Last visit was: 09 Jul 2025, 12:34 It is currently 09 Jul 2025, 12:34
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
LoneSurvivor
Joined: 23 Nov 2016
Last visit: 18 Jul 2021
Posts: 306
Own Kudos:
743
 [7]
Given Kudos: 156
GMAT 1: 690 Q50 V33
Products:
GMAT 1: 690 Q50 V33
Posts: 306
Kudos: 743
 [7]
Kudos
Add Kudos
7
Bookmarks
Bookmark this Post
avatar
RITESH24
Joined: 15 Jun 2019
Last visit: 24 Jan 2025
Posts: 28
Own Kudos:
20
 [1]
Given Kudos: 56
Location: India
Schools:
GMAT 1: 530 Q44 V19
Schools:
GMAT 1: 530 Q44 V19
Posts: 28
Kudos: 20
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
avatar
Bulla123
Joined: 28 Sep 2019
Last visit: 10 Oct 2020
Posts: 6
Own Kudos:
Given Kudos: 19
Location: India
GMAT 1: 610 Q49 V24
GMAT 1: 610 Q49 V24
Posts: 6
Kudos: 6
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Hea234ven
Joined: 12 Jul 2019
Last visit: 20 Sep 2021
Posts: 72
Own Kudos:
Given Kudos: 678
Status:No knowledge goes waste
Location: Norway
Concentration: Finance, Economics
GPA: 3.3
WE:Corporate Finance (Commercial Banking)
Posts: 72
Kudos: 44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Waiting for good explanation why b wrong and c right

Posted from my mobile device
avatar
chandan6660
Joined: 12 Feb 2019
Last visit: 07 Dec 2019
Posts: 1
Given Kudos: 24
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
In option b it is unclear that whether the low budget project are sanctioned or still to be sanctioned,while option c clears it by using continue

Posted from my mobile device
User avatar
dushyanta
Joined: 27 May 2015
Last visit: 06 Mar 2025
Posts: 60
Own Kudos:
Given Kudos: 29
Posts: 60
Kudos: 62
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Because of the economic slowdown, there is a large drop in the number of new projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

A) The project spending by the government had risen over the last few years before the economic slowdown.
B) Owing to the economic slowdown, many low-budget government projects have been shelved.
C) Crucial projects in larger public interest continue to receive government funding.
D) The economy is expected to slip further in the coming few months.
E) Economic slowdown has made the government refocus on its priorities, pushing projects lower in the list.


chandan6660
In option b it is unclear that whether the low budget project are sanctioned or still to be sanctioned,while option c clears it by using continue

Posted from my mobile device

Though I would agree 'Sanctioned' would have made the Option B airtight, But I dont think there is still any option better than that, more so Option C

low budget Projects are shelved --> It means they are not funded as of now and hence only high budgets are funded and hence the AVERAGE spending gone up

in option C - Crucial Projects in larger project does not automatically means Costly projects or thats what I believe

IMO - B is still better option
avatar
raghav2710
Joined: 07 Apr 2018
Last visit: 05 Nov 2021
Posts: 1
Given Kudos: 23
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Why is Option C the correct answer ,especially when compared to option B?
avatar
saishivapriya
Joined: 21 Nov 2017
Last visit: 25 Mar 2020
Posts: 11
Own Kudos:
12
 [1]
Given Kudos: 4
Location: India
Concentration: Leadership, International Business
GPA: 4
WE:Information Technology (Consulting)
Posts: 11
Kudos: 12
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
So according to me, B cannot be right because, the argument says "Because of the economic slowdown, there is a large drop in the number of new projects sanctioned by the government. At the same time, the average spending per project has gone up." which means that there is a drop in number of new sanctions.
Consider that there were 90 projects initially each with average budget x dollars, and say previous year the government has sanctioned a 10 more, making the total no. of projects 100 and average budget y dollars.
Now, y could be greater or lesser than x, based on the budget of the 10 new projects.

From the argument, we know that there is a drop in new sanctions. So consider that there were 5 sanctions this time(which is a drop from previous number i.e. 10), making the total as 105 projects and average budget say z dollars.

