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In 1980, Country A had a per capita gross domestic product (GDP) that

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In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post Updated on: 21 Jan 2019, 04:22
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A
B
C
D
E

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Question Stats:

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In 1980, Country A had a per capita gross domestic product (GDP) that was $5,000 higher than that of the European Economic Community. By 1990, the difference, when adjusted for inflation, had increased to $6,000. Since a rising per capita GDP indicates a rising average standard of living, the average standard of living in Country A must have risen between 1980 and 1990.

Which one of the following is an assumption on which the argument depends?


(A) Between 1980 and 1990, Country A and the European Economic Community experienced the same percentage increase in population.

(B) Between 1980 and 1990 the average standard of living in the European Economic Community fell.

(C) Some member countries of the European Economic Community had, during the 1980s, a higher average standard of living than Country A.

(D) The per capita GDP of the European Economic Community was not lower by more that $1,000 in 1990 than it had been in 1980.

(E) In 1990, no member country of the European Economic Community had a per capita GDP higher than that of Country A.


Source: Powerscore CR Bible

Originally posted by gmacvik on 11 Feb 2007, 13:09.
Last edited by Bunuel on 21 Jan 2019, 04:22, edited 2 times in total.
Renamed the topic and edited the question.
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post 11 Feb 2007, 13:38
NC you are too fast and too accurate. YOu are definitely a 750+ candidate. Your answers to my preivious 2 CRs are proof of that. Your CR reasonings are amazing.

Could you elaborate your reasoning for choosing D and for not choosing A? I was stuck between A and D and couldn't understand the logic behind " not more that $1000" in D

thanks
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post Updated on: 11 Feb 2007, 20:03
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Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=1999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when false provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.

Originally posted by ncp on 11 Feb 2007, 14:19.
Last edited by ncp on 11 Feb 2007, 20:03, edited 2 times in total.
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post 11 Feb 2007, 17:45
ncprasad wrote:
Thanks gmacvik for your compliment. I am taking the GMAT in 7 days and need all the luck and practice, I can get.

I did consider A, but remember that we are comparing per capita GDP(GDP per person). It does not matter what the actual population numbers are, because we are only comparing the average GDP.

Makes sense?

In 1980

Per capita GDP of EU=3000
Per capita GDP of A=8000

Lets say that in 1990, this value dropped by more than 1000 for EU. Then,
Per capita GDP of EU=2999.

Also, lets assume that the per capita GDP of A did not change.

Then, Difference in GDP=6001.

Assuming an appropriate inflation rate, the adjusted difference is 6000.

We can clearly see that D when true provides a possibility for the increase in the difference without any change(or even with a decrease) in per capita GDP of country A.

Thus D must be true, to make the conclusion in the argument.


I agree. ncprasad, you are killing on verbal. You will do great on the test.

I initially went for A, I completely missed the "per capita" part of the stem. Kicking myself! They want me to miss that.

So D works because if it is true that the EC per capita GDP decreased by more than 1000 and Country A per capita GDP stayed the same, then standard of living in Country A would not have improved and the argument then falls apart, so this must be the assumption.

Is this a correct analysis of D (in my own words)?
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Re: Really tough one from Powerscore CR Bible. Try this. EEC  [#permalink]

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New post 25 May 2010, 19:47
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Its D,

logic being.

Lets assume there are 2 numbers A and B . The difference between them is 5.
A- B = 5.

after say some mathematical operation the difference became 6
A-B = 6.

So, the difference rose by 1. Now this is only possible in 2 cases.

either A increased or B decreased.

Only way A could have increased is incase B either remained constant or the decrease in B was less than 1.

So D holds true, if the GDP of Eu was not lower than 1000 in 1990 then that means there was some increase in GDP of country A and so the standard of living improved.
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Re: Really tough one from Powerscore CR Bible. Try this. EEC  [#permalink]

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New post 30 May 2010, 22:25
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The answer D although is the best correct one, it has some flaw in reasoning.
Answer D says that GDP per capita in EU did not decrease by no more than $1 000 in 1990 than in 1990.

If the decrease was lower than $1000, the assumption would hold perfectly true, since for 6000 increase in difference to hold true, at most $999 drop in GDP per capita of EU is necessary at worst case scenario.
The answer D assumes that the drop in GDP per capita in EU could be straight $1000
Thus let's say GDP per capita in 1980 in country A was $ 6000 and in EU $ 1000
Then let's say in 1990 it was still $6000 for Country A and EU's GDP per capita dropped to zero! (We can assume that from answer D). The conclusion that living standards improved in country A will not hold true then, as u can see from my example.

D is the best answer but it has the above mentioned flaw, what do u guys think?
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post 28 Oct 2012, 06:33
Have a query
Since option D reads "not lower than more than a 1000" what if EU per captia GDP fell by exactly 1000, in that case the difference would be 6000 even if Country A's per capita GDP remained constant (Hence there would be no increase in std of living)
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post 01 Apr 2014, 23:51
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karun0109 wrote:
Have a query
Since option D reads "not lower than more than a 1000" what if EU per captia GDP fell by exactly 1000, in that case the difference would be 6000 even if Country A's per capita GDP remained constant (Hence there would be no increase in std of living)


When u adjust something for inflation, u increase the value. So Constant GDP is not the issue here. U have to think that GDP of A has gone up.
Since GDP of A has risen and gap also GDP of EU can't go down by more than 1000.

Example= A-9000, EU-4000
Inflation adjustment say - A has become- 9001.
So to make the difference exactly 6000 Eu GDP will be 3001.
Now look at the difference- 4000-3001=999.
There is no way to be more than 1000 lower GDP in case of EU.

Hope it is clear.
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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New post 25 Feb 2018, 11:30
A is incorrect even though A sounds reasonable. Nevertheless, A already counts the population.
D is right b/c D tells that GDP did not decrease, but the gap still increases.
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Re: In 1980, Country A had a per capita gross domestic product (GDP) that  [#permalink]

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Re: In 1980, Country A had a per capita gross domestic product (GDP) that   [#permalink] 13 Apr 2019, 05:54
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