Which of the following most logically completes the passage? : GMAT Critical Reasoning (CR)
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# Which of the following most logically completes the passage?

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

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28 Aug 2012, 16:46
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Which of the following most logically completes the passage?
Concerned about the financial 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 missed this one and am curious to hear people's reasonings on this. I will post my own thoughts once a few people have responded.
[Reveal] Spoiler: OA
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Re: Which of the following most logically completes the passage? [#permalink]

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13 Sep 2012, 03:37
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Arbitrageur wrote:
Which of the following most logically completes the passage?
Concerned about the financial 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 missed this one and am curious to hear people's reasonings on this. I will post my own thoughts once a few people have responded.

Since quite a few people got stuck in this question, I would like to give my analysis here.

First of all, complete the passage questions belong to one of your regular question types (strengthen/weaken/inference/paradox etc).
This question is just a 'resolve the paradox' question.

The government increased the pension it pays to all elderly by 20 %. Inflation has been 0 and the increase has been received by all eligible Runagians. Still, many of them are no better off financially than they were before.

If someone was getting $100, he is now getting$120. There is no inflation. Then he must be better off now. But he isn't. He still has the same overall financial position as before.

How will you resolve it?

C. they buy goods whose prices tend to rise especially fast in times of inflation
Doesn't make sense. There has been no inflation. We don't know what happens to the prices in times of no inflation.

D. the pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
Doesn't matter. Everyone is getting more money. Someone who used to get $100 now gets$120.

E. in Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
The pension is probably not enough to ensure a comfortable living. If the elders need $200 to live comfortably, children used to provide the extra$100. Now that elderly get $120, children will probably provide only$80 since they help only by enough to provide them a comfortable living. This does resolve our paradox and is the answer. So the financial situation of the elderly stays the same.

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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 06 Jul 2012 Posts: 43 Followers: 0 Kudos [?]: 15 [0], given: 36 Re: Concerned about the financial well-being [#permalink] ### Show Tags 28 Aug 2012, 23:03 Selected C; not able to understand how come E is correct.... _________________ If you think you are lost, you are. Senior Manager Joined: 24 Mar 2010 Posts: 347 Followers: 7 Kudos [?]: 104 [0], given: 4 Re: Concerned about the financial well-being [#permalink] ### Show Tags 28 Aug 2012, 23:08 ravstime wrote: Selected C; not able to understand how come E is correct.... I picked D. I now realize why D is wrong but still don't quite get why E is the correct answer. In order for E to be right, we have to assume that the children of the elderly will reduce the amount of money they give their parents once the pension goes up. That way, they're receiving the same amount each month; hence, their standards of living don't go up. Manager Joined: 07 Feb 2008 Posts: 65 Location: United States WE: Consulting (Computer Software) Followers: 3 Kudos [?]: 75 [0], given: 14 Re: Concerned about the financial well-being [#permalink] ### Show Tags 29 Aug 2012, 01:31 My Answer - E. Took me 2mins 45 s. The complete questions are the toughest for me. 1. elderly citizens got more pension from govt, for the past 2 years 2. Inflation did not increase 3. Still, elderly not better off financially "in large part because" indicates the next line would be a reason to explain the discrepancy. I thought if I could think of some reason this could happen, but could not think of any. So read the choices Arbitrageur wrote: I missed this one and am curious to hear people's reasonings on this. I will post my own thoughts once a few people have responded. Which of the following most logically completes the passage? Concerned about the financial 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 does not explain, yup. now they get more, why cant they be better off? B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check does not explain, they get it late every time - so they do get it regularly, would it be that big a problem? C. they buy goods whose prices tend to rise especially fast in times of inflation does not explain, little confusing, but does not seem relevant D. the pension was increased when the number of elderly Runagians below the poverty level reached an all-time highdoes not explain - still should increase the standard of living E. in Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living if Children already have to support, so more pension would mean children help parents less and more money in children's pockets. THis also says children help only enough to provide for comfortable living - so, there goes the possibility that children will not reduce the amount they give to parents. One thing that still confused me was if all parent already got 90% of what they needed and 20% increase would make them receive >100% of their basic need. In this case, would their living not increase? then I realized, this is a reasoning question not Strengthen/weaken question. Manager Status: exam is close ... dont know if i ll hit that number Joined: 06 Jun 2011 Posts: 206 Location: India Concentration: International Business, Marketing GMAT Date: 10-09-2012 GPA: 3.2 Followers: 2 Kudos [?]: 22 [0], given: 1 Re: Concerned about the financial well-being [#permalink] ### Show Tags 29 Aug 2012, 10:51 this question is still not clear even after poe though i reached e i didnt feel like going with it and blindly went with c _________________ just one more month for exam... Current Student Joined: 07 Sep 2011 Posts: 74 GMAT 1: 660 Q41 V40 GMAT 2: 720 Q49 V39 WE: Analyst (Mutual Funds and Brokerage) Followers: 3 Kudos [?]: 45 [0], given: 13 Re: I missed this one and am curious to hear people's reasonings [#permalink] ### Show Tags 29 Aug 2012, 12:08 E. in Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living If the children were supplementing income for their elderly parents, this means that they were giving their parents money in addition to the pension receieved. If the pension increased, and the children only supplemented enough for a comfortable living, this means that the children must have decreased their supplement. Manager Status: exam is close ... dont know if i ll hit that number Joined: 06 Jun 2011 Posts: 206 Location: India Concentration: International Business, Marketing GMAT Date: 10-09-2012 GPA: 3.2 Followers: 2 Kudos [?]: 22 [0], given: 1 Re: I missed this one and am curious to hear people's reasonings [#permalink] ### Show Tags 29 Aug 2012, 17:50 understood that now but i fear i will not be able to answer this question if it appears on exam in a short span of 2 min _________________ just one more month for exam... BSchool Thread Master Joined: 28 May 2012 Posts: 138 Location: India Concentration: General Management, Strategy GPA: 3.33 WE: Information Technology (Retail) Followers: 3 Kudos [?]: 62 [0], given: 11 Re: Which of the following most logically completes the passage? [#permalink] ### Show Tags 12 Sep 2012, 20:09 Arbitrageur wrote: Which of the following most logically completes the passage? Concerned about the financial 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 missed this one and am curious to hear people's reasonings on this. I will post my own thoughts once a few people have responded. A- if older people rely totally on the pension their standard should of living should have gone up. B- how does it matter ? Each person receives the pension . C-Against the argument - argument says inflation was negligible. D- how does it matter when was the pension increased ? if BPL was all time high they would be better off with the increase right ? E- this cracks it. Earlier people were getting 100$ pension + 20$from their children additionally . Now their pension has increased to 120$ and their children have stopped giving them the additional 20\$ so how are they better off ?

I hope I'm clear with this.
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Re: Which of the following most logically completes the passage?   [#permalink] 12 Sep 2012, 20:09
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