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# Concerned about financial well-being of its elderly citizens

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19 Nov 2009, 03:31
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Which of the following most logically completes the passage?

Concerned about financial well-being of its elderly citizens, the government of Runagia decided two years ago to increase by 20 percent the government-provided pensionpaid to all Runagians over 65. Inflation in the intervening period has been negligible,and the increase has been duly received by all eligible Runagians. Nevertheless,many of them are no better off financially than they were before the increase, in large part because ________.

A. They rely entirely on the government pension for their income
B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check
C. They buy goods whose prices tend to rise especially fast in times of
inflation
D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living

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19 Nov 2009, 04:12
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A. They rely entirely on the government pension for their income
If this is true they should be better off because pension's real value has increased - 20% nominal increase with no inflation - that's 20% increase in real terms

B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check
Yes, but pension was increased 2 years ago, I don't see how 3 week time lag can be important in this case

C. They buy goods whose prices tend to rise especially fast in times of inflation
Inflation was near to no existent, consumer goods' prices stayed the same

D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
Pension was increased for all of them - eligible people duly received the increase. So why are many of them no better off? No answer here...

E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
I think that's the case: So children were providing some minimum standard of living for their parents but not more then that. When pension was increased it substituted this source: amount of financial help from children was decreased, it was no more needed because increased part of "comfortable living cost" was financed by pension.

In short, pension increase + children's help decrease = same standard of living for elderly

(E)

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20 Nov 2009, 06:31
shalva wrote:
In short, pension increase + children's help decrease = same standard of living for elderly

Right. With pension increase there is no reason for children to help any longer.
It's E

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20 Nov 2009, 06:40
good explanation shalva +1 for you

OA is E and yeah its a GMATprep question

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27 Nov 2009, 01:59
It is E

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27 Sep 2011, 03:06
shalva wrote:
A. They rely entirely on the government pension for their income
If this is true they should be better off because pension's real value has increased - 20% nominal increase with no inflation - that's 20% increase in real terms

B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check
Yes, but pension was increased 2 years ago, I don't see how 3 week time lag can be important in this case

C. They buy goods whose prices tend to rise especially fast in times of inflation
Inflation was near to no existent, consumer goods' prices stayed the same

D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
Pension was increased for all of them - eligible people duly received the increase. So why are many of them no better off? No answer here...

E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
I think that's the case: So children were providing some minimum standard of living for their parents but not more then that. When pension was increased it substituted this source: amount of financial help from children was decreased, it was no more needed because increased part of "comfortable living cost" was financed by pension.

In short, pension increase + children's help decrease = same standard of living for elderly

(E)

Good explanation shalva.
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27 Sep 2011, 04:34
Yeah thnq Shalva
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29 Sep 2011, 01:34
shalva wrote:
E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
I think that's the case: So children were providing some minimum standard of living for their parents but not more then that. When pension was increased it substituted this source: amount of financial help from children was decreased, it was no more needed because increased part of "comfortable living cost" was financed by pension.

In short, pension increase + children's help decrease = same standard of living for elderly

Where does it say that children have stopped providing supplement income? Shouldn't the sentence be in past tense? Like, In Runagia children typically supplemented the income of elderly parents, but only by enough to provide them with a comfortable living
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29 Sep 2011, 16:43
shalva wrote:
E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
I think that's the case: So children were providing some minimum standard of living for their parents but not more then that. When pension was increased it substituted this source: amount of financial help from children was decreased, it was no more needed because increased part of "comfortable living cost" was financed by pension.

In short, pension increase + children's help decrease = same standard of living for elderly

Where does it say that children have stopped providing supplement income? Shouldn't the sentence be in past tense? Like, In Runagia children typically supplemented the income of elderly parents, but only by enough to provide them with a comfortable living

i have the same question, but what i think is, the conjunction But implies the meaning that children have stopped providing supplement. Anyways i went for D
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20 Nov 2011, 22:19
+1 E
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22 Nov 2011, 20:55
+ 1 for E. The money elderly get whether from the government or their children is consistently the same.
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22 Nov 2011, 22:07
+1 for E

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17 Jan 2012, 09:36
shrive555 wrote:
shalva wrote:
E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
I think that's the case: So children were providing some minimum standard of living for their parents but not more then that. When pension was increased it substituted this source: amount of financial help from children was decreased, it was no more needed because increased part of "comfortable living cost" was financed by pension.

In short, pension increase + children's help decrease = same standard of living for elderly

Where does it say that children have stopped providing supplement income? Shouldn't the sentence be in past tense? Like, In Runagia children typically supplemented the income of elderly parents, but only by enough to provide them with a comfortable living

i have the same question, but what i think is, the conjunction But implies the meaning that children have stopped providing supplement. Anyways i went for D

In the given context, it is TRUTH and hence no need to say specifically that children stoppED.
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25 Jan 2012, 09:51
IMO E

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05 Jul 2014, 22:40
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10 Aug 2015, 01:37
Hello from the GMAT Club VerbalBot!

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Re: Concerned about financial well-being of its elderly citizens   [#permalink] 10 Aug 2015, 01:37
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# Concerned about financial well-being of its elderly citizens

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