GMAT Changed on April 16th - Read about the latest changes here

It is currently 26 May 2018, 20:40

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

For decades the region's budget has slowly receded into a fiscal slump

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Senior Manager
Senior Manager
avatar
G
Joined: 26 Dec 2015
Posts: 280
Location: United States (CA)
Concentration: Finance, Strategy
WE: Investment Banking (Venture Capital)
For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 10 Jan 2018, 21:29
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

59% (01:22) correct 41% (01:33) wrong based on 245 sessions

HideShow timer Statistics

For decades the region's budget has slowly receded into a fiscal slump. The effects of the slump have been felt at every level of government because the government can no longer offer other jurisdictions the subsidies that it had been able to provide in the past. Therefore, to ease the fiscal burden the government must both look to trim expenditures, and stimulate new revenues.

The answer to which of the following questions would be most important in determining whether implementing the proposal would be likely to achieve the desired result?

A) Will the subsidies continue to be needed by local jurisdictions?

B) Will the subsidies by the government continue to be supported by the public?

C) Will the proposed measures stimulate the region's economy?

D) Are there enough non-essential items in the budget available to cut?

E) Is the region's economy headed for a future recession?
Senior Manager
Senior Manager
User avatar
G
Joined: 09 Mar 2017
Posts: 421
Location: India
Concentration: Marketing, Organizational Behavior
WE: Information Technology (Computer Software)
For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post Updated on: 17 Jan 2018, 02:44
If there is no scope for cutting down the expenses, trimming the expenses would not be possible. Hence, the proposal will not achieve its intended result.
-D-
_________________

------------------------------
"Trust the timing of your life"
Hit Kudus if this has helped you get closer to your goal, and also to assist others save time. Tq :)


Originally posted by TaN1213 on 13 Jan 2018, 12:39.
Last edited by TaN1213 on 17 Jan 2018, 02:44, edited 1 time in total.
Intern
Intern
avatar
B
Joined: 19 Aug 2017
Posts: 26
Re: For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 17 Jan 2018, 01:59
Can anyone explain why is option C wrong??

And why is option D correct?
1 KUDOS received
Manager
Manager
avatar
G
Joined: 30 Dec 2016
Posts: 159
Reviews Badge
For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 28 Jan 2018, 10:48
1
This post received
KUDOS
1
This post was
BOOKMARKED
MSarmah wrote:
Can anyone explain why is option C wrong??

And why is option D correct?


Hi MSarmah. Although i am no expert, here is my reason to eliminate C and choose D.

For decades the region's budget has slowly receded into a fiscal slump. The effects of the slump have been felt at every level of government because the government can no longer offer other jurisdictions the subsidies that it had been able to provide in the past. Therefore, to ease the fiscal burden the government must both look to trim expenditures, and stimulate new revenues.

The answer to which of the following questions would be most important in determining whether implementing the proposal would be likely to achieve the desired result?

We need to prove that cutting expenditures and stimulating new revenues will ease fiscal burden.

C) Will the proposed measures stimulate the region's economy?
lf we say "yes" the proposed measures stimulate the region's economy. But what about the moderation or pacifying fiscal budget?
Trim expenditure + Stimulate new revenues ---> Stimulate economy----> ?????
Will the stimulation of economy will ease out fiscal burden.? may be.. May be not.

D) Are there enough non-essential items in the budget available to cut?
D on the other hand is the required assumption. The author ,when recommending that cut the expenditures, is assuming that there are enough non essential items to cut.

_________________

Regards
SandySilva


____________
Hit kudos if my post helped (:

Manager
Manager
avatar
B
Joined: 11 Jun 2015
Posts: 58
Location: India
Concentration: Marketing, Leadership
GMAT 1: 620 Q46 V33
Re: For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 10 Mar 2018, 03:53
Can explain why E is wrong ? It is saying if the economy is headed for recession ? If its headed for recession there will be no means of generating new revenues
Intern
Intern
avatar
B
Joined: 13 Dec 2017
Posts: 7
Re: For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 10 Mar 2018, 12:45
I think the easiest way to eliminate option C) is that if you notice the argument carefully, no mention of economy has been made. That is what helped me rule out the validity of the statement, in addition to the fact that it has no bearing on the conclusion "Therefore, to ease the fiscal burden the government must both look to trim expenditures, and stimulate new revenues."

For option E), I applied the same logic, there is no mention of recession, neither in the argument, nor in the conclusion.

Option B) is clearly irrelevant because the argument makes no mention of the bearing the public's opinion might have on the entire matter. And option A) might confuse you with the fact that subsidies were provided to local jurisdictions, but it is important to notice here that this statement is just an effect of what the government has been doing in the past, and has been discontinued due to the fiscal slump. It is not an influential factor, just a side effect.

As mentioned earlier, D is the clear winner because it ties back to the conclusion of having to "trim expenditure".

Hope this helps.
Senior Manager
Senior Manager
avatar
G
Joined: 08 Jan 2018
Posts: 265
Location: United States (ID)
GPA: 3.33
WE: Accounting (Accounting)
GMAT ToolKit User
Re: For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 10 Mar 2018, 22:06
the OA is unconvincing. There are no right answers.
In fact, the negation of D does not help. => I am unsure whether "enough " is the key word, or "enough" just means "any"
2 KUDOS received
Board of Directors
User avatar
V
Status: Stepping into my 10 years long dream
Joined: 18 Jul 2015
Posts: 3472
Premium Member Reviews Badge CAT Tests
Re: For decades the region's budget has slowly receded into a fiscal slump [#permalink]

Show Tags

New post 11 Mar 2018, 04:13
2
This post received
KUDOS
renjana wrote:
Can explain why E is wrong ? It is saying if the economy is headed for recession ? If its headed for recession there will be no means of generating new revenues


Hey renjana ,

You need to understand this goal plan question well.

Goal: to ease the fiscal burden the government

Plan: Complete both of the following:
1. look to trim expenditures
2. Stimulate new revenues.

Now, I agree to your point regarding E. But if the economy is heading for a future recession, does that mean they won't be able to generate even a small penny while trimming alot of expenditures? They can, right? If they do, the conditions are met and hence we will be able to ease the burden.

But if I talk about D, if there isn't anything left to cut down anything, I am sure that 1st condition won't be met. Hence, I can't achieve my goal.

Does that make sense?
_________________

My GMAT Story: From V21 to V40
My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub
Verbal Resources: All SC Resources at one place | All CR Resources at one place

!NEW! Subscribe to Question of the Day Blog

Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free

Re: For decades the region's budget has slowly receded into a fiscal slump   [#permalink] 11 Mar 2018, 04:13
Display posts from previous: Sort by

For decades the region's budget has slowly receded into a fiscal slump

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.