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TGC
A reduction in the number of people filing new claims for state unemployment benefits is one of the first signs that a nationwide recession is coming to an end. Usually such a reduction indicates that companies are not dismissing as many people, a sure sign of economic recovery. The number of people collecting state unemployment benefits has dropped considerably over the last three months, so the recession is coming to an end.

Which of the following is assumed in the passage above?

A) A majority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose to do so.

B) The drop in the number of people collecting unemployment benefits from the state cannot be traced to a reduction in the number of people being dismissed from minimum wage jobs.

C) A substantial number of people who had been collecting unemployment benefits have been rehired by their former employers during the last three months.

D) A substantial number of people have not in the last three months moved from one state where they have collected unemployment benefits to another state where they continue to receive jobless benefits.

E) The reduction in the number of people collecting unemployment benefits from the state is not because of an increase in the number of people whose benefits came to an end.


Question:
Someone please tell why (A) isn't correct?

VERITAS PREP OFFICIAL SOLUTION:



Correct Answer: E

A drop in the number of new claimants filing for benefits is an indicator that the recession is ending. The new claimants are the relevant group. Choice E eliminates the possibility that the reduction came from a different group: people who had already been collecting. By eliminating this possibility, choice E strengthens the argument. Whether people choose to file is irrelevant. Whether they do file is all that matters. Thus A is incorrect. In B, the type of work, minimum wage or otherwise, is irrelevant. Employers who rehired people are also irrelevant; therefore C is incorrect. Choice D is incorrect because what state people live in is irrelevant. The argument is about the data for state unemployment in general.
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KarishmaB
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A reduction in the number of people filing new claims for state unemployment benefits is one of the first signs that a nationwide recession is coming to an end. Usually such a reduction indicates that companies are not dismissing as many people, a sure sign of economic recovery. The number of people collecting state unemployment benefits has dropped considerably over the last three months, so the recession is coming to an end.

Which of the following is assumed in the passage above?

A majority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose to do so.
The drop in the number of people collecting unemployment benefits from the state cannot be traced to a reduction in the number of people being dismissed from minimum wage jobs.
A substantial number of people who had been collecting unemployment benefits have been rehired by their former employers during the last three months.
A substantial number of people have not in the last three months moved from one state where they have collected unemployment benefits to another state where they continue to receive jobless benefits.
The reduction in the number of people collecting unemployment benefits from the state is not because of an increase in the number of people whose benefits came to an end.
Source: Veritas prep

Someone please tell why (A) isn't correct?

Responding to a pm:

When stuck between two options, use assumption negation technique.

Premises:

- A reduction in the number of people filing new claims for state unemployment benefits is one of the first signs that recession is ending.
- Usually such a reduction indicates that companies are not dismissing as many people, a sure sign of economic recovery.
- The number of people collecting state unemployment benefits has dropped considerably over the last three months

Conclusion: The recession is coming to an end.

From the premises to the conclusion, we are linking 'number of people filing new claims' to 'number of people collecting benefits'. We are saying that if the numebr of people collecting benefits has reduced, it means number of people filing new complaints has reduced too. There are two types of people collecting benefits: People who have been receiving benefits for a while and People putting in new claims.
If no of people collecting benefits has reduced, the reduction could be in the number of people who have been receiving benefits for a while or in no of people putting in new claims or in both.
If we say that reduction in no of people collecting benefits has reduced means reduction in no of people putting in new claims, we are assuming that number of people who have been receiving benefits for a while has stayed the same.
Hence answer (E)

Why not (A)?
Let's negate (A): Only few people who became eligible to file unemployment benefits from the state in the past three months chose to do so.

Is it still possible that recession is coming to an end? Sure. Perhaps only few people became eligible (were fired) and out of those only few filed for benefits. It is still possible that recession is coming to an end.
If the conclusion can hold even after negating an option, the option cannot be an assumption.
If E is negated, it would read "The reduction in the number of people collecting unemployment benefits from the state is because of an increase in the number of people whose benefits came to an end." The conclusion is "Recession is coming to end". This can still hold true if E is negated since the reason for benefits ending could simply be that they became employed.
Is this line of reasoning incorrect?
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nightblade354 I found (E) fishy because I thought Stimulus is talking about a very different set of people.
Here is my reasoning:

Stim says: ''A reduction in the number of people filing new claims for state unemployment''
So these are the new people filing for the benefits, NOT the old people already in the system. This can be confirmed when ''Stim further says that ''reduction indicates that companies are not dismissing as many people''

Option (E) talks about a very different set of people - people who are already in the system.

Not sure whether my logic is correct.


nightblade354


longhaul123,

I was in the same boat you are. If you negate A, which you can do a few ways you come to the realization that numbers are important here, but are not given.

Negation: A minority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose to do so
Or:A majority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose not to do so

-- When looking at both of these options, we could be referring to 5 people, or we could be referring to 5,000,000 people. So we cannot say whether this weakens our conclusion upon negation.

Does this help?
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Tucky

nightblade354 I found (E) fishy because I thought Stimulus is talking about a very different set of people.
Here is my reasoning:

Stim says: ''A reduction in the number of people filing new claims for state unemployment''
So these are the new people filing for the benefits, NOT the old people already in the system. This can be confirmed when ''Stim further says that ''reduction indicates that companies are not dismissing as many people''

Option (E) talks about a very different set of people - people who are already in the system.

Not sure whether my logic is correct.



I’d highly recommend staying away from non-official questions. Little details, and thus assumptions, tend to be overlooked by prep companies. The GMAT and GRE test writers had no such luxury. Stick with OG and LSAT questions and you’ll be just fine.
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