Around the World in 80 Questions (Day 3): In Country X, 17 percent of

Question

In Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

A. As the population has declined, the proportion of adults in the population has not changed.
B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
D. The average size of a student loan has not decreased over the last ten years. 
E. The average cost to attend an undergraduate education program has not decreased over the last ten years.

Bunuel · Accepted Answer

Target Test Prep Official Explanation:

The correct answer to this question will add support for the conclusion “many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.”

The support we have so far is that the percentage of the adult population that has outstanding student loans has increased. What information would help to confirm that the reason for this increase is that more people have taken out loans?

(A) As the population has declined, the proportion of adults in the population has not changed.

The fact that the proportion of adults in the population has not changed as the population has declined weakens rather than strengthens the argument. After all, if the overall population has declined and the proportion of adults has not changed, then there are fewer adults in Country X than before. So, maybe fewer, rather than more, people have taken out student loans even though the percentage of adults that have loans has increased.

(B) In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.

Correct Answer

If the average duration of a student loan has decreased, then we’d expect people to be paying off loans faster, and we’d expect the number of student loans outstanding to decrease. Instead, the proportion of people with outstanding loans has increased. So, something must be offsetting the decrease in duration.

Since one factor that could offset that decrease in duration would be an increase in the number of people taking out student loans, this choice gives us more reason to believe that it is in fact the case that more people have taken out student loans.

(C) The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.

If anything, this choice would be a reason to believe that fewer people are taking out student loans. After all, the government giving out grants would result in a reduced need for taking out loans.

(D) The average size of a student loan has not decreased over the last ten years.

If, as this choice says, the average size of a student loan has not decreased, then the average size has increased or remained the same. Thus, given what this choice says, it could be the case that the reason why there are more loans outstanding is that the average size has increased and that, therefore, people are taking longer to pay them off.

Since this choice leaves open the possibility that there is an alternative reason for the increase in the number of loans outstanding, it certainly does not strengthen the argument.

(E) The average cost to attend an undergraduate education program has not decreased over the last ten years.

This choice does not have a clear effect on the argument. In any case, the fact that the cost to attend an undergraduate program has not decreased doesn’t indicate that more people have been taking out loans.

Answer: B

UtkarshAnand · Answer

In Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

A. As the population has declined, the proportion of adults in the population has not changed.
B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
D. The average size of a student loan has not decreased over the last ten years.
E. The average cost to attend an undergraduate education program has not decreased over the last ten years.

Explanation:

(A) It rather casts a doubt on the conclusion that more people in Country X have taken out student loans in the last ten years than did in the previous ten years. If the population decreased with the proportion of adult population remaining intact then the no. of loans appearing to be higher are not actually higher but they seem to be higher because of the same proportion of adult population as was before. OUT.
(B) CORRECT. If the average duration of loans has decreased from twelve to five years then the no. of adults with outstanding loans should have been lower but instead it is not. So this strengthens our conclusion that more adults have been taking out loans as compared to before.
(C) This has got nothing to do with more people taking out student loans or not. What if the grant provided was insufficient? OUT.
(D) Irrelevant. OUT.
(E) Irrelevant. OUT.

ANSWER B

Jarvis07 · Answer

The correct answer is option B: In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.

This option strengthens the support for the conclusion because it indicates that people are taking out student loans more frequently in recent years. If the average duration of a student loan has decreased significantly, it suggests that loans are being paid off faster, enabling individuals to take out new loans sooner. Therefore, the decrease in loan duration implies that more people have taken out student loans in the last ten years compared to the previous ten years.

Now let's analyze why the other options are incorrect:

A. As the population has declined, the proportion of adults in the population has not changed.
This option does not provide any information about the number of people taking out student loans. Even if the proportion of adults in the population has remained the same, it doesn't necessarily imply an increase in the number of people with student loans.

