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Which of the following most logically completes the passage?

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Manager
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Which of the following most logically completes the passage? [#permalink] New post 26 Jul 2012, 02:19
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

53% (01:39) correct 47% (00:52) wrong based on 17 sessions
Which of the following most logically completes the passage?

Concerned about the well-being of its elderly citizens, the government of Runagia decided two years ago to increase by 20 percent the government-provided pension paid to all Runagians over 65. Inflation in the intervening period has been negligible, and the increase has been duly received by all eligible Runagians. Nevertheless, many of them are no better off financially than they were before the increase, in large part because ______________.


A. They rely entirely on the government pension for their income.

B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check.

C. They buy goods whose prices tend to rise especially fast in times of inflation.

D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high.

E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living


I am not convinced with the OA for this question..
Option D seems more appropriate here.

Kindly help.
[Reveal] Spoiler: OA

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Re: Which of the following most logically completes the passage? [#permalink] New post 26 Jul 2012, 03:15
Very good question;
(D) is tempting but incorrect choice.

Let's discuss one by one:-

A. They rely entirely on the government pension for their income.
yes and for that reason they have been given the pension and Govt is giving its best and increasing the pension by 20% even if there is no inflation.

B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check.
the pension was started 2 years back.

C. They buy goods whose prices tend to rise especially fast in times of inflation.
no inflation quoted

D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high.
It is a very general statement and if the pension was hiked for more BPL elderly people then the condition would have been better off financially after the pension hike.

E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
If they need 1000 for a comfortable life and the pension was 700, then 300 was given by their children, not the 20% pension hike is adding 140 to 700 to a total of 840 so they still lack 160 which is given by their children to live just a comfortable life

Hope this works !
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Re: Which of the following most logically completes the passage? [#permalink] New post 26 Jul 2012, 04:41
I think C is the correct answer. Though the inflation is high, but the price of products which elderly people are using might rise. This can happen because inflation is calculated based on prices of various products. And these products are just negligible in number.

Why D is not correct?
D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high.

If the poverty is reached all time high, it means it has to come down. And if more money is pouring in by pension increase, it has no option but to reduce only. In this scenario elderly folks should be in a better state after this, which is not the case.
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Re: Which of the following most logically completes the passage? [#permalink] New post 26 Jul 2012, 05:40
thanks thevenus...
i had initially marked D as the option.. and couldn't get to disagree with it.. but then, taking a closer look at the concluding line(before the blank), i realised that we were talking about a smaller group among the total number of elderly people... Nevertheless, many of them were no better..... and not ALL the elderly people..
then option E fits in perfectly as per your explanation..
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Kudos [?]: 19 [0], given: 48

Re: Which of the following most logically completes the passage? [#permalink] New post 26 Jul 2012, 05:45
guitarstrings wrote:
I think C is the correct answer. Though the inflation is high, but the price of products which elderly people are using might rise. This can happen because inflation is calculated based on prices of various products. And these products are just negligible in number.

Why D is not correct?
D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high.

If the poverty is reached all time high, it means it has to come down. And if more money is pouring in by pension increase, it has no option but to reduce only. In this scenario elderly folks should be in a better state after this, which is not the case.



Option C would be incorrect because we are talking about a time frame when inflation is negligible.. if they were to buy such articles whose prices rose during inflation, then they would be financially more sound than before..

think of it as - u buy a gram of gold at no inflation at $20. (as investment)
during inflation, the prices of the same gold rise to $75 per gram..
wouldn't that make you better off than before.
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GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes.
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Re: Which of the following most logically completes the passage?   [#permalink] 26 Jul 2012, 05:45
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