Citing the fact that the real gross domestic product (GDP) per capita

Question

Citing the fact that the real gross domestic product (GDP) per capita was higher in 1997 than ever before, some  journalists  have argued that the United States economy performed ideally in 1997. However,  the real GDP is almost always higher than ever before ; it falls only during recessions. One point these journalists overlooked is that in 1997, as in the twenty-four years immediately preceding it, the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973. Were the 1997 economy as robust as claimed, the growth rate of real GDP per capita in 1997 would have surpassed the average growth rate of real GDP per capita between 1873 and 1973 because over fifty percent of the population worked for wages in 1997 whereas only forty percent worked for wages between 1873 and 1973. If the growth rate of labor productivity (output per hour of goods and services) in 1997 had equaled its average growth rate between 1873 and 1973 of more than two percent, then, given the proportionately larger workforce that existed in 1997, real GDP per capita in 1997 would have been higher than it actually was, since output is a major factor in GDP. However, because labor productivity grew by only one percent in 1997, real GDP per capita grew more slowly in 1997 than it had on average between 1873 and 1973.   1 
 1. The passage is primarily concerned with

(A) comparing various measures used to assess the performance of the United States economy in 1997
(B) providing evidence that the performance of the United States economy in 1997 was similar to its performance between 1873 and 1973
(C) evaluating an argument concerning the performance of the United States economy in1997
(D) examining the consequences of a popular misconception about the performance of the United States economy in 1997
(E) supporting an assertion made by journalists about the performance of the United States economy in 1997

2 
 2. According to the passage, which of the following is true of the average rate at which real GDP per capita grew in the twenty-four years immediately before 1997?

(A) It was less than it had been between 1873 and 1973 because only forty percent of the population worked for wages between 1873 and 1973.
(B) It was less than it had been between 1873 and 1973 because labor productivity grew less between 1973 and 1997 than it had between 1873 and 1973.
(C) It was less than it had been between 1873 and 1973 as a result of an increase in the percentage of the population earning wages during these years.
(D) It was less than the average rate at which real GDP per capita grew between 1873 and 1973.
(E) It was less than the rate at which real GDP per capita grew in 1997.

3 
 3. It can be inferred from the passage that which of the following is the reason that the author faults the  journalists  referred to in highlight text?

(A) They believe that the real GDP per capita in 1997 was higher than the real GDP per capita had ever been before.
(B) They argue that the rate at which real GDP per capita grew in 1997 was faster than the average rate at which it had grown between 1873 and 1973.
(C) They overestimate the effect of labor productivity on the real GDP per capita in 1997.
(D) They overestimate the amount by which real GDP per capita in 1997 surpassed real GDP per capita in earlier years.
(E) They fail to consider the real GDP per capita in 1997 within an appropriate historical context.

4 
 4. The author of the passage asserts that " the real GDP is almost always higher than ever before " (see highlighted text) most probably in order to

(A) show that a fact cited in support of a claim is inaccurate
(B) show that a fact cited in support of a claim actually contradicts the claim
(C) show that a fact cited in support of a claim does not prove the claim
(D) explain why a fact cited in support of a claim is relevant to the claim
(E) explain how the proponent of a claim selected a fact cited in support of the claim

WoundedTiger · Accepted Answer

Q3.It can be inferred from the passage that which of the following is the reason that the author faults the journalists referred to in highlight text?
Inferred means it is not very clearly stated in the passage but it is something that we can make out from the passage...

A.They believe that the real GDP per capita in 1997 was higher than the real GDP per capita had ever been before -----> Real GDP in value is high and is not disputed. 
B. They argue that the rate at which real GDP per capita grew in 1997 was faster than the average rate at which it had grown between 1873 and 1973 .-----> There is no argument but the author points out his opinion 
C. They overestimate the effect of labor productivity on the real GDP per capita in 1997. -----> Not really...The idea of LP is put forward by author to say why Real GPD growth should be higher than earlier period. 
D. They overestimate the amount by which real GDP per capita in 1997 surpassed real GDP per capita in earlier years .---->What Passage says is Real GDP is more than but there is no over estimation 
E. They fail to consider the real GDP per capita in 1997 within an appropriate historical context.---->  The author intends to point out that Real GDP is always more barring recession but what matters is whether the growth rate is more or not....
 
