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The downturn in the economy last year has prompted many

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Re: Difficult Evaluate the Argument [#permalink] New post 03 Apr 2011, 08:56
The key word is discretionary. Answer c points out the necessities which is inevitable.

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Re: Difficult Evaluate the Argument [#permalink] New post 03 Apr 2011, 18:34
I chose E and feel that B,C, and E are equally good to address the issue.

B- the question talk about the general public savings, so if the savings of the layoffs decrease -> the general savings will decrease.
C- If the prices of necessary goods, or any good, increase, they will likely affect savings
E- If the wage level decrease, the savings will likely be affected

Any input?
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Re: Difficult Evaluate the Argument [#permalink] New post 06 Apr 2011, 05:42
C it is
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Re: Difficult Evaluate the Argument [#permalink] New post 14 Jun 2011, 03:22
its a plain C here without hassles.
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Re: Difficult Evaluate the Argument [#permalink] New post 14 Jun 2011, 14:54
Should be C...talking about the general public
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Re: The downturn in the economy last year has prompted many [#permalink] New post 18 May 2012, 07:58
I missed this one because i did not think of the general population as a whole. Pretty tricky.
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Re: The downturn in the economy last year has prompted many [#permalink] New post 18 May 2012, 22:58
Argument states :
there has been no increase in the amount of money set aside by the general public in savings accounts even though people may have cut on discretionary spending.

To validate this argument what would be most useful to know is :
Whether people have to spend same amount of money that they used to earlier on necessary things.

Option C does precisely that by explaining that prices of necessary commodities have increased in the period since layoffs.
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Re: The downturn in the economy last year has prompted many [#permalink] New post 25 Jun 2012, 05:24
Correct answer is C.

It provides an alternative explanation to why savings rate are not going up, i.e. possibly because prices of food and other necessities are going up, people are using monies that could have been saved for this increased expenditures.

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Re: The downturn in the economy last year has prompted many [#permalink] New post 25 Jun 2012, 05:32
You can rule out B just by reading the stem: The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

Answer B doesn't even address the savings pattern.

Correct answer should be C.
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The downturn in the economy last year has prompted [#permalink] New post 14 Sep 2014, 02:58
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting
in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their
discretionary spending, even if their jobs were secure, in anticipation of coming hard times. However, this prediction
has not come to pass, since there has been no increase in the amount of money set aside by the general public in
savings accounts.

Which one of the following is an assumption on which the argument depends?

a) The economy has not improved in recent months.
b) There has been no increase in the amount of money invested in stocks, certificates of deposit, or other savings
vehicles.
c) Salaries have decreased as a result of the economic downturn.
d) No business sectors have seen growth in recent months.
e) Those who were laid off have been able to find other employment.
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The downturn in the economy last year has prompted many [#permalink] New post 14 Sep 2014, 05:57
Hi Thanks for sharing the question.
My 2 cents.
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs.

Economists predicted:layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times.
(Conc:)this prediction has not come to pass,
(Why?)since there has been no increase in the amount of money set aside by the general public in savings accounts.
Assumption: There is no factor that is eating their saving.

The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

What business sectors were most affected by the layoffs?
How much of their savings, on average, do laid-off employees deplete before finding new employment?
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
What percentage of people laid off have savings accounts?
What has been the average salary during the period since the layoffs?

B Vs C:
How much of their savings, on average, do laid-off employees deplete before finding new employment?
>> Two points why C is better than B: a: average & b:laid-off employees.
Prediction is abt the general public not only abt a specific segment. Second, average doesn't give required info abt peoples' saving behavior. It's just that some ppl's saving depletion was below average and some above.
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
>>Correct .This will answer whether is any factor that is eating their saving.
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The downturn in the economy last year has prompted many   [#permalink] 14 Sep 2014, 05:57
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