Option B) Owing to the economic slowdown, many low-budget government projects have been shelved.
says that of the 100 previous projects, that were sanctioned previously before economic slow down, the low budget ones are removed. This cannot give any solid explanation or evidence for the fact that there is an increase in average budget of the projects on right now. This can help only if we are sure of the fact that incoming 5 projects(which is after a drop in no. of incoming projects sanctioned) have an average budget more than the "low-budget" projects that are shelved.


Having said that, I still am not completely convinced why C is the right choice because it doesn't draw a sound connection between "Critical" and budget of the project.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 9 July 2025
Posts: 102,609
Own Kudos:
Given Kudos: 97,813
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 102,609
Kudos: 739,883
Kudos
Add Kudos
Bookmarks
Bookmark this Post
LoneSurvivor
Because of the economic slowdown, there is a large drop in the number of new projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

A) The project spending by the government had risen over the last few years before the economic slowdown.
B) Owing to the economic slowdown, many low-budget government projects have been shelved.
C) Crucial projects in larger public interest continue to receive government funding.
D) The economy is expected to slip further in the coming few months.
E) Economic slowdown has made the government refocus on its priorities, pushing projects lower in the list.

VIDEO EXPLANATION FROM Experts' Global



avatar
RITESH24
Joined: 15 Jun 2019
Last visit: 24 Jan 2025
Posts: 28
Own Kudos:
20
 [2]
Given Kudos: 56
Location: India
Schools:
GMAT 1: 530 Q44 V19
Schools:
GMAT 1: 530 Q44 V19
Posts: 28
Kudos: 20
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
LoneSurvivor
Because of the economic slowdown, there is a large drop in the number of new projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

A) The project spending by the government had risen over the last few years before the economic slowdown.
B) Owing to the economic slowdown, many low-budget government projects have been shelved.
C) Crucial projects in larger public interest continue to receive government funding.
D) The economy is expected to slip further in the coming few months.
E) Economic slowdown has made the government refocus on its priorities, pushing projects lower in the list.

VIDEO EXPLANATION FROM Experts' Global





For me it is still vague and unclear
consider this- "talking about option B it tells that low budgeted products are shelved and also new projects are not sanctioned by the government."
very simple example-cost of projects earlier 50,40,30,20 its average cost is around 35{50+40+30+
20/4}
but when some low budgets are shelved say 30 and 20 be eliminated so the average of 50 and 40 is 45 which is in fact greater than earlier... this solves the problem...
BUT, now lets look at the option C it talks about that some crucial project in public interest continued to receive government funding remember.
now,keeping one thing in mind is that these projects are the old ones and not new projects and also it doesn't mention whether they are low budgeted.. so accordingly the average cost should remain same because no new ones are sanctioned but the average cost increases it doesn't clear how the average increases. SO FOR ME B IS STILL STRONG OVER C....PLEASE EXPLAIN HOW MY REASONING IS WRONG??
avatar
pratikpokharkar
Joined: 16 Dec 2018
Last visit: 30 May 2021
Posts: 21
Own Kudos:
Given Kudos: 233
Posts: 21
Kudos: 22
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi, this is one of the query already posted in discussion. I also have the same query.

VeritasKarishma , GMATNinja Pl clarify.
"
in option C - Crucial Projects in larger project does not automatically means Costly projects or thats what I believe

IMO - B is still better option"
User avatar
sid0791
Joined: 09 Aug 2020
Last visit: 28 Feb 2024
Posts: 81
Own Kudos:
Given Kudos: 16
Posts: 81
Kudos: 10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ExpertsGlobal

Hi ExpertGlobal

As per your video explanation, it still doesn't make sense why C is correct. For example, there are 5 projects-
1) 1000 USD
2) 1000 USD
3) 1000 USD
4) 100 USD
5) 100 USD

The average is- 640 USD

Now according to C,

"Crucial projects in larger public interest continue to receive government funding"

First of all, it is never said that Crucial projects are costly, they could be just of 100 USD, but even if we assume, that crucial projects are of 1000 USD.
And they continue to receive funding, still, it never said that these are new projects, so if there is no new project and they are old projects, there won't be any change in average.

Also, it never states that old small projects had discontinued, thus again, not increasing the average.

But B clearly increases the average.