Ans is E

Rumikido3 · Answer

12 min taken :cry:

Lot of time spent on initial reading. 2/4 correct. 1 C 2 D 3 E (Incorrect) 4 A (Incorrect) Q3) The question ask about an inference about What journalist stated. I choose option A. This wrong because it is just restating what journalist said. So this is not and inference (a possible answer could be a paraphrased option about what journalist states E. Is correct because it is telling use that Journalist failed to consider historical evidence about US economy. "Some journalists have argued that the United States economy performed ideally in 1997. However, the real GDP is almost always higher than ever before; it falls only during recessions. One point these journalists overlooked is that in 1997, as in the twenty-four years immediately preceding it...." Then provides another point that why Journalist overlooked in the past between 1874 - 1974. Q4) The author of the passage asserts that "the real GDP is almost always higher than ever before" (see highlighted text) most probably in order to A. show that a fact cited in support of a claim is inaccurate. Incorrect In fact the author of the passage never contradicts the the Journalists' fact that in 1997, the real GDP was higher than before. He confirms that indeed the real GDP is almost always higher than ever before. So that fact in support of the claim that the US economy was stronger than ever is actually accuarate. C. show that a fact cited in support of a claim does not prove the claim. Correct! . By providing historical evidence, the author of the passage shows that the fact cited by journalists is irrelevant and doesn't prove the claim. I got stuck between A and C; finally choose A, but I was wrong. As stated above, I know now the reasons. Thanks Rumi

WoundedTiger · Answer

1. The passage is primarily concerned with
A. comparing various measures used to assess the performance of the United States economy in 1997
B. providing evidence that the performance of the United States economy in 1997 was similar to its performance between 1873 and 1973
C. evaluating an argument concerning the performance of the United States economy in1997
D. examining the consequences of a popular misconception about the performance of the United States economy in 1997
E. supporting an assertion made by journalists about the performance of the United States economy in 1997

The is Opinonated passage...It basically talks about why Journalist feeling that Economy did well is not correct because it the economy was doing really well then the economy should have grown faster than it did in the period from 1873-1973...

A,B,E are ruled out by Initially reading..
There is no examining of misconception...the passage just talks why the economy had to do really well because of better prevailing conditions than in given period

Ans C

WoundedTiger · Answer

According to the passage, which of the following is true of the average rate at which real GDP per capita grew in the twenty-four years immediately before 1997?
A. It was less than it had been between 1873 and 1973 because only forty percent of the population worked for wages between 1873 and 1973.
B. It was less than it had been between 1873 and 1973 because labor productivity grew less between 1973 and 1997 than it had between 1873 and 1973.
C. It was less than it had been between 1873 and 1973 as a result of an increase in the percentage of the population earning wages during these years.
D. It was less than the average rate at which real GDP per capita grew between 1873 and 1973.
E. It was less than the rate at which real GDP per capita grew in 1997.

According to the passage means something stated very clearly in the passage...We just need to go back to the passage and see where the subject of Average rate of GDP is discussed

Clear answer is D

A  ruled out because the passage says avg. growth rate should have been more because of more% population was working for wages 
B .Wrong period of 1973 to 1997 is looked at 
C. No.... Avg. rate should have been more and not less 
E.  The economy grew as it always does barring recession...There is no mention of the avg rate at which the economy grew from 1873 to 1997...But we do know that Economy grew 1.5% slowly in 1997 then it grew at Avg rate of 1873 to 1973...

WoundedTiger · Answer

4. The author of the passage asserts that "the real GDP is almost always higher than ever before" (see highlighted text) most probably in order to
A. show that a fact cited in support of a claim is inaccurate
B. show that a fact cited in support of a claim actually contradicts the claim
C. show that a fact cited in support of a claim does not prove the claim
D. explain why a fact cited in support of a claim is relevant to the claim
E. explain how the proponent of a claim selected a fact cited in support of the claim

A...Because the Journalists say that Real GDP is higher so Economy did well..Wheres as Author feels this is always the case barring recession so this is no proof that Economy did well...

