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The media claim that the economy is entering a phase of

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CEO
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The media claim that the economy is entering a phase of [#permalink]  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.
[Reveal] Spoiler: OA

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[#permalink]  16 Jul 2006, 19:19
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
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[#permalink]  16 Jul 2006, 23:57
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

Seems like the central argument here is about the current state of the economy. Even if D were assumed, it wouldnt have much bearing.

(C) makes an assumption within scope: if bankruptcy were easier to obtain, people would be defaulting left and right from overspending, running up CCs, etc, because the changes in the law would make it easier to do so. Basically, complicated bankruptcy filings=less bankruptcies=stable economy. This seems to strengthen the authors claim.

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[#permalink]  17 Jul 2006, 00:49
Will go with C.

The argument is that since the number of people filing for bankruptcy has increased and bankruptcy lawyers are extremely busy, the economists claim that economy is prospering is false.

The author has to assume that somehow it is not any easier for people to file for bankruptcy.
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[#permalink]  17 Jul 2006, 00:54
Picking C.
Was a really tough one for me.
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[#permalink]  17 Jul 2006, 00:57
Down to D and C.

D is the best choice as it suggests the increasing number of bankruptcies filed has nothing to do with more lawyers sending in applications.

C is not very strong as it suggests that the people have already been made a bankrupt while in the passage, we're told it's still in the process of being filed.

D for me.
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[#permalink]  17 Jul 2006, 02:28
I would go for E seems the bost plausible
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[#permalink]  17 Jul 2006, 04:26
My answer is E
Explaination:
Fact:
- Media claim the economy is growing because decreased unemployment and increased productivity
- The number of people filing for bankruptcy increased and bankruptcy lawyers report that they are busier than they have been in years
Conclusion:
- The economy is not growing

The conclusion is right if one of two fact is wrong. So only claim of media is wrong. Answer is E.

Look forward to answer
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[#permalink]  17 Jul 2006, 17:56
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OA is C

OE:
The conclusion of the argument is that the media are wrong in saying that the economy is entering a phase of growth and prosperity. The basis for that claim is that the number of people filing for bankruptcy has increased every month for the last six months and that bankruptcy lawyers are busier than they have been in years. In order for this argument to be valid, however, the author has to assume that the increase in the number of bankruptcies is a result of the state of the economy and not the result of something unrelated.

(A) This does not have to be true for the claim that the media are wrong about the economy to hold. It is possible that unemployment rates are useful indicators of growth and prosperity and that media is still wrong about the economy (i.e. if there are other indicators that show problems in other areas).

(B) This does not have to be true for the claim that the media are wrong about the economy to hold. It is possible that productivity is a good measure of economic growth and that media is still wrong about the economy (i.e. if there are other indicators that show problems in other areas).

(C) CORRECT. This has to be true for the claim that the media are wrong about the economy to hold. If legislation has recently been passed that makes it easier to obtain bankruptcy, this would explain away the counterevidence to the media's argument. The increased number of bankruptcies could have been the result of the easier process rather than of a poor economy.

(D) This does not have to be true for the claim that the media are wrong about the economy to hold. An increase in the number of bankruptcy lawyers would not explain the increase in the number of bankruptcy filings.

(E) This does not have to be true for the claim that the media are wrong about the economy to hold. Even if the media did not often misrepresent the current state of economic affairs, the argument that the media are wrong might still hold.

The correct answer is C.
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The media claim that the economy is entering a phase of [#permalink]  01 Jul 2007, 08:08
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.
F) The media often misrepresent the current state of economic affairs.
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[#permalink]  01 Jul 2007, 10:05
C it is...this eliminates another reason for the increase in work of bankruptcy lawyers.
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[#permalink]  02 Jul 2007, 19:33
vote for A. Negating A(unemplyment rates are useful indicators of growth and prosperity) weakens the conclusion.

A it is
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[#permalink]  02 Jul 2007, 19:41
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Serve me a slice of C.

If it's easier to be bankrupt, no wonder lawyers are busier.

If not, the arugment falls apart.
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Re: CR - Economy [#permalink]  02 Jul 2007, 19:41
If Legislation was passed, the reason for filing for bankruptcy is obvious.

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Re: CR - Economy [#permalink]  02 Jul 2007, 22:42
iamba 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.
F) The media often misrepresent the current state of economic affairs.

C - states the situations are same compared to earlier days. best choice.
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[#permalink]  03 Jul 2007, 03:13
Mine is 'C' too.

The increase in number of bankruptcies due to financial failures makes sense if the Legislation has not been recently passed to make legal bankruptcy easier to obtain.
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Re: CR - Economy [#permalink]  26 May 2008, 17:11
iamba 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. - As per passage this is not an assumption rather a conclusion.
B) Economic growth cannot be measured in terms of productivity. - Again a conclusion based on the evidence cited in the passage
C) Legislation has not been recently passed to make legal bankruptcy easier to obtain. - Prior to 6 months the same laws existed, during those time we dont know whether bankruptcy lawyers were busy or not. Cant really take this as an assumption.
D) There has not been an increase in the number of bankruptcy lawyers. Yes, if more people are filing for bankruptcy and the number of bankruptcy lawyers remain constant then each lawyer will be busier than usual.
F) The media often misrepresent the current state of economic affairs. - Doesnt really say anything

OA please.
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Re: CR - Economy [#permalink]  19 Jul 2008, 08:44
The OA is C. I don't really agree with it. I think it's a stretch to bring in something about legislation. I believe C may be true, but it's not a critical assumption of the passage IMO. I chose A on the MGMAT CAT where I found this question.
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The media claim that the economy is entering a phase of [#permalink]  20 May 2009, 18:33
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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. 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.

Please discuss in detail. Thanks
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Re: State of economy - MGMAT [#permalink]  20 May 2009, 20:36
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IMO C

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 --> negating: Unemployment rates are useful indicators of growth and prosperity --> not strong enough to weaken the argument
B Economic growth cannot be measured in terms of productivity -->negating: Economic growth can be measured in terms of productivity --> not strong enough to weaken the argument
C Legislation has not been recently passed to make legal bankruptcy easier to obtain --> best: If legislation has been easier, it accounts for the increase of people filling for bankruptcy, not because of the deterioration of the economy
D There has not been an increase in the number of bankruptcy lawyers -->weaken: because there has been a decrease or remain of number of lawyers, this accounts for the busier activity of lawyers, not because of the increase of bankruptcy cases
E The media often misrepresent the current state of economic affairs -->irrelevant
Re: State of economy - MGMAT   [#permalink] 20 May 2009, 20:36

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