GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 14 Oct 2019, 11:07

### 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

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

# Economist: Some critics of the media have contended

Author Message
TAGS:

### Hide Tags

Manager
Joined: 22 Jun 2017
Posts: 168
Location: Argentina
Schools: HBS, Stanford, Wharton
GMAT 1: 630 Q43 V34
Economist: Some critics of the media have contended  [#permalink]

### Show Tags

10 Feb 2019, 19:27
1
00:00

Difficulty:

55% (hard)

Question Stats:

57% (01:57) correct 43% (02:17) wrong based on 133 sessions

### HideShow timer Statistics

Economist: Some critics of the media have contended that negative news reports on the state of the economy can actually harm the economy because such reports damage people’s confidence in it, and this lack of confidence in turn adversely affects people’s willingness to spend money. But studies show that spending trends correlate very closely with people’s confidence in their own immediate economic situations. Thus these media critics are mistaken.

The economist’s argument is flawed in that it fails to consider the possibility that
(A) one’s level of confidence in one’s own economic situation affects how one perceives reports about the overall state of the economy
(B) news reports about the state of the economy are not always accurate
(C) people who pay no attention to economic reports in the media always judge accurately whether their own economic situation is likely to deteriorate or improve
(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations
(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned

_________________
The HARDER you work, the LUCKIER you get.
Intern
Joined: 15 Jan 2019
Posts: 13
Re: Economist: Some critics of the media have contended  [#permalink]

### Show Tags

12 Feb 2019, 22:54
Why the correct answer is D and not E?

Posted from my mobile device
SVP
Status: It's near - I can see.
Joined: 13 Apr 2013
Posts: 1685
Location: India
GPA: 3.01
WE: Engineering (Real Estate)
Re: Economist: Some critics of the media have contended  [#permalink]

### Show Tags

12 Feb 2019, 23:48
RaquelR1409 wrote:
Why the correct answer is D and not E?

Posted from my mobile device

Negative news about country's economy does not necessarily mean an ECONOMIC slowdown. Passage does not say anything about economic slowdown.

It talks about negative news that may come out because of several different reasons such as Corruption, Bad policies, Trade deficit, Low GDP etc
.
_________________
"Do not watch clock; Do what it does. KEEP GOING."
Senior Manager
Joined: 12 Jan 2019
Posts: 263
Re: Economist: Some critics of the media have contended  [#permalink]

### Show Tags

08 Mar 2019, 03:18
RaquelR1409 wrote:
Why the correct answer is D and not E?

Posted from my mobile device

(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned
According to it, if it media tells true negative news, than it will have overall positive impact on economy((importantly, non negative impact)) . And same thing is economist is saying, that impact will be non negative. And we need to find flw in it ie. we need to find how the impact will be negative.
so this option is wrong.

(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations
as a result of negative news, people will loose confidence, and thus, according to this option, they'll take a pessimistic view concerning their own immediate economic situations, which according to argument have negative impact.

_________________
In case my post helps you, please provide me with kudos. Thank you
SC Moderator
Status: GMAT - Pulling Quant and Verbal together
Joined: 04 Sep 2017
Posts: 237
Location: United States (OH)
GPA: 3.6
WE: Sales (Computer Software)
Economist: Some critics of the media have contended  [#permalink]

### Show Tags

09 Mar 2019, 12:02
1
1
patto wrote:
Economist: Some critics of the media have contended that negative news reports on the state of the economy can actually harm the economy because such reports damage people’s confidence in it, and this lack of confidence in turn adversely affects people’s willingness to spend money. But studies show that spending trends correlate very closely with people’s confidence in their own immediate economic situations. Thus these media critics are mistaken.

The economist’s argument is flawed in that it fails to consider the possibility that

The economist's argument is that the media critics are wrong. The media critics say that negative news on the economy can lead to damaging people's confidence in the economy. And that the lack of confidence in the economy leads to people not fueling the economy.

So where is the flaw in the economist's argument? Could negative news actually lead to damaging the economy?

(A) one’s level of confidence in one’s own economic situation affects how one perceives reports about the overall state of the economy

General statement. This does not imply that the Economist is wrong and the Media Critic's are correct... At least without making some major assumptions.
P.S. - I chose this one

(B) news reports about the state of the economy are not always accurate

Completely irrelevant. We are not concerned with the accuracy of the news. We are concerned with the behavior of people responding to negative economical news.

(C) people who pay no attention to economic reports in the media always judge accurately whether their own economic situation is likely to deteriorate or improve

Irrelevant. We are concerned with people who do pay attention to economic reports, specifically negative economic reports.

(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations

People who lack confidence in the economy have a lack of confidence in their immediate economic situations. So negative news could impact their "little" confidence in the economy, which could lead to these people not fueling the economy. This is in line with the Media Critic's argument and it does not align with the Economist's argument.

(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned

This is actually the opposite of the Media Critics' argument. So we can eliminate. This implies that if there is negative news going into a slowdown, that there will not be as much of a negative impact on the economy as there would be if there was not negative news. So basically, negative news helps the economy not tumble in a downturn.
_________________
Would I rather be feared or loved? Easy. Both. I want people to be afraid of how much they love me.

How to sort questions by Topic, Difficulty, and Source:
https://gmatclub.com/forum/search.php?view=search_tags
Economist: Some critics of the media have contended   [#permalink] 09 Mar 2019, 12:02
Display posts from previous: Sort by