JarvisR · Answer

My 2 cents..
Regards.
Time taken 8 mins.
1. The passage is primarily concerned with
C. evaluating an argument concerning the performance of the United States economy in1997
First the main point of argument is introduced and then the rest of the para explains that with historical data.
"However, the real GDP is almost always higher than ever before; it falls only during recessions. One point these journalists overlooked is that in 1997 ,as in the twenty-four years immediately preceding it, the real GDP per capita grew"

2. According to the passage, which of the following is true of the average rate at which real GDP per capita grew in the twenty-four years immediately before 1997?
D. It was less than the average rate at which real GDP per capita grew between 1873 and 1973.
"in the twenty-four years immediately preceding it, the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973"

3. It can be inferred from the passage that which of the following is the reason that the author faults the journalists referred to in highlight text?
E. They fail to consider the real GDP per capita in 1997 within an appropriate historical context.
"One point these journalists overlooked is that in 1997 ,as in the twenty-four years immediately preceding it, the real GDP per capita grew"

4. The author of the passage asserts that "the real GDP is almost always higher than ever before" (see highlighted text) most probably in order to
C. show that a fact cited in support of a claim does not prove the claim

bb61 · Answer

1. The passage is primarily concerned with

A. comparing various measures used to assess the performance of the United States economy in 1997
B. providing evidence that the performance of the United States economy in 1997 was similar to its performance between 1873 and 1973
 C. evaluating an argument concerning the performance of the United States economy in1997 
D. examining the consequences of a popular misconception about the performance of the United States economy in 1997
E. supporting an assertion made by journalists about the performance of the United States economy in 1997

2. According to the passage, which of the following is true of the average rate at which real GDP per capita grew in the twenty-four years immediately before 1997?

A. It was less than it had been between 1873 and 1973 because only forty percent of the population worked for wages between 1873 and 1973.
B. It was less than it had been between 1873 and 1973 because labor productivity grew less between 1973 and 1997 than it had between 1873 and 1973.
C. It was less than it had been between 1873 and 1973 as a result of an increase in the percentage of the population earning wages during these years.
D. It was less than the average rate at which real GDP per capita grew between 1873 and 1973.
 E. It was less than the rate at which real GDP per capita grew in 1997.

3. It can be inferred from the passage that which of the following is the reason that the author faults the journalists referred to in highlight text?

A. They believe that the real GDP per capita in 1997 was higher than the real GDP per capita had ever been before.
B. They argue that the rate at which real GDP per capita grew in 1997 was faster than the average rate at which it had grown between 1873 and 1973.
C. They overestimate the effect of labor productivity on the real GDP per capita in 1997.
D. They overestimate the amount by which real GDP per capita in 1997 surpassed real GDP per capita in earlier years.
 E. They fail to consider the real GDP per capita in 1997 within an appropriate historical context.

4. The author of the passage asserts that "the real GDP is almost always higher than ever before" (see highlighted text) most probably in order to

A. show that a fact cited in support of a claim is inaccurate
B. show that a fact cited in support of a claim actually contradicts the claim
 C. show that a fact cited in support of a claim does not prove the claim 
D. explain why a fact cited in support of a claim is relevant to the claim
E. explain how the proponent of a claim selected a fact cited in support of the claim

Skywalker18 · Answer

Total time is 8 mins 50 seconds , including 2 mins 10 seconds to read the passage .
-The author presents a claim made by some journalists about the GDP of the United States in 1997
- The author then evaluates whether the claim is a valid claim or not

1 . evaluating an argument concerning the performance of the United States economy in 1997
Answer C

2. “the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973"
The above excerpt exactly matches option (D) and is hence correct.

3.
“ However, the real GDP is almost always higher than ever before; it falls only during recessions. One point these journalists overlooked is that in 1997, as in the twenty-four years immediately preceding it, the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973"

The above shows that the journalists failed to consider the real GDP per capita in 1997 within a historical context. Hence option (E) is the right answer choice.

4. C. show that a fact cited in support of a claim does not prove the claim

GMATNinja · Answer

Some journalists have argued that the US economy performed ideally in 1997. Those journalists base their argument on the fact that real GDP per capita was higher in 1997 than ever before. The author does not dispute this fact. The author does, however, dispute the conclusion drawn by the journalists based on that fact.

