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

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13 Apr 2005, 14:35
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Which of the following most logically completes the passage?

Concerned about 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

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i hate when people do'nt post the OA, it leaves in guessing!!!!

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Director
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13 Apr 2005, 15:06
(C). 20% increase can be nullified by increased price of the their preferred goods.
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13 Apr 2005, 16:38
"E"...will explain if correct.
Director
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13 Apr 2005, 17:25
banerjeea_98 wrote:
"E"...will explain if correct.

U r right. It is (E). S%$# (C) is wrong because argument specifically mentions that inflation is negligible. (E) basically says 20% addition from elders will be offset by addition from their children. When will I learn from my mistakes . Kill me. VP Joined: 18 Nov 2004 Posts: 1440 Followers: 2 Kudos [?]: 36 [0], given: 0 [#permalink] ### Show Tags 13 Apr 2005, 18:29 jpv wrote: banerjeea_98 wrote: "E"...will explain if correct. U r right. It is (E). S%$#
(C) is wrong because argument specifically mentions that inflation is negligible.
(E) basically says 20% addition from elders will be offset by addition from their children.

When will I learn from my mistakes . Kill me.

Don't fret too much ...remember to narrow down to 2 choices, here it will be C and E and after that look closely, most of the time the obvious choice is a trap.
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13 Apr 2005, 18:52
banerjeea_98 wrote:
most of the time the obvious choice is a trap.

I think this is more important. Because after narrowing down to 2 choices i always pick the wrong one (i guess the obvious one).
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13 Apr 2005, 19:06
I liked (D).

(D) brings in a condition where the elderly are so financially weak that 20% offset wont alleviate their condition.
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13 Apr 2005, 19:44
A).They rely entirely on the government pension for their income
- Does not explain why they're poor despite the increase

B).Runagian banks are so inefficient that it can take up to three weeks to cash a pension check
- Will still get the cash eventually, so does not complete the sentence

C).They buy goods whose prices tend to rise especially fast in times of inflation
- But inflation is negligible during this period

D).The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
- Suggest that financial status of the elderly is extremely poor, and so 20% is not going to help them.

E).In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
- Out of scope. It still deos not tells us why 20% extra paid out does not improve the situation

I'll go with D
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13 Apr 2005, 21:55
hi,
it is definetely D because E suggests that children also provide their parents with some money.So if children are providing with some money and there is a 20% increase, conditions should improve.It cannot be C because it's mentioned that there wasn't any inflation in that period

regards
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13 Apr 2005, 22:04
just a quick question, is the 20% increment to a pool of money to be distributed to all the elderly, or is it a 20% increment to the money allocated to each elderly ?
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13 Apr 2005, 22:25
hi,
it's mentioned in the passage that "to increase by 20 percent the government-provided pension paid to all Runagians over 65." which means individually to each elderly

ywilfred wrote:
just a quick question, is the 20% increment to a pool of money to be distributed to all the elderly, or is it a 20% increment to the money allocated to each elderly ?
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13 Apr 2005, 23:07
vikky267 wrote:
hi,
it's mentioned in the passage that "to increase by 20 percent the government-provided pension paid to all Runagians over 65." which means individually to each elderly

ywilfred wrote:
just a quick question, is the 20% increment to a pool of money to be distributed to all the elderly, or is it a 20% increment to the money allocated to each elderly ?

if that's the case, wouldn't the author write it as "...government provided pension paid to each Runagians over 65" ?
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13 Apr 2005, 23:08
The reason I asked, is because if the entire pool of money was increased by 20%, it makes D very much stronger than just 20% increased for each individual..
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13 Apr 2005, 23:43
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 going to go with my gut (bad thing) and say E. The reason: the all-time high poverty level is higher in relation to what? Also, many of the elderly were below the poverty line prior to the subsidy. Who is to say that the influx of funds did not shift these individuals above the line? The fact that the children supply the income "up to" the poverty level tells me that the elderly's condition is consistently one of poverty, despite the increase in pension funds.
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14 Apr 2005, 00:47
sastal wrote:
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 going to go with my gut (bad thing) and say E. The reason: the all-time high poverty level is higher in relation to what? Also, many of the elderly were below the poverty line prior to the subsidy. Who is to say that the influx of funds did not shift these individuals above the line? The fact that the children supply the income "up to" the poverty level tells me that the elderly's condition is consistently one of poverty, despite the increase in pension funds.

hmm.. what you said makes a lot of sense too... is there any OA for this question ?
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14 Apr 2005, 02:30
E)

D) should be out because even if the number of elderly Runagians below the poverty level reached an all-time high their situation would be better

E) is it, because the gap that the children balanced is just a little smaller than before. but before and after the increase the situation of the parents still provides a comfortable living. so nothing changed...
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