Last visit was: 10 Jul 2025, 06:56 It is currently 10 Jul 2025, 06:56
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
carcass
User avatar
Board of Directors
Joined: 01 Sep 2010
Last visit: 09 Jul 2025
Posts: 4,723
Own Kudos:
36,134
 [20]
Given Kudos: 4,813
Posts: 4,723
Kudos: 36,134
 [20]
3
Kudos
Add Kudos
17
Bookmarks
Bookmark this Post
Most Helpful Reply
avatar
deenesh2309
Joined: 03 Nov 2016
Last visit: 03 Jan 2018
Posts: 22
Own Kudos:
12
 [6]
Given Kudos: 61
Location: India
GMAT 1: 700 Q48 V38
GMAT 1: 700 Q48 V38
Posts: 22
Kudos: 12
 [6]
6
Kudos
Add Kudos
Bookmarks
Bookmark this Post
General Discussion
User avatar
nahid78
Joined: 12 Mar 2013
Last visit: 30 Apr 2023
Posts: 286
Own Kudos:
Given Kudos: 1,062
Products:
Posts: 286
Kudos: 694
Kudos
Add Kudos
Bookmarks
Bookmark this Post
avatar
deep14
Joined: 21 Nov 2014
Last visit: 03 May 2019
Posts: 34
Own Kudos:
42
 [1]
Given Kudos: 16
Location: India
Schools: ISB '18
GMAT 1: 710 Q49 V38
GPA: 3.7
Schools: ISB '18
GMAT 1: 710 Q49 V38
Posts: 34
Kudos: 42
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Ans is C because, according to the critics, that is the exact reason why privatization will not be successful in current scenario

Posted from my mobile device
User avatar
winionhi
Joined: 24 Dec 2015
Last visit: 25 Sep 2017
Posts: 49
Own Kudos:
32
 [2]
Given Kudos: 204
Location: India
Concentration: Marketing, Technology
GMAT 1: 710 Q50 V35
GPA: 3.8
WE:Engineering (Computer Software)
Products:
GMAT 1: 710 Q50 V35
Posts: 49
Kudos: 32
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Since the real problem is between the difference between the outward and inward funds, it is essential to understand the growth in the number of people in each of those categories. C speaks of that.
User avatar
nahid78
Joined: 12 Mar 2013
Last visit: 30 Apr 2023
Posts: 286
Own Kudos:
694
 [1]
Given Kudos: 1,062
Products:
Posts: 286
Kudos: 694
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Ok I understand C is the right answer. But what's wrong with E? Is it out of scope or not related to the conclusion?
User avatar
pikolo2510
Joined: 05 Jul 2017
Last visit: 18 Jul 2021
Posts: 453
Own Kudos:
Given Kudos: 294
Location: India
GMAT 1: 700 Q49 V36
GPA: 4
GMAT 1: 700 Q49 V36
Posts: 453
Kudos: 766
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello Experts,

Can anyone explain the difference between C and E?
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Can anyone explain options c and e
Also, in option c, what does the number of dependents in the future refer to?
I am having a hard time to comprehend option c
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
User avatar
TaN1213
Joined: 09 Mar 2017
Last visit: 12 Mar 2019
Posts: 354
Own Kudos:
888
 [3]
Given Kudos: 644
Location: India
Concentration: Marketing, Organizational Behavior
WE:Information Technology (Computer Software)
Posts: 354
Kudos: 888
 [3]
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sunny91
Can anyone explain options c and e
Also, in option c, what does the number of dependents in the future refer to?
I am having a hard time to comprehend option c
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future

E suggests to take loans to meet the shortage of funds. But the premise is already stating -" Sooner or later, the fund will not be able to meet its obligations", which would mean while taking loans might help in addressing the short term problem, later the same problem is going to arise.

C- Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
Explanation - The issue with current system is because of not being able to maintain a fixed ratio between the workers and recipients.
"Decades ago, there were many more workers for every recipient.." - Example 3 workers for 1 client (many to one relationship)- 3:1
"....but now the situation has reversed." - Now the ratio is reversed - 1 worker for many client- 1:3 (one to many relationship)
So if the number of workers exceed the number of clients in future the situation can again get stable, like it was a decade ago.This would suggest that we wont have to proceed with the privatization of Social Security in the US.
But if the answer is No to 'C', then we will have to go with the privatization.
User avatar
chesstitans
Joined: 12 Dec 2016
Last visit: 20 Nov 2019
Posts: 990
Own Kudos:
Given Kudos: 2,562
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
GMAT 1: 700 Q49 V33
Posts: 990
Kudos: 1,898
Kudos
Add Kudos
Bookmarks
Bookmark this Post
boiled down to A and C.
E is an important pattern b/c E suggests another solution. Also, such pattern often is out of scopes in many question b/c the pattern discusses sth else that is not directly linked with the argument.
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Can someone explain why A isn't the answer ?
User avatar
gmatexam439
User avatar
Moderator
Joined: 28 Mar 2017
Last visit: 18 Oct 2024
Posts: 1,066
Own Kudos:
2,130
 [1]
Given Kudos: 200
Location: India
Concentration: Finance, Technology
GMAT 1: 730 Q49 V41
GPA: 4
Products:
GMAT 1: 730 Q49 V41
Posts: 1,066
Kudos: 2,130
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
According to those in favour of privatisation of Social Security in the US, the current system is impossible to sustain. Decades ago, there were many more workers for every recipient but now the situation has reversed. Sooner or later, the fund will not be able to meet its obligations, because there will be more payments going out, than income coming in. Privatizing the system for the future recipients, while gradually phasing out the system for current and near-term recipients, is probably the best way to keep the system viable.