The author of the passage responds to the journalists' argument by stating that real GDP is almost ALWAYS higher than ever before. In other words, unless there is a recession, the real GDP continues to grow. This growth does not necessarily mean that the economy is getting  better . Thus, just because real GDP per capita was higher in 1997 than ever before does NOT necessarily mean that the economy performed better than it ever has.

This fits with choice (C): "The author of the passage asserts that 'the real GDP is almost always higher than ever before' most probably in order to (C) show that a fact cited in support of a claim does not prove the claim."

The fact cited is that real GDP per capita was higher in 1997 than ever before, and the claim is that the US economy performed ideally in 1997.

I hope this helps!

Shivikaa · Answer

Hi, 
Please explain the solution for Q3 and Q4. On what basis have we concluded it. ?
Thanks in advance.

GMATNinja · Answer

These two questions are related, so first please review  this post  explaining question 4. This explanation is applicable to question 3 as well. The journalists have argued that the US economy performed ideally in 1997. Why did they make that argument? Because the real GDP per capita was higher in 1997 than ever before. As explained in the post below, just because the real GDP was higher in 1997 than ever before does NOT necessarily mean that the economy performed better than it ever has.

In order to fully analyze the data, we need to look at other factors such as the  growth rate  of real GDP per capita, growth rate of  labor productivity , and the percentage of the population working for wages. One needs to look at all of these factors and compare the 1997 numbers to the historical data (i.e. 1873 - 1973). Doing so would allow you to consider the 1997 real GDP per capita within the appropriate  historical context . The journalists failed to do so. Instead, they simply said, "The real GDP was highest in 1997, so the economy must have performed ideally that year!" The journalists didn't look at the entire picture (i.e. historical context). They looked at one piece of data and jumped to a conclusion.

See if that helps! To post additional questions not already addressed in this thread, please use the  request verbal experts' reply  button.

Will2020 · Answer

GMATNinja Can you help me out with question 2? Why A and E are wrong? Many tks!

shabuzen102 · Answer

Would someone please explain why question 2's answer is not B:
"It was less than it had been between 1873 and 1973 because labor productivity grew less between 1973 and 1997 than it had between 1873 and 1973."

It is true that it was 1.5% slower than it had been between 1873 and 1973.
It is also true that it was because the slow growth rate of labor productivity. Without such slow growth rate of labor productivity, the growth rate of real GDP would have surpassed that between 1873 and 1973:

"However, because labor productivity grew by only one percent in 1997, real GDP per capita grew more slowly in 1997 than it had on average between 1873 and 1973."

We also know that the 24 years preceding it, the rate had been the same: 
"One point these journalists overlooked is that in 1997,   as   in the twenty-four years immediately preceding it...."

Thank you!

GMATNinja · Answer

Question 2 
 
And here's where the passage mentions the average growth rate of real GDP per capita between 1973-1997:

"One point these journalists overlooked is that in 1997,  as in the twenty-four years immediately preceding it , the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973."

In other words:

Rate during 1997 < rate during 1873-1973 
 Rate during 1973-1997 < rate during 1873-1973

This is a spot-on match for choice (D):

Now, what's up with choices (A) and (E)?

The first half of choice (A) replicates what was correct about choice (D). But the second half of this choice misrepresents the passage. Here's what the passage says:

"Were the 1997 economy as robust as claimed, the growth rate of real GDP per capita in 1997 would have surpassed the average growth rate of real GDP per capita between 1873 and 1973 because over fifty percent of the population worked for wages in 1997 whereas only forty percent worked for wages between 1873 and 1973."

Here, the author is NOT telling us that the lower growth rate  was caused by  the fact that 40% of the population working for wages during 1873-1973. The author is presenting  what a robust economy would have looked like  — and references the % of population working for wages to support that hypothetical scenario of a "robust" economy (NOT the observed growth rate in real GDP per capita).

That's why we eliminate (A). Now, let's take one more look at (E):

Again, here's what the passage tells us:

"...in 1997,  as in the twenty-four years immediately preceding it , the real GDP per capita grew nearly one-half percent a year more slowly than it had on average between 1873 and 1973."