C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
While this statement suggests that more financial aid is available through grants, it does not directly indicate an increase in the number of people taking out student loans. Grants are not the same as loans, and individuals who receive grants may not need to take out loans at all. Therefore, this option does not strengthen the conclusion.

D. The average size of a student loan has not decreased over the last ten years.
This statement does not provide evidence regarding the number of people taking out student loans. Even if the average loan size has not decreased, it does not necessarily mean that more people are taking out loans. It only suggests that the amount of money borrowed per loan has remained constant.

E. The average cost to attend an undergraduate education program has not decreased over the last ten years.
While the cost of education is an important factor, this statement does not directly address the number of people taking out student loans. It is possible that the cost has remained the same, but the number of people obtaining loans may have still increased due to other factors. Therefore, this option does not strengthen the conclusion.

divyagolyan · Answer

In Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

A. As the population has declined, the proportion of adults in the population has not changed. -  The proportion of adults hasn't changed, but the population has declined. Hence, even when we know the percent of adults with student loans has increased, we can't say whether the absolute number has increased. And the conclusion is about the absolute number of people indicated by "many more" - a classic GMAT trap.

B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years. -  Correct. If the average duration of a student loan has decreased from 12 to 5 yrs and we're still seeing a greater percentage of student loans, this indicates that more people are taking loans and we don't just have more people from 10 yrs ago whose loans are unpaid till now.

C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago. -  At max, this acts as a slight weakened. Because if more people are getting student grants (money that is not to be repaid), fewer people will now take student loans (money that has to be repaid with interest) then.

D. The average size of a student loan has not decreased over the last ten years. -  We're not concerned about the size of student loans, we're merely concerned about the number of student loans.

E. The average cost to attend an undergraduate education program has not decreased over the last ten years. -  Doesn't touch the conclusion at all. Even if we extend our thinking, if the average cost to attend an undergraduate education program has not decreased over the last ten years, then the number of loans should remain the same, not increase. So doesn't strengthen the conclusion.

TargetKellogg2024 · Answer

In Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.
 
 Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?
 
 A. As the population has declined, the proportion of adults in the population has not changed.
  This statement is about the proportion of adults in the population and does not provide any information about student loans or the number of people taking them. It is not relevant to the conclusion.

B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
  This statement suggests that the average duration of a student loan has decreased significantly in the last ten years. If the loans are being paid off faster, it implies that more people might have taken out loans recently, which could strengthen the conclusion.

C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
  This statement is about student grants and not student loans. While it might have an impact on the affordability of education, it doesn't directly address the number of people taking out student loans.

D. The average size of a student loan has not decreased over the last ten years. 
  This statement suggests that the average size of student loans has remained the same over the last ten years. If the percentage of the population with outstanding student loans has increased while the average loan size hasn't decreased, it implies that more people have taken out loans, which strengthens the conclusion.

E. The average cost to attend an undergraduate education program has not decreased over the last ten years.
  This statement is about the average cost of attending an undergraduate education program and doesn't directly provide information about student loans or the number of people taking them. It is not directly relevant to the conclusion.

Anne_ · Answer

IMO answer is B

Conclusion: Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.
To strengthen the conclusion, we need a fact that shows that more people have taken new loans in last ten years than previous decade and it's not the existing people from the previous decade whose loans are continuing.

A. INCORRECT
As the population has declined, the proportion of adults in the population has not changed.
-This was the toughest choice to eliminate. This should be one of the assumptions on which the whole passage is based. Since this doesnot give the information about the prepayment period, we don't know if the 17 percent population with loans includes outstanding 10 percent of people from previous decade. Which would indicate that only 7 percent of population have taken new loans. This would not strengthen the conclusion.

B.  CORRECT 
In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
- Suppose the duration was more then 10 years, it was possible that out of the 17 percent who has outstanding loans, 10 percent of it is from previous decade, hence only 7 percent have new loans, which is less than 10. This breaks the conclusion.
Now if the duration is less than 10 years (say 5 years as in question), this 17 percent statistic has to be new loans. Hence, it strengthens the conclusion.
P.S. - This has an assumption that adult population have not decreased significantly in last 10 years.

