It is currently 15 Dec 2017, 04:22

Decision(s) Day!:

CHAT Rooms | Wharton R1 | Stanford R1 | Tuck R1 | Ross R1 | Haas R1 | UCLA R1


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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Chief Economist: Usually, the release of economic data about

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

1 KUDOS received
Manager
Manager
avatar
Joined: 29 Apr 2012
Posts: 100

Kudos [?]: 83 [1], given: 47

Location: United States
Concentration: International Business, Real Estate
GMAT Date: 10-22-2012
GMAT ToolKit User
Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 09 Oct 2012, 23:23
1
This post received
KUDOS
5
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

78% (01:16) correct 22% (01:32) wrong based on 256 sessions

HideShow timer Statistics

Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?
• The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
• The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
• The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
• The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
• The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.
[Reveal] Spoiler: OA

Last edited by Skywalker18 on 08 Feb 2017, 10:51, edited 1 time in total.
OA Added

Kudos [?]: 83 [1], given: 47

Economist GMAT Tutor Discount CodesMagoosh Discount CodesEMPOWERgmat Discount Codes
1 KUDOS received
Manager
Manager
avatar
Status: faciendo quod indiget fieri
Joined: 13 Mar 2012
Posts: 83

Kudos [?]: 44 [1], given: 4

Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 10 Oct 2012, 02:16
1
This post received
KUDOS
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?

• The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
INCORRECT.The second part is not the conclusion, it is a reasoning
• The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
CORRECT. first is a pattern that will not hold in this case. Second is the reason why the first pattern will not hold. The reason is that money will be moved form capital markets to debt structures.
• The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
First is NOT a generalization. It is an observation
• The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
Second is not a prediction, but a factual statement
• The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.
First is a pattern that WILL NOT be repeated. Therefore INCORRECT

Kudos [?]: 44 [1], given: 4

Manager
Manager
User avatar
Status: Prevent and prepare. Not repent and repair!!
Joined: 13 Feb 2010
Posts: 248

Kudos [?]: 137 [0], given: 282

Location: India
Concentration: Technology, General Management
GPA: 3.75
WE: Sales (Telecommunications)
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 10 Oct 2012, 02:27
To me its E. It clearly states what the economists thinks initially. the second boldface contradicts that.
_________________

I've failed over and over and over again in my life and that is why I succeed--Michael Jordan
Kudos drives a person to better himself every single time. So Pls give it generously
Wont give up till i hit a 700+

Kudos [?]: 137 [0], given: 282

Intern
Intern
avatar
Joined: 12 Jun 2012
Posts: 40

Kudos [?]: 42 [0], given: 28

Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 10 Oct 2012, 05:25
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices
. However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities
. In the above argument, the statements in boldface play which of
the following roles?

A) The first acknowledges a consideration against the main conclusion of the chief economist; the second is that
conclusion.
B) The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
C) The first is a generalization that the chief economist accepts as true; the second is a consequence that follows
from that generalization.
D) The first is evidence that the chief economist provides in support of a certain prediction; the second is that
prediction.
E) The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.

First sentence is an example of usual observed behaviour
Second sentence is the reason why this behaviour will not work

A) Correct. The second is definitely a conclusion, the first is defintely a consideration that the economist acknowledges will usually happen
B) Incorrect. First is correct, but second isn't quite right.
C)Incorrect. The second isn't a consequence from the generalisation, it is a conflicting view.
D)Incorrect. First and second sentences in the parapgraph are contradictory, D assumes they are complimentary
E)incorrect, first is a parrern of cause and effect but the economist DOES NOT predict is will be the case.
_________________

If you find my post helpful, please GIVE ME SOME KUDOS!