The answer to which of the following questions would be most useful in determining whether privatization of Social Security in the US would be a good idea?

(A) Whether privatization has proved successful for other government provided services such as employee provident funds -Other funds are out of scope
(B) Whether the population of the US is likely to increase significantly in the future -Out of scope
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future -Correct. If the income earning people become more in number than the payments going out (dependants) people, then the problem can be resolved.
(D) Whether privatization of social security will lead to large scale protests by US citizens -Protests are out of scope
(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system -Taking loans will eventually lead to payment of debt. Thus, this can't be a good evaluation tool.
User avatar
dcummins
Joined: 14 Feb 2017
Last visit: 17 Jun 2025
Posts: 1,069
Own Kudos:
Given Kudos: 368
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
GMAT 5: 600 Q38 V35
GMAT 6: 710 Q47 V41
WE:Management Consulting (Consulting)
Products:
Kudos
Add Kudos
Bookmarks
Bookmark this Post
(C) tries to throw you off with the synonym "dependents" in place of "recipients, which is used in the stem.
avatar
prakhar992
avatar
Current Student
Joined: 05 May 2019
Last visit: 26 Dec 2022
Posts: 82
Own Kudos:
Given Kudos: 133
Location: India
GMAT 1: 710 Q50 V35
GPA: 2.8
GMAT 1: 710 Q50 V35
Posts: 82
Kudos: 12
Kudos
Add Kudos
Bookmarks
Bookmark this Post
dcummins
(C) tries to throw you off with the synonym "dependents" in place of "recipients, which is used in the stem.


Can you explain how to eliminate option E?
avatar
jaisonsunny77
Joined: 05 Jan 2019
Last visit: 25 Aug 2021
Posts: 459
Own Kudos:
Given Kudos: 28
Posts: 459
Kudos: 378
Kudos
Add Kudos
Bookmarks
Bookmark this Post
the summary of the passage is as follows:

Current social security system is impossible to sustain because as things stand, the number of dependents of the fund is increasing, whereas the #of providers to the fund is decreasing. Privatizing the fund by phasing out the old system will make Social security more viable in the future.

(A) Whether privatization has proved successful for other government provided services such as employee provident funds
- what may be true for other government services may not be applicable to the Social security system.

(B) Whether the population of the US is likely to increase significantly in the future
- (B) does not tell us whether the number of dependents/providers of (to) the funds is decreasing or increasing. Without knowing the answer to this question, we cannot arrive at the conclusion.

(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future - if the answer to this question is no, then we can infer that there would be more providers to the fund than dependents. This would improve the situation of the fund. But if the answer is yes, then it would imply that privatization of the current social security system would lead to a shortage of funds since there will now be more dependents than fund providers. Hence, (C) will hep us determine whether the privatization of Social Security in the US would be a good idea. therefore, (C) is the right answer choice.

(D) Whether privatization of social security will lead to large scale protests by US citizens
- irrelevant to the passage

(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system
- the passage is concerned with whether the privatization of Social Security in the US would be a good idea. In this context, ''loans'' is irrelevant.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 10 July 2025
Posts: 102,613
Own Kudos:
Given Kudos: 98,141
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 102,613
Kudos: 740,056
Kudos
Add Kudos
Bookmarks
Bookmark this Post
carcass
According to those in favour of privatisation of Social Security in the US, the current system is impossible to sustain. Decades ago, there were many more workers for every recipient but now the situation has reversed. Sooner or later, the fund will not be able to meet its obligations, because there will be more payments going out, than income coming in. Privatizing the system for the future recipients, while gradually phasing out the system for current and near-term recipients, is probably the best way to keep the system viable.

The answer to which of the following questions would be most useful in determining whether privatization of Social Security in the US would be a good idea?


(A) Whether privatization has proved successful for other government provided services such as employee provident funds

(B) Whether the population of the US is likely to increase significantly in the future

(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future

(D) Whether privatization of social security will lead to large scale protests by US citizens

(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system


This question is a part of QOTD Question Collection


Official Explanation



Answer: C

The argument assumes that in the US the number of dependents in the future will be far more than the number of earning workers, a situation that will lead to the social security funds drying up. However, if this assumption is not true, then the Social Security system could continue working as it has been over the years. C points out this fact and is the correct answer.

(A) Whether privatization has proved successful for other services has no bearing on whether privatization will work for the Social Security system.

(B) The problem is not the population growth rate but the ratio between earners and dependents. As long as this ratio remains favourable, an increase in population should not make any difference.

(C) The correct answer.

(D) This is not the basis of the argument’s conclusion.

(E) Taking loans can provide a short-term solution but the problem will remain in the long term.
User avatar
KrishivA
Joined: 18 Mar 2024
Last visit: 30 Mar 2025
Posts: 1
Given Kudos: 13
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
E is not the most useful question. It is relevant, but not as relevant as C, which directly addresses the point.
nahid78
Ok I understand C is the right answer. But what's wrong with E? Is it out of scope or not related to the conclusion?
Moderators:
GMAT Club Verbal Expert
7349 posts
GMAT Club Verbal Expert
235 posts