C. INCORRECT
The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
- This works as a weakener, if govt provides more grants now, there is a possibility that less people will be taking new loan then

D. INCORRECT
The average size of a student loan has not decreased over the last ten years. - Size of loan doesn't impact the number of new loans taken

E. INCORRECT
The average cost to attend an undergraduate education program has not decreased over the last ten years. - This may or maynot change the number of new loans taken

pintukr · Answer

In Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

A. As the population has declined, the proportion of adults in the population has not changed.
 If there has been decline in the population, the magnitude of the decline will ascertain whether the current 17 percent of the adult population is higher/lower vis-a-vis the previous 10 percent of the adult population (ie, 10 years ago)

B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
 If the average duration of a student loan has decreased and the fact that 17 percent of the adult population has outstanding student loans ---> it strengthens the premise that more people in Country X have taken out student loans in the last ten years

C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
 If grants are available in bulk, it doesn't help the argument that more people in Country X have taken out student loans in the last ten years

D. The average size of a student loan has not decreased over the last ten years.
 The size of student loan is not under discussion, rather it's the number of student loan applicants

E. The average cost to attend an undergraduate education program has not decreased over the last ten years.
 Similarly, the cost to attend the programs is also out of scope; since no data has been provided regarding income level of the applicants , neither for 10 years ago, nor for current scenario 
 
 (B) is the CORRECT answer

DG1989 · Answer

Given:  n Country X, 17 percent of the adult population has outstanding student loans. Ten years ago, the figure was 10 percent. Thus, we can conclude that many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Which of the following statements about Country X, if true, most strengthens the support for the above conclusion?

Per given information
1. 17 percent of adult population has outstanding student loans.
2. 10 years ago, 10 percent of adult population had outstanding student loans.

Conclusion:  Many more people in Country X have taken out student loans in the last ten years than did in the previous ten years.

Let's do some pre-thinking here.
When can we say that there is an outstanding loan.
1. Either when they took a loan in the past which is still continuing as per the loan repayment terms and duration or,
2. Someone took a fresh loan.
3. The person taking the loan defaulted or is bankrupt and now unable to repay the loan.

So our correct answer choice should point out or hint that there was a reason for adult population to take new student loans in order to STRENGTHEN the conclusion.

A. As the population has declined, the proportion of adults in the population has not changed.
 This is rather a weakner here. If the adult population didn't change while the population declined, that will automatically increase the percentage of adult population present and say this adult population had outstanding loans to begin with then this number will increase only as it will be relative to the old population. This then won't mean that more people took loan.  INCORRECT

B. In the last ten years, the average duration of a student loan has decreased from more than twelve years to five years.
 This choice seems inline with our prethinking. If in the last ten years, the average duration of student loan has reduced from more than 12 years to 5 years, it means people were required to repay their outstanding loan in 5 years as opposed to 12 years ten years ago. Hence if the outstanding loan percentage is increased from 10 to 17 percent now, that could mean only one thing that people took new loan.  CORRECT

C. The government provides student grants (money that is not to be repaid) much more liberally now than it did ten years ago.
 This is a  trap  choice. Grants is not same as loans. Grants are gifts or subsidies provided to people where they are not required to repay that amount while loans are to be repaid.  INCORRECT

D. The average size of a student loan has not decreased over the last ten years.
 Irrelevant. We don't care about the size or amount of loan. The matter is about number of student loans and not their size.  INCORRECT

E. The average cost to attend an undergraduate education program has not decreased over the last ten years.
 Out of scope. This doesn't provide any correlation with the loan.  INCORRECT

RiyaJ0032 · Answer

divyagolyan

with (B), aren't you assuming that the denominator (Adult population) did not decrease

with nothing given, how can you assume this?

it can be that the denominator decreased, so even if the % increased, it need not be that the number increased too

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