First, the author never tells us that the rate during 1973-1997 < rate during 1997. Second, the author implies here that the 1997 growth rate was the same as it was during 1973-1997. This actually contradicts choice (E)! For these reasons, we should eliminate that choice as well.

Choice (D) is the only one that accurately reflects the passage. I hope this helps!

GMATNinja · Answer

Careful with your reading here! The passage states that "real GDP per capita grew nearly one-half percent more slowly" — that's just under 0.5%, not 1.5%.

Again, be careful as you read. The passage tells us that  the average growth rate in real GDP per capita  was the same in 1997 as it was during the 24 years immediately before 1997.

However,  this rate is a completely different measurement than "labor productivity."  Labor productivity is defined here as "output per hour of goods and services" — in other words, GDP  per hour worked , which is NOT equal to GDP  per capita . The same goes for average growth rates in productivity; they are not the same as average growth rates in GDP per capita.

The passage only mentions labor productivity measured  during 1997  and  from 1873-1973 . We know nothing about labor productivity from 1973-1997. We also have no idea if completely different factors (e.g. international competition, lack of consumer confidence, or anything else besides labor productivity) could have contributed to a lower growth rate in real GDP  per capita  during this time period.

The information just isn't available for us to infer the  cause  of the average growth rate in GDP per capita being lower from 1973-1997 than it was from 1873-1973. That's why we eliminate choice (B).

(D) remains the only choice that can wholly be inferred from the passage itself.

I hope that helps!

Kai10 · Answer

Could anyone please explain why Q3 answer (A) is incorrect?

3. It can be inferred from the passage that which of the following is the reason that the author faults the journalists referred to in highlight text?

(A) They believe that the real GDP per capita in 1997 was higher than the real GDP per capita had ever been before.

GMATNinja · Answer

Question 3 
 
Before we take a look at why (A) is not the correct answer to this question, have a look at  this post  and  this post  for breakdowns of the passage that are relevant to this question.

Now take a look at (A) for question 3:
 
The author doesn't FAULT the journalists for saying this, he/she actually AGREES with them, as you can see by this bit of the passage:

...the real GDP is almost always higher than ever before; it falls only during recessions.  
What the author does is disagree with the conclusions the journalists take from this fact -- this is what is in the rest of the passage.

Since the author does not criticize the journalists for stating that the real GDP per capita in 1997 was higher than the real GDP per capita had ever been before, (A) cannot be the correct answer.

Compare this to (E):
 
As explained in the posts linked above, the key thing to notice in this passage is just because the real GDP was higher in 1997 than ever before does NOT necessarily mean that the economy performed better than it ever has. The journalists are criticized because they didn't look at the entire picture (i.e. historical context). They looked at one piece of data and jumped to a conclusion -- this is why (E) is the correct answer.

I hope that helps!

UserMaple5 · Answer

Hi  GMATNinja

I picked C for this question, but was tempted by Choice B as well during the test. My ultimate reason for choosing C over B was that the author's comment about the increase in Real GDP does not CONTRADICT the claims of the journalist. Rather it just explains how the impact is muted given that the Real GDP almost always increases. Am I on the right track with my thinking here? Thank you

GMATNinja · Answer

Question 4 
 
Yes, you're on the right track!

The journalists use the fact about the higher-than-ever GDP to conclude that the US economy "performed ideally" in 1997.

The author attacks this chain of logic, saying that the GDP is almost ALWAYS higher than ever. He/she's essentially saying, "So what? There's nothing special about 1997, because that fact is true in most other years as well."

It's entirely possible that, to say that the economy is "ideal," you DO need the GDP to be higher than ever -- the author just thinks that this one fact isn't a particularly high bar to meet. So, it wouldn't be accurate to say that the author think the fact  contradicts  the journalists' conclusion.

(C) is a much better fit -- the author's point is that the GDP fact doesn't do much to  prove  that 1997 was an "ideal" year.

You can eliminate (B), and (C) is the correct answer to question 4.

I hope that helps!

Citing the fact that the real gross domestic product (GDP) per capita

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Citing the fact that the real gross domestic product (GDP) per capita

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