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Bunuel
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D? I think as it gives a valid reason.

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IMO, the answer is (E).

The paradox is there is an ongoing downturn in the economy, and the head of a charitable organization expects the amount received in donations to change, but the charitable organization has continued to receive the same amount as before the economic slump (reason to exclude B). Why are donors reasonably expected to donate less but actually donate as much as before the slump? Because they may have some incentives to do so. This is exactly what answer choice E says.

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.
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In my opinion answer should be E
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Concerned about the ongoing downturn in the economy, the head of a large charitable organization recently began reviewing receipts to see how the economic problems have affected the donations that the organization has received. Much to his surprise, the amount received in donations has not changed at all—the charitable organization has continued to receive the same amount as before the economic slump. The head of the organization knows that the regular donors are typically faithful with sending in their donations, but he is still surprised to find that the organization is not having any trouble meeting its donation goals.

Which of the following best explains the anomaly between the expected decline in charitable donations and the actual receipt?


(A) The wealthier members of society are generally the largest source of charitable donations, and they will always have extra money for non-profit organizations. Incorrect

this choice is extreme, during economic downturn their extra money can be decrease

(B) The charity made the decision to lower its expectations for donations, so the amount received was accurate, based on the adjustment for anticipated donations. Incorrect

contradicts with argument

(C) The charity is now receiving federal money, so the losses that it sustains during the economic downturn are covered under government subsidies. Incorrect

dont know about federal money, only know about donor; this choice support argument but cant explain

(D) People generally feel more obligated to give in a time of economic loss, even if they do not have as much disposable income as they do in a healthy economy. Incorrect

this choice cant ensure who fell obliged donate same amount

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness. Correct

better than D

I think answer is E
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By Choosing Option E are we not bound to assume that the charitable organization receives all of it's donations from organizations or people who usually give donations to the organization and no first and last donation organization has received from an individual.


Bunuel
Concerned about the ongoing downturn in the economy, the head of a large charitable organization recently began reviewing receipts to see how the economic problems have affected the donations that the organization has received. Much to his surprise, the amount received in donations has not changed at all—the charitable organization has continued to receive the same amount as before the economic slump. The head of the organization knows that the regular donors are typically faithful with sending in their donations, but he is still surprised to find that the organization is not having any trouble meeting its donation goals.

Which of the following best explains the anomaly between the expected decline in charitable donations and the actual receipt?


(A) The wealthier members of society are generally the largest source of charitable donations, and they will always have extra money for non-profit organizations.

(B) The charity made the decision to lower its expectations for donations, so the amount received was accurate, based on the adjustment for anticipated donations.

(C) The charity is now receiving federal money, so the losses that it sustains during the economic downturn are covered under government subsidies.

(D) People generally feel more obligated to give in a time of economic loss, even if they do not have as much disposable income as they do in a healthy economy.

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.
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sumitkrocks
By Choosing Option E are we not bound to assume that the charitable organization receives all of it's donations from organizations or people who usually give donations to the organization and no first and last donation organization has received from an individual.


Bunuel
Concerned about the ongoing downturn in the economy, the head of a large charitable organization recently began reviewing receipts to see how the economic problems have affected the donations that the organization has received. Much to his surprise, the amount received in donations has not changed at all—the charitable organization has continued to receive the same amount as before the economic slump. The head of the organization knows that the regular donors are typically faithful with sending in their donations, but he is still surprised to find that the organization is not having any trouble meeting its donation goals.

Which of the following best explains the anomaly between the expected decline in charitable donations and the actual receipt?


(A) The wealthier members of society are generally the largest source of charitable donations, and they will always have extra money for non-profit organizations.

(B) The charity made the decision to lower its expectations for donations, so the amount received was accurate, based on the adjustment for anticipated donations.

(C) The charity is now receiving federal money, so the losses that it sustains during the economic downturn are covered under government subsidies.

(D) People generally feel more obligated to give in a time of economic loss, even if they do not have as much disposable income as they do in a healthy economy.

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.

sumitkrocks, I'm not sure what you mean by the highlighted portion, but to answer the first part - no, we don't have to make such an assumption. The usual donors would be expected to contribute every year and if they have another strong incentive, they'd probably contribute even more, compensating for the unusual donors. Of course, the entire explanation could turn out to be incorrect. Perhaps, one outlier has made a humongous donation. Out of the 5 choices, this one definitely provides the best explanation (or at least, the best path forward to get to the core of this anomaly)
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I could narrow the options down to C and E.
Can anyone explain why C is incorrect?
Thanks in advance.
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Hi,
We don't have any information showing net tax deduction is beneficial to the donor?
In such case why can't we choose E
Bunuel
Bunuel
Concerned about the ongoing downturn in the economy, the head of a large charitable organization recently began reviewing receipts to see how the economic problems have affected the donations that the organization has received. Much to his surprise, the amount received in donations has not changed at all—the charitable organization has continued to receive the same amount as before the economic slump. The head of the organization knows that the regular donors are typically faithful with sending in their donations, but he is still surprised to find that the organization is not having any trouble meeting its donation goals.

