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# Just looking at rising wages without looking at the corresponding

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Manager
Joined: 30 Jan 2017
Posts: 82
Location: India
Schools: ISB '19
GMAT 1: 630 Q47 V29
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Just looking at rising wages without looking at the corresponding  [#permalink]

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21 Aug 2017, 10:58
00:00

Difficulty:

45% (medium)

Question Stats:

66% (01:30) correct 34% (01:12) wrong based on 53 sessions

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Just looking at rising wages without looking at the corresponding rise in inflation can give a very misleading picture that the state of general population is improving. While wages may be rising, higher costs over the past year for things such as rent, transportation, medical care and gasoline are claiming a bigger share of their paychecks.

If the statements above are true, which of the following can be inferred based on them?

a. There are people who despite experiencing rising wages are not better off because they are paying more for essentials such as rent, transportation, and medical care.
b. The state of general population does not improve when there is a rise in wages because of increases in rent, transportation, and medical care etc.
c. Most people who have experienced rising wages are paying correspondingly more for rent, transportation, medical care, and gasoline.
d. While those who have experienced rising wages are paying more for essentials such as rent, and medical care, others are paying about the same or less for these essentials.
e. The rise in wage is partly caused by increases in rent, prices for medical care, gasoline and transportation.

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Re: Just looking at rising wages without looking at the corresponding  [#permalink]

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21 Aug 2017, 12:24
Just looking at rising wages without looking at the corresponding rise in inflation can give a very misleading picture that the state of general population is improving. While wages may be rising, higher costs over the past year for things such as rent, transportation, medical care and gasoline are claiming a bigger share of their paychecks.

If the statements above are true, which of the following can be inferred based on them?

a. There are people who despite experiencing rising wages are not better off because they are paying more for essentials such as rent, transportation, and medical care. -Correct. Even if there is an increase in wage, the condition of some people won't improve because of the corresponding increase in rent. transportation etc.
b. The state of general population does not improve when there is a rise in wages because of increases in rent, transportation, and medical care etc. -The argument doesn't tell that wages are increasing because of rent etc. It's just saying that if the wages increase and correspondingly rent etc. also increase then it doesn't mean that the state of general public is improving.
c. Most people who have experienced rising wages are paying correspondingly more for rent, transportation, medical care, and gasoline. -Irrelevant
d. While those who have experienced rising wages are paying more for essentials such as rent, and medical care, others are paying about the same or less for these essentials. -Irrelevant
e. The rise in wage is partly caused by increases in rent, prices for medical care, gasoline and transportation. -The cause of increase in wages is not given in the question.

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

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Re: Just looking at rising wages without looking at the corresponding   [#permalink] 21 Aug 2017, 12:24
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