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The media claim that the economy is entering a phase of

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The media claim that the economy is entering a phase of [#permalink] New post 16 Jul 2006, 19:16
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The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. Their analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months and bankruptcy lawyers report that they are busier than they have been in years.

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

A. Unemployment rates are not useful indicators of growth and prosperity.

B. Economic growth cannot be measured in terms of productivity.

C. Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D. There has not been an increase in the number of bankruptcy lawyers.

E. The media often misrepresent the current state of economic affairs.

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Re: The media claim that the economy is entering a phase of grow [#permalink] New post 03 Mar 2013, 11:18
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mun23 wrote:
The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. This analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months, and bankruptcy lawyers report that they are busier than they have been in years.

Which of the following is an assumption on which the argument depends?
(A)Unemployment rates are not useful indicators of growth and prosperity.
(B)Economic growth cannot be measured in terms of productivity.
(C)Legislation has not been recently passed to make legal bankruptcy easier to obtain.
(D)There has not been an increase in the number of bankruptcy lawyers.
(E)The media often misrepresent the current state of economic affairs.

Need explanation.................. ..


Hi mun23,

Premises: Media claims economy is entering a phase of growth and prosperity --> lower unemployment rates and increased productivity

Conclusion: The analysis that economy is entering a phase of growth and prosperity is false.

Reason given for conclusion: High bankruptcy rates


This is again a cause and effect reasoning similar to the question in the post below.

Cause: High number of bankruptcies
Effect: Economy is not growing


surveys-consistently-show-that-the-best-selling-ice-cream-148675.html#p1191167

As the reason for the conclusion is the higher number of bankruptcies, the answer choice which does not provide information on bankruptcies is likely to be incorrect

(A)Unemployment rates are not useful indicators of growth and prosperity.

Even if unemployment rates are not useful indicators of growth and prosperity, there could be other indicators and this may make the claim by the media true. i.e. this choice is not the one that "must be true" for the conclusion to be true.


(B)Economic growth cannot be measured in terms of productivity.

Again this choice does not have to be true for the media's claim to be false. Productivity is just an indicator, the economy may not be growing or may be growing as there could be other indicators for economic growth. Moreover, (B) also does not mention anything about bankruptcies

(C)Legislation has not been recently passed to make legal bankruptcy easier to obtain.

This is the assumption that we have to make for our conclusion to be true. If bankruptcies are being filed because of a recent change in legislation then the reason to believe that the claim by the media is false becomes irrelevant. So, (C) has to be true for the conclusion to be true which states that the claim of media is false. Note that this choice is making the questionable claim by the author regarding bankruptcies a legitimate one. This is an excellent example of a choice which eliminates an alternative explanation of the evidence.

(D)There has not been an increase in the number of bankruptcy lawyers.

Even if there is an increase in the number of lawyers, this choice does not give us any information about the bankruptcies which the stimulus relates to the falsification of media's claims.

(E)The media often misrepresent the current state of economic affairs.

If media often misrepresent the current state of economic affairs then our conclusion "could be" true, but not necessarily. The correct assumption choice will make the conclusion unequivocally true.

Hope this helps,

Vercules
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Re: The media claim that the economy is entering a phase of [#permalink] New post 15 Apr 2013, 20:24
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Re: The media claim that the economy is entering a phase of [#permalink] New post 06 Nov 2013, 07:31
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Re: The media claim that the economy is entering a phase of [#permalink] New post 22 Nov 2014, 06:52
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The media claim that the economy is entering a phase of [#permalink] New post 14 Nov 2015, 08:52
Some claimed that better economic growth rate because less unemployment rate. Author opposed. Author indirectly pointed out that the economic growth is not good or bad because increased bankruptcy & lawyers are busy. So the author must assume that nothing but poor economic growth caused the more bankruptcy filing & C exactly stated the assumption.

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Re: The media claim that the economy is entering a phase of [#permalink] New post 24 Nov 2015, 08:26
u2lover wrote:
It is D, otherwise the argument doesn't hold

A, B and E seem like unsupported conclusions

C there is no indication of such a thing


This was a good q.
Conclusion is that media is wrong. Why? Coz. bankruptcy rates are high. - Now, this doesn't mean that media's two methods were wrong. They might be right. But, the bankruptcy rates are high, so economy is in bad shape.

A - Didn't suggest that two were bad indicators.
B - Same as A.
C - Keep it.
D - Opposite of the premise. - Eliminate.
E - Irrelevant.

Consider C. If legislation has not been recently passed to make legal bankruptcy easier to obtain, it means that the it has been easy for long time to make legal b/k. So, the increased nos. of b/k are legit. If, the legislation was passed recently, means the increase in nos. were coz, now it is easier to make legal b/k so people are making it now. So maybe they were b/k very long back, but declared b/k only now. So, can't say whether the economy is in trouble recently.
Re: The media claim that the economy is entering a phase of   [#permalink] 24 Nov 2015, 08:26

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