VeritasKarishma egmat

Your take please?
User avatar
sid0791
Joined: 09 Aug 2020
Last visit: 28 Feb 2024
Posts: 81
Own Kudos:
Given Kudos: 16
Posts: 81
Kudos: 10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Ok, I checked with the latest question on expert's global,

I guess this is the old one.

The latest updated question is-

Because of the economic slowdown, there is a large drop in the number of projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

A) The project spending by the government had risen over the last few years before the economic slowdown.
B) Owing to the economic slowdown, many low-budget government projects have been shelved.
C) Crucial projects in larger public interest, which are always high in budget, continue to receive government funding.
D) The economy is expected to slip further in the coming few months.
E) Economic slowdown has made the government refocus on its priorities, pushing projects lower in the list.

With this answer should be C
avatar
Quality2MBA
Joined: 28 Jul 2020
Last visit: 22 May 2022
Posts: 6
Own Kudos:
Posts: 6
Kudos: 4
Kudos
Add Kudos
Bookmarks
Bookmark this Post
i don't know if you guys are still asking this but C is chosen over B b/c of the following:

Because of the economic slowdown, there is a large drop in the number of new projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

B) Owing to the economic slowdown, many low-budget government projects have been shelved. Response: sure economic slow down may have caused low-budget projects to be cut but why cause an increase that non affected project ?

C) Crucial projects in larger public interest continue to receive government funding. Crucial projects will still be worked on as they are crucial and they will continue to receive funding. The funding is now more because these projects need to be completed whereas others can be tossed
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 09 Jul 2025
Posts: 16,101
Own Kudos:
74,229
 [1]
Given Kudos: 475
Location: Pune, India
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 16,101
Kudos: 74,229
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sid0791
Ok, I checked with the latest question on expert's global,

I guess this is the old one.

The latest updated question is-

Because of the economic slowdown, there is a large drop in the number of projects sanctioned by the government. At the same time, the average spending per project has gone up.

Which one of the following, if true, best explains the increase in the average spending per project?

A) The project spending by the government had risen over the last few years before the economic slowdown.
B) Owing to the economic slowdown, many low-budget government projects have been shelved.
C) Crucial projects in larger public interest, which are always high in budget, continue to receive government funding.
D) The economy is expected to slip further in the coming few months.
E) Economic slowdown has made the government refocus on its priorities, pushing projects lower in the list.

With this answer should be C

Yes, the answer is not clear here.
New projects are not being taken up. So new projects are not impacting the average expense.

Average spending per project has gone up, not the overall spending on projects.

B) Owing to the economic slowdown, many low-budget government projects have been shelved.

Makes sense provided the high-budget projects have continued.

Avg spending per project = Total spending/Number of projects

When low budget projects are cut, total spending doesn't reduce by too much but number of projects does become lower. So average will be expected to go up.

C) Crucial projects in larger public interest, which are always high in budget, continue to receive government funding.

Makes sense provided low in budget projects are cut (as explained above).

Hence (B) and (C) together will explain that avg has gone up.

If I had to choose one, I will choose (B) because it tells me that low budget projects are cut. I will assume that everything else stays the same so high budget projects are continuing. Hence average expense per project has gone up.
But if I am told that high budget projects are continuing, it doesn't tell me whether low budget projects are cut or not. If anything, I need to assume that everything else stays the same so why should the average spending INCREASE?
User avatar
TBT
Joined: 09 Aug 2020
Last visit: 26 Nov 2023
Posts: 309
Own Kudos:
Given Kudos: 494
Location: India
Concentration: Marketing, General Management
Posts: 309
Kudos: 434
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Not convinced with the official answer. I think it should be B.

This Question is Locked Due to Poor Quality
Hi there,
The question you've reached has been archived due to not meeting our community quality standards. No more replies are possible here.
Looking for better-quality questions? Check out the 'Similar Questions' block below for a list of similar but high-quality questions.
Want to join other relevant Problem Solving discussions? Visit our Critical Reasoning Practice Questions Forum for the most recent and top-quality discussions.
Thank you for understanding, and happy exploring!
Moderators:
GMAT Club Verbal Expert
7349 posts
GMAT Club Verbal Expert
235 posts