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

 It is currently 25 Aug 2016, 06:12

### 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

# 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
Joined: 17 Dec 2008
Posts: 177
Followers: 2

Kudos [?]: 110 [0], given: 0

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

### Show Tags

23 Feb 2009, 07:55
00:00

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.
VP
Joined: 05 Jul 2008
Posts: 1431
Followers: 40

Kudos [?]: 328 [1] , given: 1

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

### Show Tags

23 Feb 2009, 08:46
1
KUDOS
Got an E as well, C is a trap as it talks about repair costs and not costs incurred because of injury
Intern
Joined: 15 Dec 2008
Posts: 37
Followers: 1

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

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

### Show Tags

23 Feb 2009, 08:44
I would go with E because that seems to be the only possible answer here...
VP
Joined: 18 May 2008
Posts: 1287
Followers: 14

Kudos [?]: 352 [0], given: 0

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

### Show Tags

23 Feb 2009, 10:24
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
Joined: 01 Aug 2008
Posts: 769
Followers: 4

Kudos [?]: 508 [0], given: 99

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

### Show Tags

23 Feb 2009, 11:47
IMO E.
Director
Joined: 25 Oct 2006
Posts: 648
Followers: 10

Kudos [?]: 424 [0], given: 6

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

### Show Tags

23 Feb 2009, 11:55
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
Joined: 02 Nov 2008
Posts: 282
Followers: 1

Kudos [?]: 87 [0], given: 2

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

### Show Tags

24 Feb 2009, 23:07
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
Joined: 01 Dec 2008
Posts: 65
Followers: 0

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

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

### Show Tags

25 Feb 2009, 02:23
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
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

27 Feb 2009, 19:46
As explained above, E is the best answer.
Manager
Joined: 21 Aug 2012
Posts: 210
Followers: 0

Kudos [?]: 25 [0], given: 348

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

### Show Tags

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

Kudos [?]: 29 [0], given: 2

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

### Show Tags

06 Feb 2013, 13:15
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
Joined: 21 Aug 2012
Posts: 210
Followers: 0

Kudos [?]: 25 [0], given: 348

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

### Show Tags

13 Feb 2013, 05:30
Thanks for the explanation , Dinesh ..
Re: In 1960, 10 percent of every dollar paid in automobile   [#permalink] 13 Feb 2013, 05:30
Similar topics Replies Last post
Similar
Topics:
1 In 1992, 5 percent of every dollar paid in tax went to 8 25 Sep 2010, 02:24
1 In 1992, 5 percent of every dollar paid in tax went to 10 18 Aug 2009, 09:04
3 In 1960, 10 percent of every dollar paid in automobile 7 20 Jan 2008, 08:23
Surveys show that every year only 10 percent of cigarette 4 30 Jun 2007, 09:37
Surveys show that every year only 10 percent of cigarette 6 02 Jan 2007, 12:01
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

 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®.