It is currently 20 Nov 2017, 20:07

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Economist: Some policymakers believe that our country s

Author Message
TAGS:

### Hide Tags

Director
Joined: 29 Jul 2006
Posts: 851

Kudos [?]: 143 [0], given: 0

Economist: Some policymakers believe that our country s [#permalink]

### Show Tags

16 Mar 2007, 10:35
00:00

Difficulty:

(N/A)

Question Stats:

50% (02:32) correct 50% (00:00) wrong based on 6 sessions

### HideShow timer Statistics

Economist: Some policymakers believe that our countryâ€™s continued economic growth requires a higher level of personal savings than we currently have. A recent legislative proposal would allow individuals to set up savings accounts in which interest earned would be exempt from taxes until money is withdrawn from the account. Backers of this proposal claim that its implementation would increase the amount of money available for banks to loan at a relatively small cost to the government in lost tax revenues. Yet, when similar tax-incentive programs were tried in the past, virtually all of the money invested through them was diverted from other personal savings, and the overall level of personal savings was unchanged.

The author criticizes the proposed tax-incentive program by

(A) challenging a premise on which the proposal is based
(B) pointing out a disagreement among policymakers
(C) demonstrating that the proposalâ€™s implementation is not feasible
(D) questioning the judgment of the proposalâ€™s backers by citing past cases in which they had advocated programs that have proved ineffective
(E) disputing the assumption that a program to encourage personal savings is needed

Kudos [?]: 143 [0], given: 0

 Economist GMAT Tutor Discount Codes EMPOWERgmat Discount Codes Optimus Prep Discount Codes
Manager
Joined: 07 Feb 2007
Posts: 212

Kudos [?]: 15 [0], given: 0

### Show Tags

16 Mar 2007, 17:34
Vote A. The author does not believe that the special accounts will improve the amount of saving.

Kudos [?]: 15 [0], given: 0

Director
Joined: 29 Jul 2006
Posts: 851

Kudos [?]: 143 [0], given: 0

### Show Tags

16 Mar 2007, 22:36
Tha proposal is not based on what the backers' say.They are just giving their opinion...I think D should be the answer??

Kudos [?]: 143 [0], given: 0

Director
Joined: 24 Aug 2006
Posts: 743

Kudos [?]: 208 [0], given: 0

Location: Dallas, Texas

### Show Tags

17 Mar 2007, 01:05
No brainer : D
_________________

"Education is what remains when one has forgotten everything he learned in school."

Kudos [?]: 208 [0], given: 0

Senior Manager
Joined: 24 Sep 2006
Posts: 272

Kudos [?]: 46 [0], given: 0

### Show Tags

17 Mar 2007, 08:13
I think it is A

Backers of this proposal claim that its implementation would increase the amount of money available for banks to loan

The author challenges the above
_________________

AimHigher

Kudos [?]: 46 [0], given: 0

Director
Joined: 29 Jul 2006
Posts: 851

Kudos [?]: 143 [0], given: 0

### Show Tags

19 Mar 2007, 08:42
Whats wrong with D??

Kudos [?]: 143 [0], given: 0

Manager
Joined: 01 Mar 2005
Posts: 56

Kudos [?]: 3 [0], given: 0

### Show Tags

19 Mar 2007, 11:20
vineetgupta wrote:
Whats wrong with D??

D says that the author is specifically criticizing the backers of the proposal by pointing out other programs where their judgement has been wrong.

In the passage, the author points out that programs similar to the one proposed have been wrong - he says nothing about other programs the backers have supported in the past being wrong.

It's the difference between saying: "The backers support X. But X has been wrong in the past, so X is wrong now" and "The backers support X. But the backers have been wrong about Y and Z in the past, so they must be wrong about X."

I think the answer is A. The author is challenging the idea that offering the plan will increase the amount of savings. What is the OA?

Kudos [?]: 3 [0], given: 0

Senior Manager
Joined: 01 Feb 2005
Posts: 270

Kudos [?]: 112 [0], given: 1

### Show Tags

19 Mar 2007, 11:52
I thought of D as well. Although I was a lil confused with the last line. Can someone help me understand the last line?

Thanks

Kudos [?]: 112 [0], given: 1

Manager
Joined: 26 Feb 2007
Posts: 110

Kudos [?]: 2 [0], given: 0

### Show Tags

19 Mar 2007, 12:33
One and only D.

Kudos [?]: 2 [0], given: 0

Manager
Joined: 07 Feb 2007
Posts: 212

Kudos [?]: 15 [0], given: 0

### Show Tags

19 Mar 2007, 17:18
Hey guys.

Without any other reasonings, D is a fallacy in concluding that because the past proposals were useless so the new proposal is also.

Kudos [?]: 15 [0], given: 0

Senior Manager
Joined: 29 Jan 2007
Posts: 439

Kudos [?]: 69 [0], given: 0

Location: Earth

### Show Tags

20 Mar 2007, 15:19
I also go with D. Seems quite obvious to me. Not sure of I am not thinking enough.

Whats OA?

Kudos [?]: 69 [0], given: 0

Manager
Joined: 22 Feb 2007
Posts: 164

Kudos [?]: 18 [0], given: 0

### Show Tags

21 Mar 2007, 06:04
I'll go with A

The backers of Legislative proposal base their support to the proposal based on a premise that implementation of the proposal would increase the amount of money available for banks to loan at a relatively small cost to the government in lost tax revenues.

The economist cites a specific example where such effect has not been observed. Thus, he questions the premise on which the proposal is based.

The economist does not directly question the judgment of the proposalâ€™s backers. Hence D cannot be the answer.

I found this one tough...

Kudos [?]: 18 [0], given: 0

Manager
Joined: 15 Nov 2006
Posts: 216

Kudos [?]: 80 [0], given: 0

Location: Ohio

### Show Tags

21 Mar 2007, 18:04
I will go with A.

What is OA?

Kudos [?]: 80 [0], given: 0

Senior Manager
Joined: 11 Feb 2007
Posts: 350

Kudos [?]: 186 [0], given: 0

### Show Tags

21 Mar 2007, 18:28
I would go with A.

The purpose of the proposal is to increase the amount of personal savings (i.e. banks have more money to lend) but the author at the end refutes that a similar proposal (with seemingly similar purpose) failed because "the overall level of personal savings was unchanged."

Although it did not explicity say that the similar proposal in the past was a "failure", we can infer that it did not achieve its goal from the use of the word "yet" to introduce it.

Kudos [?]: 186 [0], given: 0

Director
Joined: 29 Jul 2006
Posts: 851

Kudos [?]: 143 [0], given: 0

### Show Tags

22 Mar 2007, 00:52
Thanks guys...the OA is A.

Kudos [?]: 143 [0], given: 0

Manager
Joined: 05 Oct 2016
Posts: 172

Kudos [?]: 30 [0], given: 11

Location: China
Concentration: Healthcare, Entrepreneurship
WE: Sales (Health Care)
Re: Economist: Some policymakers believe that our country s [#permalink]

### Show Tags

16 Oct 2016, 06:13
OA is A I also go with D but after reread the D I found the author didn't question the judgement of the backers so I think that's the reason A is correct.
_________________

LSAT CR is driving me mad

Kudos [?]: 30 [0], given: 11

Re: Economist: Some policymakers believe that our country s   [#permalink] 16 Oct 2016, 06:13
Display posts from previous: Sort by