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Director
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While Governor Verdant has been in office, the states budget [#permalink]
 16 Jul 2004, 22:06
Question Stats:
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Please explain your answer.
While Governor Verdant has been in office, the state’s budget has increased by an average of 6 percent each year. While the previous governor was in office, the state’s budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.
Which of the following, if true, would most seriously weaken the conclusion drawn above?
(A) The rate of inflation in the state averaged 10 percent each year during the previous governor’s term in office and 3 percent each year during Verdant’s term.
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
(D) During Verdant’s term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor’s term.
(E) During the previous governor’s term in office, the state introduced several so-called “austerityâ€
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Manager
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E for me.
(E) During the previous governor’s term in office, the state introduced several so-called “austerityâ€
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VP
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A for me. I will try to explain, a bit later.
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Director
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Agree with DJ
A is my FA (1min 26s)
Reason: If the rate of inflation increased by a greater factor in the previous governer's term, and just by 3% in Verdant's term then low spending does not imply that there is a stunted growth, rather, it would imply that with the same amount of money the state could achieve more growth (the only thing which I am still thinking about is whether 10% and 3% mean anything!...it is possible that money spent (or) the value achieved with 10% rate of increase in inflation might be more than with 3% increase in the rate of inflation....but will wail for the OA!)
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Manager
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E for me too.
A - I don't know how inflation is linked to "growth in state spending"
B - ditto for the tax cuts
C- It is obvious because budget has only increased, so this is just restating the facts
D - This also seems out of scope of the question
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Senior Manager
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I believe it is E. It would most seriously weaken the conclusion drawn below because the austerety budgets were introduced earlier - an another cause to refute the conclusion.
A looks out of scope. Inflation and slowdown in the growth in state spending are unrelated within the scope of the passage.
What is OA? 
Geethu wrote: Please explain your answer.
While Governor Verdant has been in office, the state’s budget has increased by an average of 6 percent each year. While the previous governor was in office, the state’s budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.
Which of the following, if true, would most seriously weaken the conclusion drawn above?
(A) The rate of inflation in the state averaged 10 percent each year during the previous governor’s term in office and 3 percent each year during Verdant’s term.
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
(D) During Verdant’s term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor’s term.
(E) During the previous governor’s term in office, the state introduced several so-called “austerity” budgets intended to reduce the growth in state spending
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Awaiting response,
Thnx & Rgds,
Chandra
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Senior Manager
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The growth you are talking about is different from the growth in state spending.
Anyway, let us await OA.
Vithal wrote: Agree with DJ
A is my FA (1min 26s)
Reason: If the rate of inflation increased by a greater factor in the previous governer's term, and just by 3% in Verdant's term then low spending does not imply that there is a stunted growth, rather, it would imply that with the same amount of money the state could achieve more growth (the only thing which I am still thinking about is whether 10% and 3% mean anything!...it is possible that money spent (or) the value achieved with 10% rate of increase in inflation might be more than with 3% increase in the rate of inflation....but will wail for the OA!)
_________________
Awaiting response,
Thnx & Rgds,
Chandra
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Director
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A is the answer.
Thanks for your explanation Vithal.
Vithal wrote: Agree with DJ
A is my FA (1min 26s)
Reason: If the rate of inflation increased by a greater factor in the previous governer's term, and just by 3% in Verdant's term then low spending does not imply that there is a stunted growth, rather, it would imply that with the same amount of money the state could achieve more growth (the only thing which I am still thinking about is whether 10% and 3% mean anything!...it is possible that money spent (or) the value achieved with 10% rate of increase in inflation might be more than with 3% increase in the rate of inflation....but will wail for the OA!)
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Manager
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wow, A is the answer! That means it is expected to know some basic facts, like inflation is taken into consideration in comparing spendings. I thought otherwise, and eliminated A.
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Senior Manager
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Congrats Vithal. Right answer says it all.
mallelac wrote: The growth you are talking about is different from the growth in state spending. Anyway, let us await OA. Vithal wrote: Agree with DJ
A is my FA (1min 26s)
Reason: If the rate of inflation increased by a greater factor in the previous governer's term, and just by 3% in Verdant's term then low spending does not imply that there is a stunted growth, rather, it would imply that with the same amount of money the state could achieve more growth (the only thing which I am still thinking about is whether 10% and 3% mean anything!...it is possible that money spent (or) the value achieved with 10% rate of increase in inflation might be more than with 3% increase in the rate of inflation....but will wail for the OA!) _________________
Awaiting response,
Thnx & Rgds,
Chandra
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Senior Manager
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1 min & A
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