would go with E because that seems to be the only possible answer here...
1 KUDOS received
VP
VP
User avatar
Joined: 05 Jul 2008
Posts: 1430
Followers: 39

Kudos [?]: 353 [1] , given: 1

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 23 Feb 2009, 07:46
1
This post received
KUDOS
Got an E as well, C is a trap as it talks about repair costs and not costs incurred because of injury
VP
VP
User avatar
Joined: 18 May 2008
Posts: 1286
Followers: 15

Kudos [?]: 400 [0], given: 0

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 23 Feb 2009, 09:24
Hmmmm Gud question.
The main point in this question is that we have to pay attention to the costs arising from injuries ocurred in car accidents. C may look tempting at first but we r not bothered abt costs arising out of car repairs. Among all choices , E is the best.

ConkergMat wrote:
In 1960, 10 percent of every dollar paid in automobile insurance premiums went to pay costs arising from injuries incurred in car accidents. In 1990, 50 percent of every dollar paid in automobile insurance premiums went toward such costs, despite the fact that cars were much safer in 1990 than in 1960.

Which of the following, if true, best explains the discrepancy outlined above?

(A) There were fewer accidents in 1990 than in 1960.
(B) On average, people drove more slowly in 1990 than in 1960.
(C) Cars grew increasingly more expensive to repair over the period in question.
(D) The price of insurance increased more rapidly than the rate of inflation between 1960 and 1990.
(E) Health-care costs rose sharply between 1960 and 1990.
Director
Director
avatar
Joined: 01 Aug 2008
Posts: 768
Followers: 4

Kudos [?]: 611 [0], given: 99

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 23 Feb 2009, 10:47
IMO E.
Director
Director
User avatar
Joined: 25 Oct 2006
Posts: 648
Followers: 13

Kudos [?]: 500 [0], given: 6

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 23 Feb 2009, 10:55
Costs increase toward automobile injuries ----> Health cost increased.

IMO E
_________________

If You're Not Living On The Edge, You're Taking Up Too Much Space

Senior Manager
Senior Manager
avatar
Joined: 02 Nov 2008
Posts: 282
Followers: 1

Kudos [?]: 94 [0], given: 2

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 24 Feb 2009, 22:07
icandy wrote:
Got an E as well, C is a trap as it talks about repair costs and not costs incurred because of injury


Yes, C is indeed a trap. Agree with E.
Manager
Manager
avatar
Joined: 01 Dec 2008
Posts: 65
Followers: 0

Kudos [?]: 3 [0], given: 2

GMAT ToolKit User
Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 25 Feb 2009, 01:23
E is definitely the answer.

The automobile insurance is used to cover the medical bills from injuries that are casued due to accidents, and E is the only option tat explains the stimulus
Intern
Intern
avatar
Joined: 22 Jan 2009
Posts: 6
Schools: rowan university
Followers: 0

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

Re: CR- paradox: Cost from injuries [#permalink]

Show Tags

New post 27 Feb 2009, 18:46
As explained above, E is the best answer.
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 210
Concentration: General Management, Operations
Schools: HBS '19 (S)
GMAT 1: 740 Q49 V42
Followers: 0

Kudos [?]: 29 [0], given: 349

Re: In 1960, 10 percent of every dollar paid in automobile [#permalink]

Show Tags

New post 06 Feb 2013, 05:19
Can anyone explain what is wrong with D?
Intern
Intern
avatar
Joined: 15 Aug 2012
Posts: 47
Followers: 1

Kudos [?]: 30 [0], given: 2

Re: In 1960, 10 percent of every dollar paid in automobile [#permalink]

Show Tags

New post 06 Feb 2013, 12:15
roopika2990 wrote:
Can anyone explain what is wrong with D?


The premise mentioned in the question is that in 1960, 10% of every dollar paid (.1 cents per dollar) is paid towards injuries occurring from accidents, the same cost rose to 50% of every dollar paid (.5 cents per dollar).

the question stem asks us to resolve this discrepancy that what could be the possible reason for the increase from 0.1 to 0.5 per dollar even though the cars were safer.

Option D talks about increase in Insurance price and nothing about the cost of injuries, so this option is not in scope of passage.
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 210
Concentration: General Management, Operations
Schools: HBS '19 (S)
GMAT 1: 740 Q49 V42
Followers: 0

Kudos [?]: 29 [0], given: 349

Re: In 1960, 10 percent of every dollar paid in automobile [#permalink]

Show Tags

New post 13 Feb 2013, 04:30
Thanks for the explanation , Dinesh .. :)
Re: In 1960, 10 percent of every dollar paid in automobile   [#permalink] 13 Feb 2013, 04:30
    Similar topics Author Replies Last post
Similar
Topics:
1 In 1992, 5 percent of every dollar paid in tax went to john85 8 25 Sep 2010, 01:24
1 In 1992, 5 percent of every dollar paid in tax went to crejoc 10 18 Aug 2009, 08:04
4 In 1960, 10 percent of every dollar paid in automobile seongbae 7 20 Jan 2008, 07:23
Surveys show that every year only 10 percent of cigarette vineetgupta 4 30 Jun 2007, 08:37
Surveys show that every year only 10 percent of cigarette ncp 6 02 Jan 2007, 11:01
Display posts from previous: Sort by

In 1960, 10 percent of every dollar paid in automobile

  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®.