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

 It is currently 30 Aug 2016, 03:25

### 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

# Two years ago, the government of Runagia increased by 20

Author Message
TAGS:

### Hide Tags

Manager
Joined: 07 Dec 2011
Posts: 104
Location: India
GMAT Date: 07-30-2012
GPA: 2.66
WE: Information Technology (Computer Software)
Followers: 37

Kudos [?]: 369 [3] , given: 116

Two years ago, the government of Runagia increased by 20 [#permalink]

### Show Tags

26 Jul 2012, 00:31
3
KUDOS
6
This post was
BOOKMARKED
00:00

Difficulty:

25% (medium)

Question Stats:

74% (02:13) correct 26% (01:36) wrong based on 295 sessions

### HideShow timer Statistics

Two years ago, the government of Runagia increased by 20 percent the government-provided pensions paid to Runagians over 65. The aim of the increase was to stimulate the economy in the rural regions of the country, where most pension recipients live. Statistics, however, show that there has been no increase in economic activity in those regions since then, but that there has been noticeably more spending in the urban areas.

Which of the following, if true, most helps to explain why the increase resulted in the unintended state of affairs described?

A. Until the pensions were increased, many Runagians over 65 in rural regions had been receiving support from their children who live in urban areas.
B. The pensions were increased when the number of people below the poverty level in rural areas of Runagia reached an all-time high.
C. City-dwellers in Runagia rarely travel to rural regions of the country.
D. The Runagian postal system is so inefficient that it can take up to three weeks for pension checks to reach recipients in rural areas.
E. On average, the pensions were higher in rural than in urban areas before the increase.

Quote:
need an explanation for the OA
[Reveal] Spoiler: OA

_________________

Director
Status: Enjoying the GMAT journey....
Joined: 26 Aug 2011
Posts: 735
Location: India
GMAT 1: 620 Q49 V24
Followers: 70

Kudos [?]: 463 [1] , given: 264

Re: Two years ago, the government of Runagia increased by 20 pe [#permalink]

### Show Tags

26 Jul 2012, 00:47
1
KUDOS
Two years ago, the government of Runagia increased by 20 percent the government-provided pensions paid to Runagians over 65. The aim of the increase was to stimulate the economy in the rural regions of the country, where most pension recipients live. Statistics, however, show that there has been no increase in economic activity in those regions since then, but that there has been noticeably more spending in the urban areas.

A discrepancy has been cited,so the correct answer will make sure that both sides of the discrepancy remain valid and that both sides can co-exist.

Which of the following, if true, most helps to explain why the increase resulted in the unintended state of affairs described?

A. Until the pensions were increased, many Runagians over 65 in rural regions had been receiving support from their children who live in urban areas.
The pensioners were receiving support from their children until the hike in the pension. Now, after the hike the children have stopped the money they used to send to their parents and are spending the additional money( besides their money) in their native urban areas. So the economic activity remains same in the rural whereas it increases in the urban because more money is available to urban dwellers. Correct
B. The pensions were increased when the number of people below the poverty level in rural areas of Runagia reached an all-time high.
Doesn't resolve the issue. X.
C. City-dwellers in Runagia rarely travel to rural regions of the country.
Doesn't resolve the issue. X.
D. The Runagian postal system is so inefficient that it can take up to three weeks for pension checks to reach recipients in rural areas.
still they are getting pension after 3 weeks so the activity should increase after 3 weeks. X
E. On average, the pensions were higher in rural than in urban areas before the increase.
Very generic + if the pensions were already higher in rural than in urban then the increase in rural should be more vis-a vis urban.X
_________________

Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING.

A WAY TO INCREASE FROM QUANT 35-40 TO 47 : http://gmatclub.com/forum/a-way-to-increase-from-q35-40-to-q-138750.html

Q 47/48 To Q 50 + http://gmatclub.com/forum/the-final-climb-quest-for-q-50-from-q47-129441.html#p1064367

Three good RC strategies http://gmatclub.com/forum/three-different-strategies-for-attacking-rc-127287.html

Joined: 28 May 2012
Posts: 138
Location: India
Concentration: General Management, Strategy
GPA: 3.33
WE: Information Technology (Retail)
Followers: 3

Kudos [?]: 54 [1] , given: 11

Re: Two years ago, the government of Runagia increased by 20 [#permalink]

### Show Tags

11 Sep 2012, 21:58
1
KUDOS
maybeam wrote:
Two years ago, the government of Runagia increased by 20 percent the government-provided pensions paid to Runagians over 65. The aim of the increase was to stimulate the economy in the rural regions of the country, where most pension recipients live. Statistics, however, show that there has been no increase in economic activity in those regions since then, but that there has been noticeably more spending in the urban areas.

Which of the following, if true, most helps to explain why the increase resulted in the unintended state of affairs described?

A. Until the pensions were increased, many Runagians over 65 in rural regions had been receiving support from their children who live in urban areas.
B. The pensions were increased when the number of people below the poverty level in rural areas of Runagia reached an all-time high.
C. City-dwellers in Runagia rarely travel to rural regions of the country.
D. The Runagian postal system is so inefficient that it can take up to three weeks for pension checks to reach recipients in rural areas.
E. On average, the pensions were higher in rural than in urban areas before the increase.

Quote:
need an explanation for the OA

A) if the pension earlier for the citizens was 100 and old people used to spend 120 , they would receive the +20 from their children in urban areas.

Now pension is up to 120, and therefore, the additional 20 bucks now remain with the children in urban areas and hence they tend to spend more now.

Therefore, and increase in spending in urban areas.

HTH !
_________________

You want something, go get it . Period !

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 9307
Followers: 807

Kudos [?]: 165 [0], given: 0

Re: Two years ago, the government of Runagia increased by 20 [#permalink]

### Show Tags

01 Oct 2014, 06:34
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Manager
Joined: 23 Jan 2012
Posts: 78
Followers: 1

Kudos [?]: 10 [0], given: 40

Re: Two years ago, the government of Runagia increased by 20 [#permalink]

### Show Tags

01 Oct 2014, 20:29
Option A is the only option that addresses both the rural and urban population. All other options are either irrelevant or address the issue partially. hth.

Posted from my mobile device
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 9307
Followers: 807

Kudos [?]: 165 [0], given: 0

Re: Two years ago, the government of Runagia increased by 20 [#permalink]

### Show Tags

28 Oct 2015, 13:25
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Two years ago, the government of Runagia increased by 20   [#permalink] 28 Oct 2015, 13:25
Similar topics Replies Last post
Similar
Topics:
7 Years ago, some in the government's intelligence community 5 06 Nov 2012, 19:13
9 Two years ago, the cost of the raw material used in a 6 17 Oct 2010, 11:18
2 One year ago a local government initiated an antismoking 20 23 Jul 2010, 09:31
Two years ago, the cost of the raw material used in a 6 10 Oct 2009, 17:33
6 Two years ago, the cost of the raw material used in a 11 27 Jun 2009, 10:31
Display posts from previous: Sort by