Kudos [?]: 42 [0], given: 28

1 KUDOS received
BSchool Forum Moderator
avatar
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 889

Kudos [?]: 743 [1], given: 44

Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
GMAT ToolKit User Premium Member Reviews Badge
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 10 Oct 2012, 07:49
1
This post received
KUDOS
Choice B is the correct one. Actually, I confuse btw choice B and choice E. However, the cause and effect in the first bold is not hold/ repeated in the case at issue. Also, the second part, as choice E said, is wrong. The second part support the prediction of the author.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Kudos [?]: 743 [1], given: 44

Director
Director
User avatar
Affiliations: SAE
Joined: 11 Jul 2012
Posts: 519

Kudos [?]: 343 [0], given: 269

Location: India
Concentration: Strategy, Social Entrepreneurship
GMAT 1: 710 Q49 V37
GPA: 3.5
WE: Project Management (Energy and Utilities)
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 11 Oct 2012, 01:04
+1B

BF1 – Cause and effect
Case at Issue - this quarter, the release of data about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices
BF2 – Supports Case at Issue

Perfectly presented in option B
:-D
_________________

First Attempt 710 - http://gmatclub.com/forum/first-attempt-141273.html

Kudos [?]: 343 [0], given: 269

Manager
Manager
avatar
Status: exam is close ... dont know if i ll hit that number
Joined: 06 Jun 2011
Posts: 187

Kudos [?]: 31 [0], given: 1

Location: India
Concentration: International Business, Marketing
GMAT Date: 10-09-2012
GPA: 3.2
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 11 Oct 2012, 07:56
usage of usually in the first sentence reaches to the option B
This usage implies that the author will be trying to refute it in the following argument...

Please correct me if i am wrong..
_________________

just one more month for exam...

Kudos [?]: 31 [0], given: 1

1 KUDOS received
BSchool Forum Moderator
avatar
Joined: 23 Jul 2010
Posts: 556

Kudos [?]: 998 [1], given: 321

GPA: 3.4
WE: General Management (Non-Profit and Government)
GMAT ToolKit User Premium Member
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 12 Nov 2013, 00:20
1
This post received
KUDOS

Kudos [?]: 998 [1], given: 321

Manager
Manager
avatar
Joined: 23 Apr 2012
Posts: 53

Kudos [?]: 22 [0], given: 2

GMAT 1: 690 Q49 V34
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 13 Nov 2013, 11:16
E it should be :|


Below is why i think B is incorrect.

B: • The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
The economics never PREDICTS in the first boldface that the prediction will not hold. He only mentions the general phenomenon- how it usually happens.

If however, "Usually" were in bold, then B would be correct .

Kudos [?]: 22 [0], given: 2

Intern
Intern
avatar
Joined: 12 Oct 2013
Posts: 16

Kudos [?]: 8 [0], given: 2

Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 13 Nov 2013, 19:13
I think B as well - many seem to think it is either this, or E.

Quote:
Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross
Domestic Product (GDP) results in an increase in stock prices.
However, this quarter, the release of data
about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP
growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift
of capital from equity to debt securities.
In the above argument, the statements in boldface play which of
the following roles?


Let's break it down:
1st sentence: Claim
2nd sentence: Conclusion (However = the former sentence may not be the case = change in support).
3rd: Premise

Quote:
E. The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the
second acknowledges a circumstance in which that pattern would not hold.

Quote:
B. The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.

E is a pretty strong candidate for the right answer, except that the economist is not just acknowledging the circumstance in which the pattern would not hold, she gives an argument for why it would not hold, thereby expressing her belief in what she thinks will happen. Similarly, E states that the economist predicts that the pattern would be repeated, which is not the case. She just states that usually this is the case; then, she goes ahead and states her prediction.

Thus, B more accurately captures the economist's argument.

surbhi87 wrote:
B: • The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the
second offers a consideration in support of that prediction.
The economics never PREDICTS in the first boldface that the prediction will not hold. He only mentions the general phenomenon- how it usually happens. If however, "Usually" were in bold, then B would be correct .

