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

 It is currently 28 Jun 2016, 10:06

### 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

# Which of the following most logically completes the passage?

Author Message
TAGS:

### Hide Tags

Manager
Status: Re-take.. The OG just loves me too much.
Joined: 18 Jun 2012
Posts: 67
Location: India
GMAT 1: 600 Q44 V29
WE: Information Technology (Consulting)
Followers: 4

Kudos [?]: 38 [0], given: 48

Which of the following most logically completes the passage? [#permalink]

### Show Tags

26 Jul 2012, 03:19
00:00

Difficulty:

55% (hard)

Question Stats:

56% (01:39) correct 44% (00:39) wrong based on 36 sessions

### HideShow timer Statistics

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

_________________

Live Life the Way YOU Love It !!

GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes.
MGMAT 1 [11/09/2012] : 640 (Q44;V34) - need to improve quant pacing and overcome verbal fatigue.

Director
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 563
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 16

Kudos [?]: 234 [0], given: 75

Re: Which of the following most logically completes the passage? [#permalink]

### Show Tags

26 Jul 2012, 04:15
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 !
_________________

" Make more efforts "
Press Kudos if you liked my post

Intern
Joined: 12 Jul 2012
Posts: 27
Followers: 0

Kudos [?]: 9 [0], given: 1

Re: Which of the following most logically completes the passage? [#permalink]

### Show Tags

26 Jul 2012, 05:41
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.
Manager
Status: Re-take.. The OG just loves me too much.
Joined: 18 Jun 2012
Posts: 67
Location: India
GMAT 1: 600 Q44 V29
WE: Information Technology (Consulting)
Followers: 4

Kudos [?]: 38 [0], given: 48

Re: Which of the following most logically completes the passage? [#permalink]

### Show Tags

26 Jul 2012, 06:40
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..
_________________

Live Life the Way YOU Love It !!

GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes.
MGMAT 1 [11/09/2012] : 640 (Q44;V34) - need to improve quant pacing and overcome verbal fatigue.

Manager
Status: Re-take.. The OG just loves me too much.
Joined: 18 Jun 2012
Posts: 67
Location: India
GMAT 1: 600 Q44 V29
WE: Information Technology (Consulting)
Followers: 4

Kudos [?]: 38 [0], given: 48

Re: Which of the following most logically completes the passage? [#permalink]

### Show Tags

26 Jul 2012, 06:45
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.
_________________

Live Life the Way YOU Love It !!

GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes.
MGMAT 1 [11/09/2012] : 640 (Q44;V34) - need to improve quant pacing and overcome verbal fatigue.

Re: Which of the following most logically completes the passage?   [#permalink] 26 Jul 2012, 06:45
Similar topics Replies Last post
Similar
Topics:
1 Which of the following most logically completes the passage? 5 04 Oct 2010, 16:55
9 Which of the following most logically completes the passage? 15 19 Nov 2009, 03:31
8 Which of the following most logically completes the passage? 22 30 Sep 2008, 06:48
which of the following most logically completes the passage? 1 19 Jun 2008, 14:28
Which of the following most logically completes the passage? 3 02 Nov 2006, 22:13
Display posts from previous: Sort by