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# Concerned about the ongoing downturn in the economy, the head of a lar

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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
D? I think as it gives a valid reason.

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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
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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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
In my opinion answer should be E
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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
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

(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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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
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 wrote:
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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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
sumitkrocks wrote:
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 wrote:
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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Re: Concerned about the ongoing downturn in the economy, the head of a lar [#permalink]
I could narrow the options down to C and E.
Can anyone explain why C is incorrect?