Last visit was: 03 Nov 2024, 15:40 It is currently 03 Nov 2024, 15:40
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
User avatar
parkhydel
Joined: 03 Jun 2019
Last visit: 28 Oct 2024
Posts: 220
Own Kudos:
12,961
 [49]
Given Kudos: 54
Posts: 220
Kudos: 12,961
 [49]
4
Kudos
Add Kudos
45
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
Arjun123321
Joined: 25 Mar 2024
Last visit: 03 Nov 2024
Posts: 16
Own Kudos:
12
 [6]
Given Kudos: 83
Location: India
GMAT Focus 1: 595 Q79 V82 DI77
GPA: 8.5
Products:
GMAT Focus 1: 595 Q79 V82 DI77
Posts: 16
Kudos: 12
 [6]
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 03 Nov 2024
Posts: 15,427
Own Kudos:
69,248
 [6]
Given Kudos: 446
Location: Pune, India
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 15,427
Kudos: 69,248
 [6]
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
General Discussion
User avatar
Sb1131
Joined: 06 Aug 2023
Last visit: 22 Feb 2024
Posts: 46
Own Kudos:
Given Kudos: 77
Posts: 46
Kudos: 22
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Sajjad1994 , can you please post explanation for Q1, I see the max jump of around 10 in 1996-97 , and that is one of the 3 years in the given option.Not sure why this is wrong.Thanks :D
User avatar
Apoorvisb
Joined: 07 Sep 2023
Last visit: 14 Feb 2024
Posts: 14
Own Kudos:
1
 [1]
Posts: 14
Kudos: 1
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
because if you see the graph the greatest change happened in 1998 and graph was alost straight from 1995 to 1997.
User avatar
Runjhun26
Joined: 22 Sep 2023
Last visit: 17 Mar 2024
Posts: 16
Own Kudos:
13
 [1]
Given Kudos: 29
Posts: 16
Kudos: 13
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Sajjad1994 Please share the explanation to questions 2 & 3
User avatar
nazii
Joined: 29 Oct 2021
Last visit: 12 Jan 2024
Posts: 59
Own Kudos:
37
 [1]
Given Kudos: 279
Posts: 59
Kudos: 37
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Question 3
B. is referring to year 1993: we can see that farmers received the largest average amount of private funds in this year. Moreover, FPP has not yet been introduced and its amount is zero.
so, the year 1993, in which farmers received the largest fund, was earlier than the year in which the FPP was Introduced (after 1994, the chart for FPP is increasing and starting)
User avatar
nazii
Joined: 29 Oct 2021
Last visit: 12 Jan 2024
Posts: 59
Own Kudos:
37
 [1]
Given Kudos: 279
Posts: 59
Kudos: 37
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Question 1
in order to solve the questions in this section I used TAB: TRENDS and I used the trends in the lines
a. answer is NO. Looking at the graph for non-farmers , the value for 1995 is 60 and for 1997 is 70. So, we see it has changed
b. looking at graph for average private funds received by farmers 1995-1997, I see no change in the trend, it is quite stable, let a lone great change! So, again answer is NO.
C, this part , I checked the tab: Statistical Table: in the first row, Per capita income among farmers ages 66 and up : by comparing the value (109733 & 109868) I can see no change, so, answer is YES
avatar
MihirBathia
Joined: 04 Jul 2023
Last visit: 03 Nov 2024
Posts: 45
Own Kudos:
Given Kudos: 117
Posts: 45
Kudos: 15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Sajjad1994
Attachment:
3.jpg
Attachment:
2.jpg
need help with this set, please post solutions and explanations
User avatar
curiousPope
Joined: 07 Jan 2024
Last visit: 03 Nov 2024
Posts: 53
Own Kudos:
Given Kudos: 69
Posts: 53
Kudos: 11
Kudos
Add Kudos
Bookmarks
Bookmark this Post
does anyone have explanation to this question?
Thanks
User avatar
Robo_123
Joined: 30 Jan 2024
Last visit: 03 Nov 2024
Posts: 30
Own Kudos:
9
 [1]
Given Kudos: 23
Location: India
Concentration: Marketing, Finance
GMAT Focus 1: 645 Q84 V81 DI80
GPA: 7.8
Products:
GMAT Focus 1: 645 Q84 V81 DI80
Posts: 30
Kudos: 9
 [1]
Kudos
Add Kudos
Bookmarks
Bookmark this Post
­Hi KarishmaB could you please explain this.
1. For each of the following statements about the effects of the FPP, select Yes if the statement accurately reflects the information provided. Otherwise select No.YesNo Average private funds received by nonfarmers did not change during the first three years of the program (1995-1997).The greatest change in average private funds received by farmers in a single year occurred during the first three years of the program (1995-1997).Per capita income among farmers ages 66 and up, not including FPP payments or private funds received, was little affected by the introduction of the FPP.
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 03 Nov 2024
Posts: 15,427
Own Kudos:
69,248
 [4]
Given Kudos: 446
Location: Pune, India
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 15,427
Kudos: 69,248
 [4]
2
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
The question discusses crowding out - when Taiwan farmers were given pension, how much reduction did they see in the amount they got from their children?
Did their children feel that now the parents have enough money so they didn't need to help out or did the children continue the same support such that parents earning increased due to pension?

The study compared data from 1990 to 2001 for two groups:
- Old Farmers who received FPP benefits beginning in 1995
- Old Nonfarmers who did not receive FPP benefits.

Results from the study:
- Significant but incomplete crowding out in that one FPP dollar replaced 30 to 39 cents of private funds. So for every $1 that farmers got as pension, the children reduced the amount they gave their parents by 30 to 39 cents. So if farmers got $100 as pension, their children started reducing the money they gave them by $30 to $39.
- A significant, positive effect of the FPP on recipients' household consumption spending. Farmers started spending more after getting pension.

