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# Last year the price of crude oil was \$50 a barrel, but for the current

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Last year the price of crude oil was \$50 a barrel, but for the current  [#permalink]

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04 Jun 2017, 11:13
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Difficulty:

75% (hard)

Question Stats:

51% (01:49) correct 49% (02:00) wrong based on 164 sessions

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Last year the price of crude oil was \$50 a barrel, but for the current year it has been \$110 a barrel. We can conclude that the price of petroleum is on an upward trend, and the price will be higher next year.

Which of the following, if true, most seriously weakens the conclusion above?

A- The crude oil figures on the basis of a representative sample of economic data rather than all of the available data.
B- Last year, Shale oil reserves discovered in the American Midwest brought crude oil prices temporarily below their recent stable annual level of \$110 a gallon to form the basis of the blockbuster movie.
C- Increases in Certain government subsidies are tied to the price of crude oil, and at a price of \$110 a barrel or above, these subsidies constitute a force causing further hikes in crude oil prices.
D- The \$50 a barrel price of crude oil last year represented a 1 year low.
E- Government intervention cannot affect the price of crude oil to any significant degree.

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Re: Last year the price of crude oil was \$50 a barrel, but for the current  [#permalink]

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04 Jun 2017, 11:39
rohan2345 wrote:
Last year the price of crude oil was \$50 a barrel, but for the current year it has been \$110 a barrel. We can conclude that the price of petroleum is on an upward trend, and the price will be higher next year.

Which of the following, if true, most seriously weakens the conclusion above?

(A) The crude oil figures on the basis of a representative sample of economic data rather than all of the available data.
(B) Last year, Shale oil reserves discovered in the American Midwest brought crude oil prices temporarily below their recent stable annual level of \$110 a gallon to form the basis of the blockbuster movie.
(C) Increases in Certain government subsidies are tied to the price of crude oil, and at a price of \$110 a barrel or above, these subsidies constitute a force causing further hikes in crude oil prices.
(D) The \$50 a barrel price of crude oil last year represented a 1 year low.
(E) Government intervention cannot affect the price of crude oil to any significant degree.

Last Year = \$50
Current Year = \$110

From the information provided we conclude that the price of crude oil is on an increasing trend and will rise higher in future.

Only Option (B) states that the base/usual price of the commodity is \$110 and due to some unusual factors last year the price was brought down to \$50 and we can not conclude the conclusion arrive in the highlighted part of the stimulus , as the price of crude oil may/may not increase/decrease/remain same...
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Re: Last year the price of crude oil was \$50 a barrel, but for the current  [#permalink]

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14 Jul 2017, 22:14
In option B, what does it mean by 'to form the basis of the blockbuster movie'?
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Re: Last year the price of crude oil was \$50 a barrel, but for the current  [#permalink]

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07 Jan 2019, 10:16
Option B mentions \$110 gallons instead of \$110 a barrel. This may be a typo. But it became a reason for me to reject the Option B.
Re: Last year the price of crude oil was \$50 a barrel, but for the current   [#permalink] 07 Jan 2019, 10:16
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