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# In 1980, Country A had a per capita gross domestic product

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Senior Manager
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In 1980, Country A had a per capita gross domestic product [#permalink]

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11 Feb 2007, 13:09
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In 1980, Country A had a per capita gross domestic product (GDP) that was $5,000 higher than that of the European Economic Community. By 1990, the difference, when adjusted for inflation, had increased to$6,000. Since a rising per capita GDP indicates a rising average standard of living, the average standard of living in Country A must have risen between 1980 and 1990.
Which one of the following is an assumption on which the argument depends?
(A) Between 1980 and 1990, Country A and the European Economic Community experienced the same percentage increase in population.
(B) Between 1980 and 1990 the average standard of living in the European Economic Community fell.
(C) Some member countries of the European Economic Community had, during the 1980s, a higher average standard of living than Country A.
(D) The per capita GDP of the European Economic Community was not lower by more that $1,000 in 1990 than it had been in 1980. (E) In 1990, no member country of the European Economic Community had a per capita GDP higher than that of Country A. SVP Joined: 08 Nov 2006 Posts: 1559 Location: Ann Arbor Schools: Ross '10 Followers: 13 Kudos [?]: 185 [0], given: 1 [#permalink] ### Show Tags 11 Feb 2007, 13:13 Seems a very straight forward D. Senior Manager Joined: 05 Aug 2005 Posts: 412 Followers: 2 Kudos [?]: 49 [0], given: 0 [#permalink] ### Show Tags 11 Feb 2007, 13:38 NC you are too fast and too accurate. YOu are definitely a 750+ candidate. Your answers to my preivious 2 CRs are proof of that. Your CR reasonings are amazing. Could you elaborate your reasoning for choosing D and for not choosing A? I was stuck between A and D and couldn't understand the logic behind " not more that$1000" in D

thanks
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11 Feb 2007, 14:19
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Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=1999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when false provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.

Last edited by ncp on 11 Feb 2007, 20:03, edited 2 times in total.
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11 Feb 2007, 17:45
Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=2999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when true provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.

I agree. ncprasad, you are killing on verbal. You will do great on the test.

I initially went for A, I completely missed the "per capita" part of the stem. Kicking myself! They want me to miss that.

So D works because if it is true that the EC per capita GDP decreased by more than 1000 and Country A per capita GDP stayed the same, then standard of living in Country A would not have improved and the argument then falls apart, so this must be the assumption.

Is this a correct analysis of D (in my own words)?
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11 Feb 2007, 18:11
buckkitty wrote:
Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=2999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when true provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.

I agree. ncprasad, you are killing on verbal. You will do great on the test.

I initially went for A, I completely missed the "per capita" part of the stem. Kicking myself! They want me to miss that.

So D works because if it is true that the EC per capita GDP decreased by more than 1000 and Country A per capita GDP stayed the same, then standard of living in Country A would not have improved and the argument then falls apart, so this must be the assumption.

Is this a correct analysis of D (in my own words)?

Yep. You are right.
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16 Feb 2007, 22:42
buckkitty wrote:
Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=2999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when true provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.

I agree. ncprasad, you are killing on verbal. You will do great on the test.

I initially went for A, I completely missed the "per capita" part of the stem. Kicking myself! They want me to miss that.

So D works because if it is true that the EC per capita GDP decreased by more than 1000 and Country A per capita GDP stayed the same, then standard of living in Country A would not have improved and the argument then falls apart, so this must be the assumption.

Is this a correct analysis of D (in my own words)?

Yep. You are right.

ncprasad, You are a great problem solver.
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17 Feb 2007, 03:59
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Re: In 1980, Country A had a per capita gross domestic product [#permalink]

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28 Oct 2012, 06:33
Have a query
Since option D reads "not lower than more than a 1000" what if EU per captia GDP fell by exactly 1000, in that case the difference would be 6000 even if Country A's per capita GDP remained constant (Hence there would be no increase in std of living)
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Re: In 1980, Country A had a per capita gross domestic product [#permalink]

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28 Oct 2012, 17:00
The source...........it seems more an inference question rather than an assumption
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Re: In 1980, Country A had a per capita gross domestic product [#permalink]

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01 Apr 2014, 23:51
karun0109 wrote:
Have a query
Since option D reads "not lower than more than a 1000" what if EU per captia GDP fell by exactly 1000, in that case the difference would be 6000 even if Country A's per capita GDP remained constant (Hence there would be no increase in std of living)

When u adjust something for inflation, u increase the value. So Constant GDP is not the issue here. U have to think that GDP of A has gone up.
Since GDP of A has risen and gap also GDP of EU can't go down by more than 1000.

Example= A-9000, EU-4000
Inflation adjustment say - A has become- 9001.
So to make the difference exactly 6000 Eu GDP will be 3001.
Now look at the difference- 4000-3001=999.
There is no way to be more than 1000 lower GDP in case of EU.

Hope it is clear.
Re: In 1980, Country A had a per capita gross domestic product   [#permalink] 01 Apr 2014, 23:51
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