The answer choice is not saying that the first bold-faced statement is the economist predicting -- it is saying that the first bolded-faced statement is one she then ultimately makes a prediction abuot. Although, I definitely understand the confusion!

mohan514 wrote:
usage of usually in the first sentence reaches to the option B
This usage implies that the author will be trying to refute it in the following argument...

Please correct me if i am wrong..

I don't think the word "usually" really has any bearing on whether or not it will be refuted -- the word "however" is more of an indication that the previous statement would be refuted. "Usually" in this case just means "typically".
(Does anybody else think that "usually" is weirdly spelled word... ? Stare at it for a while and you'll see... )

Arthur1000 wrote:
First sentence is an example of usual observed behaviour
Second sentence is the reason why this behaviour will not work

A) Correct. The second is definitely a conclusion, the first is defintely a consideration that the economist acknowledges will usually happen
B) Incorrect. First is correct, but second isn't quite right.
C)Incorrect. The second isn't a consequence from the generalisation, it is a conflicting view.
D)Incorrect. First and second sentences in the parapgraph are contradictory, D assumes they are complimentary
E)incorrect, first is a parrern of cause and effect but the economist DOES NOT predict is will be the case.

You're totally correct that the first sentence is an observation of something usual! However, the second sentence is not the reason -- it is the conclusion, which is opposite of the previous claim. Notice that the last bolded-sentence supports the second sentence -- whichever statement is most supported by the argument is usually the conclusion.

Kudos [?]: 8 [0], given: 2

Intern
Intern
avatar
Joined: 05 Dec 2013
Posts: 16

Kudos [?]: 5 [0], given: 18

Location: United States
GPA: 3.5
WE: Brand Management (Consulting)
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 04 Feb 2014, 03:24
why most of these questions under sub 600 level,running without OA?..leading to contrasting views and in the end,doesn't serve the purpose

Kudos [?]: 5 [0], given: 18

Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1834

Kudos [?]: 1069 [0], given: 90

Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Chief Economist: Usually, the release of economic data about [#permalink]

Show Tags

New post 08 Feb 2017, 10:56
The chief economist begins his argument by describing the usual relationship of cause and effect. Thus, the first statement in boldface represents a generalization that the chief economist accepts as accurate. The economist then goes on to conclude that this time, however, the usual cause-and-effect relationship will not hold and strong figures of the GDP will cause a decrease rather than an increase in stock prices. To support this conclusion, the economist offers evidence explaining how strong GDP figures may lead to lower stock prices. Therefore, the second statement in boldface represents evidence that supports the main conclusion of the economist.

(A) This answer choice correctly describes the role of the first statement but incorrectly states that the second statement in boldface represents the conclusion of the economist rather than the evidence that supports that conclusion. Remember, the conclusion of the economist is that strong GDP figures will result in a decrease rather than an increase in stock prices.
(B) CORRECT. This answer choice correctly identifies the role of each of the two parts in boldface. The first part represents a generalization that is typically accurate but will not be repeated in the case at issue. The second portion presents evidence in support of the economist’s prediction.
(C) This answer choice correctly describes the role of the first portion but mistakenly states that the second part in boldface follows from this generalization. The second statement in boldface presents evidence that supports the opposite effect from that described in the first portion. Namely, the economist claims that this time, stock prices will decrease rather than increase,
as would be usual.
(D) This answer choice incorrectly states that the first portion supports rather than weighs against that economist’s prediction. In addition, this answer choice incorrectly states that the second portion in boldface represents the economist's
prediction rather than evidence supporting it.
(E) This answer choice incorrectly states that the first statement will be repeated in the case at issue. Remember, the economist argues that the usual pattern will not hold this time. The second statement is correctly described as acknowledging
a circumstance in which the usual pattern will not hold.
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Kudos [?]: 1069 [0], given: 90

Re: Chief Economist: Usually, the release of economic data about   [#permalink] 08 Feb 2017, 10:56
Display posts from previous: Sort by

Chief Economist: Usually, the release of economic data about

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.