Which of the following best explains the anomaly between the expected decline in charitable donations and the actual receipt?


(A) The wealthier members of society are generally the largest source of charitable donations, and they will always have extra money for non-profit organizations.

(B) The charity made the decision to lower its expectations for donations, so the amount received was accurate, based on the adjustment for anticipated donations.

(C) The charity is now receiving federal money, so the losses that it sustains during the economic downturn are covered under government subsidies.

(D) People generally feel more obligated to give in a time of economic loss, even if they do not have as much disposable income as they do in a healthy economy.

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.

OFFICIAL EXPLANATION



Overview:

The question focuses on a situation in which a large charitable organization is preparing for a reduction in donations due to the weakness in the economy. The author of the passage explains that the head of the charitable organization reviews the receipts and has discovered that the amount received in donations has not dropped at all. The head of the organization knows that his donors tend to be faithful in sending in their donations, but he is surprised to find that they are still able to give the same amount of money.

The question then asks the student to determine the answer choice that best explains the anomaly between the anticipated slump in charitable donations and the fact that the charitable organization is receiving the same amount as before the time of economic weakness. To select the correct answer, the student needs to locate an answer choice that provides a tangible and solid reason for why people would continue giving money to charities in spite of the economic downturn. The correct answer will not offer an insubstantial explanation: feeling cannot come into the equation, however applicable it to real-life decision making, because the Logical Reasoning sections of the test, by their very definition, require logic and not emotion.

The Correct Answer:

E Answer choice (E) provides the reason that is the clearest and most logical, if a bit forensic, for why people would continue to give the same amount to charitable organizations in spite of economic weakness: governments offer tax deductions for charitable donations, and people will continue to be motivated to receive tax deductions, especially during an economic downturn. Answer choice (E), therefore, is correct.

The Incorrect Answers:

A Answer choice (A) is too tenuous to be correct. While it is true that the wealthiest members of society probably weather an economic downturn better than those who have less, it is assuming too much that this alone would motivate them to continue donating to charity. What is more, there is not enough information in the passage to suggest that this particular charitable organization receives most of its money from wealthier members of society, so answer choice (A) does not offer a solid explanation. Answer choice (A) is incorrect.

B Answer choice (B) seems like a good possibility, except that the passage makes no mention of the charitable organization lowering its expectations. In fact, the passage indicates that the organization did not lower its expectations, owing to the surprise on the part of the organization’s head. Answer choice (B) contradicts important information in the passage, so it must be incorrect.

C It is certainly possible that the charitable organization has begun receiving government funding to continue to subsist. But the author of the passage indicates clearly that the receipt of the same amount of donations was unexpected, and the receipt of government funding would not be. Answer choice (C) cannot be correct.

D Answer choice (D) brings far too much feeling into the situation to be a solid explanation. In all reality, this might very well be a reason (and a poll might prove it to be true), but the student cannot deduce this from the information provided in the passage, nor can it function as a logical reason based on the requirements of the test. Answer choice (D) must be eliminated.
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IMO, (i might be thinking on wrong path), here my two cents from argument-

I picked "A"-later, what i understood from option is that 'they will always have extra money for non-profit organizations' doesn't specify whether this extra money will suffice to keep their donation at prior level or not. Hence, wrong.

But on a similar note-

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.

In "E", it says those who usually give in this, if regular or the usual ones are small donor and every year one giant company does the major donation (Every year a different giant company). Now in this scenario, their usual donor won't be able to hold the donation level at last year's level alone. They will require one major donor to take them to last year's level. hence, it won't resolve the paradox.
Bunuel
Concerned about the ongoing downturn in the economy, the head of a large charitable organization recently began reviewing receipts to see how the economic problems have affected the donations that the organization has received. Much to his surprise, the amount received in donations has not changed at all—the charitable organization has continued to receive the same amount as before the economic slump. The head of the organization knows that the regular donors are typically faithful with sending in their donations, but he is still surprised to find that the organization is not having any trouble meeting its donation goals.

Which of the following best explains the anomaly between the expected decline in charitable donations and the actual receipt?


(A) The wealthier members of society are generally the largest source of charitable donations, and they will always have extra money for non-profit organizations.

(B) The charity made the decision to lower its expectations for donations, so the amount received was accurate, based on the adjustment for anticipated donations.

(C) The charity is now receiving federal money, so the losses that it sustains during the economic downturn are covered under government subsidies.

(D) People generally feel more obligated to give in a time of economic loss, even if they do not have as much disposable income as they do in a healthy economy.

(E) Charitable donations function as tax deductions, so those who usually give to the charitable organization have strong incentive to give during economic weakness.
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