1. For each of the following statements about the effects of the FPP, select Yes if the statement accurately reflects the information provided. Otherwise select No.

Average private funds received by nonfarmers did not change during the first three years of the program (1995-1997).

Funds received by non farmers in 95 - 97 are shown only in tab 3. From 96 to 97, the private funds received by non farmers increased (from 60 to 70)

ANSWER: NO

The greatest change in average private funds received by farmers in a single year occurred during the first three years of the program (1995-1997).

Again in tab 3, from 95 to 97, the private funds received by farmers did not change at all (solid squares represent private funds received by farmers). They stayed steady at 60.

ANSWER: NO

Per capita income among farmers ages 66 and up, not including FPP payments or private funds received, was little affected by the introduction of the FPP.

Per capita income is given in tab 2. It does not include FPP and pension. So this could be income from their jobs or assets say from farming, from their bank deposits etc.
For farmers, per capita income was 109,733 in 90-94 and 109,868 from 99-01. Hence the per capita income before and after the program did not change.
ANSWER: YES
­
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 03 Nov 2024
Posts: 15,427
Own Kudos:
69,248
 [2]
Given Kudos: 446
Location: Pune, India
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 15,427
Kudos: 69,248
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
3. Which one of the following statements about the FPP study receives the strongest support from the information provided?

The year in which the farmers included in the study received the smallest average amount of private funds was the same year in which the nonfarmers received the largest average amount of private funds.

Private funds received are shown in tab 3.
year in which the farmers included in the study received the smallest average amount of private funds - 1998
year in which the nonfarmers received the largest average amount of private funds - 2001

Incorrect.

The year in which the farmers included in the study received the largest average amount of private funds was earlier than the year In which the FPP was Introduced.

year in which the farmers included in the study received the largest average amount of private funds - 1993
FPP was introduced in 1995.
So this is correct. There are no two ways about it. Hence mark the answer here and move on in the actual exam.

ANSWER

For every year included in the graph, average private funds received by the farmers included in the study exceeded average FPP payments by at least NT$15,000.

Not true. In 1999, FPP payments were about 48k (certainly more than 45k) and private funds received were 60k.

The average FPP payment to farmers increased every year included in the study.

Not correct. It decreased in 2000 compared with 1999.

The increase in per capita consumption by nonfarmers is a direct consequence of FPP funding to farmers.

We don't know why per capita consumption of nonfarmers increased. We have no data on the reason behind the increase.




­
User avatar
DUMDUM21
Joined: 12 Jan 2020
Last visit: 21 Oct 2024
Posts: 23
Own Kudos:
Given Kudos: 19
Location: India
Concentration: Finance, Economics
GPA: 3.6
WE:Consulting (Consulting)
Products:
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Question 3
B. year in which the farmers included in the study received the Largest amount of private funds - 1993;
Note the key word here is EARLIER NOT PREVIOUS
so, the year 1993, in which farmers received the largest fund, was earlier than the year in which the FPP was Introduced (1995)
User avatar
Komal324
Joined: 30 Aug 2018
Last visit: 18 Oct 2024
Posts: 1
Given Kudos: 6
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi, Arjun

Thank you for sharing the responses on the questions. I wanted to request you to kindly elaborate on Question 1, Option 3 as to how it is YES? It would be great if you can a detailed explanation on it.

Thanking you in advance!
Arjun123321

­
­The order of questions may have been varied.

For question 1 presented above,
Option 1: Use the trends tab for the above question. There has been a change of Private funds for Non-Farmers in the year of 1995-1997, which counters the 1st options.
Hence it should be marked as No.
(P.S- Its easier to misread and then misinterpret Non-Farmers as Farmers, as I did . Be carefull. However, the answer wont change though)


Option 2: Yes, since for majority of the study duration, the graph for Private funds received by Farmers was nearly flat. There was just one considerable dip in the year 1996.
Hence it should be marked Yes.

Option 3: As you can see in the "Statistical Tab", the PCI didnt change significantly.. Hence the answer should be Yes.



For question 2:
Option 1: Yes, as you can see, the PCI (Excluding FPP and Private Funds) didnt change for the farmers. However, the consumption changed by a lot after the introduction of FPP. That leads me to belive the answer should be Yes.

Option 2: No, there is no comparison of between the funds received by Private sources and by FPP sources and how much each conbtributed to the change of Consumption.

Option 3:This study is strictly regarding Taiwan as mentioned in the Program Brief.

Question 3:
Option 1: This is not true. Smallest Private fund were received in the year of 1998, while the largest FPP received was in 1999. (Eliminate)
Option 2: True. Largest Private fund were received in 1993, which is earlier than the start of FPP program 1995. (Hold on this ans)
Option 3: It might be true till 1997, however, the difference reduced to <15000, from 1998. Hence it doesnt apply to EVERY YEAR. (Tricky GMAT )(Eliminate)
Option 4: Not true, sunce there was a drop in FPP Payments from 1999 to 2000 as per Trends Chart. (Eliminate)
Option 5: Not True. As you can see in the Statistical Tab, the PCI for Non Farmers has increased during the study period. So it has had effect on consumption.
We cant directly infer if the FPP introduction for Farmers is the sole reason for rice in PCC.(Eliminate)
(P.S If the PCI for Non farmers hadnt changes between the 2 period, and yet still the PCC had increased, then it would have tempted me to mark this answer as YES)

So answer for Question 3 is Option 3.
Drop a Kudos! ­
­
­
curiousPope
does anyone have explanation to this question?
Thanks
­
Moderators:
Math Expert
96505 posts
RC & DI Moderator
11496 posts
DI Forum Moderator
153 posts