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Concerned about financial well-being of its elderly

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Re: Advanced CR: Concerned about the well-being of its elderly citizens [#permalink]

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New post 21 Sep 2016, 21:30
I think E.

Maybe the children stopped supporting the elders after the pension increase.

I picked E because I could eliminate the others.

A: even if they relied, an increase by 20% is definitely make them better off financially

B: Out of scope. Banks efficiency does not matter as long as the money reaches the elders.

C: Already ruled out by the argument.

D: Does not matter. All of them would receive increased pension.

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Re: Concerned about financial well-being of its elderly [#permalink]

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New post 07 Jan 2017, 20:44
Answer should be confined only to the pensioners not to their offspring. I humbly think that question of reduction in children's contribution is not relevant enough. Firstly, it is quite out of scope. Secondly, if it is supposed that the children are rather poor, their contribution is not at all likely to merit consideration; and, on the other hand, if it is supposed that children concerned are fairly rich, their contributions are not likely to come down in response to the rise in pension by the government. So, this particular issue is valid only if the children belong to either the lower middle class or the middle class. It, therefore, should better be regarded "out of scope". Moreover, many facts can be raised, quite a few government pensioners are not likely to have considerate children, some pensioners may not be without any family and in some cases, some pensioners may have to contribute to the well being of their unfortunate children. So, this particular option (E) deserves to be disregarded. [It can be option C (but for that passage must be stated "inflation not as negligible")]

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Re: Concerned about financial well-being of its elderly [#permalink]

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New post 08 Jan 2017, 03:46
Thank you for this explanation...

< So, if the pension amount has increased, the amount of money these elderly people receive from their kids would decrease.. >

I am finally able to understand the reasoning behind this because of the line you put :)


shoonya wrote:
answer is E.

children supplement the income of elderly parents by just enough to provide the parents a comfortable living. So, if the pension amount has increased, the amount of money these elderly people receive from their kids would decrease. So, overall they would still be getting the same money.

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Re: Concerned about the financial well-being of its elderly citizens, the [#permalink]

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New post 09 Feb 2017, 07:30
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Re: Concerned about the financial well-being of its elderly citizens, the [#permalink]

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New post 15 Feb 2017, 09:27
The Powerscore Bible states that answer choices for assumption questions cannot contain extraneous information.

But E contains an extra information- that children generally supplement the income of elderly parents.

How is this correct?

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Re: Concerned about the financial well-being of its elderly citizens, the [#permalink]

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New post 15 Feb 2017, 10:20
Hi.. Can anyone explain why d is incorrect?? Still confused..

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Re: Concerned about financial well-being of its elderly [#permalink]

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New post 05 May 2017, 04:51
I have come across a similar question from GMAT OG16. :
Plan: Concerned about the welfare of its senior citizens, the government of
Runagia decided two years ago to increase by 20 percent the government-provided
pension paid to all Runagians age sixty-five and older. Result: Many Runagian
senior citizens are no better off financially now than they were before the increase.
Further information: The annual rate of inflation since the pension increase has
been below 5 percent, and the increased pension has been duly received by all
eligible Runagians.
In light of the further information, which of the following, if true, does most to
explain the result that followed implementation of the plan?
(A) The majority of senior citizens whose financial position has not
improved rely entirely on the government pension for their income.
(B) The Runagian banking system is so inefficient that cashing a pension
check can take as much as three weeks.
(C) The prices of goods and services that meet the special needs of many
senior citizens have increased at a rate much higher than the rate of
inflation.
(D) The pension increase occurred at a time when the number of Runagians
age sixty-five and older who were living below the poverty level was at an
all-time high.
(E) The most recent pension increase was only the second such increase in
the last ten years.

For this question, the official answer is "C".
I agree that there is a slight difference in these two questions in terms of inflation rate. Although, the question above states that inflation is below 5%, doesn't the author wants to say that though overall inflation is negligible, but prices of the specific commodities have increased?
Please help me with this question.
Thanks in advance :)

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Re: Concerned about the well-being of its elderly citizens, the [#permalink]

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New post 08 Jul 2017, 23:14
Merged topics. Please, search before posting questions!
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Re: Concerned about the financial well-being of its elderly citizens, the [#permalink]

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New post 20 Oct 2017, 22:45
in Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living

Here in option E don't we need another assumption that after government pension children have stopped supplemeting the income of elderly parents ?

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Re: Concerned about the financial well-being of its elderly citizens, the [#permalink]

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New post 21 Oct 2017, 23:16
kannu44 wrote:
in Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living

Here in option E don't we need another assumption that after government pension children have stopped supplemeting the income of elderly parents ?


Option (E) tells us that children supplement the income by just enough to provide a comfortable living. We do not need to assume that they have stopped supplementing. They could still be supplementing but they will provide just enough to be comfortable.

As explained above:


The pension was probably not enough to ensure a comfortable living, say it was $100. If the elders need $200 to live comfortably, children used to provide the extra $100. Now that elderly get $120, children will probably provide only $80 since they help only by enough to provide them a comfortable living. This does resolve our paradox and is the answer. So the financial situation of the elderly stays the same.
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Re: Concerned about financial well-being of its elderly [#permalink]

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New post 15 Nov 2017, 18:43
shoonya wrote:
answer is E.

children supplement the income of elderly parents by just enough to provide the parents a comfortable living. So, if the pension amount has increased, the amount of money these elderly people receive from their kids would decrease. So, overall they would still be getting the same money.


i think this is a huge assumption that we are making here. The children could as such provide the same amount as earlier along with their added pension

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Re: Concerned about financial well-being of its elderly [#permalink]

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New post 17 Nov 2017, 03:44
Hi,
Can anyone explain why E is the answer and why not D ?

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Re: Concerned about financial well-being of its elderly   [#permalink] 17 Nov 2017, 03:44

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