It is currently 19 Nov 2017, 03:40

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

QOTD #15 According to those in favour of privatisation of Social Secur

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Top Contributor
1 KUDOS received
Board of Directors
User avatar
G
Joined: 01 Sep 2010
Posts: 3372

Kudos [?]: 9282 [1], given: 1168

QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 17 Jan 2017, 10:05
1
This post received
KUDOS
Top Contributor
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

65% (01:46) correct 35% (01:55) wrong based on 308 sessions

HideShow timer Statistics



According to those in favour of privatisation of Social Security in the US, the current system is impossible to sustain. Decades ago, there were many more workers for every recipient but now the situation has reversed. Sooner or later, the fund will not be able to meet its obligations, because there will be more payments going out, than income coming in. Privatizing the system for the future recipients, while gradually phasing out the system for current and near-term recipients, is probably the best way to keep the system viable.

The answer to which of the following questions would be most useful in determining whether privatization of Social Security in the US would be a good idea?

(A) Whether privatization has proved successful for other government provided services such as employee provident funds
(B) Whether the population of the US is likely to increase significantly in the future
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
(D) Whether privatization of social security will lead to large scale protests by US citizens
(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system
[Reveal] Spoiler: OA

_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks

Kudos [?]: 9282 [1], given: 1168

Senior Manager
Senior Manager
User avatar
P
Joined: 12 Mar 2013
Posts: 258

Kudos [?]: 166 [0], given: 350

Reviews Badge
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 17 Jan 2017, 10:17
carcass wrote:
According to those in favour of privatisation of Social Security in the US, the current system is impossible to sustain. Decades ago, there were many more workers for every recipient but now the situation has reversed. Sooner or later, the fund will not be able to meet its obligations, because there will be more payments going out, than income coming in. Privatizing the system for the future recipients, while gradually phasing out the system for current and near-term recipients, is probably the best way to keep the system viable.

The answer to which of the following questions would be most useful in determining whether privatization of Social Security in the US would be a good idea?

(A) Whether privatization has proved successful for other government provided services such as employee provident funds
(B) Whether the population of the US is likely to increase significantly in the future
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
(D) Whether privatization of social security will lead to large scale protests by US citizens
(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system


privatizing is considered because of the fund problem, So If loan can help society about the fund, then I think E is the correct answer.
_________________

We Shall Overcome... One day...

Kudos [?]: 166 [0], given: 350

1 KUDOS received
Manager
Manager
avatar
B
Joined: 21 Nov 2014
Posts: 55

Kudos [?]: 16 [1], given: 16

Location: India
Schools: ISB '18
GMAT 1: 710 Q49 V38
GPA: 3.7
Premium Member
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 17 Jan 2017, 11:26
1
This post received
KUDOS
Ans is C because, according to the critics, that is the exact reason why privatization will not be successful in current scenario

Posted from my mobile device

Kudos [?]: 16 [1], given: 16

1 KUDOS received
Manager
Manager
avatar
S
Joined: 24 Dec 2015
Posts: 65

Kudos [?]: 13 [1], given: 204

Location: India
Concentration: Marketing, Technology
GMAT 1: 710 Q50 V35
GPA: 3.8
WE: Engineering (Computer Software)
GMAT ToolKit User Reviews Badge
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 17 Jan 2017, 18:53
1
This post received
KUDOS
Since the real problem is between the difference between the outward and inward funds, it is essential to understand the growth in the number of people in each of those categories. C speaks of that.

Kudos [?]: 13 [1], given: 204

Senior Manager
Senior Manager
User avatar
P
Joined: 12 Mar 2013
Posts: 258

Kudos [?]: 166 [0], given: 350

Reviews Badge
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 18 Jan 2017, 00:15
Ok I understand C is the right answer. But what's wrong with E? Is it out of scope or not related to the conclusion?
_________________

We Shall Overcome... One day...

Kudos [?]: 166 [0], given: 350

1 KUDOS received
Intern
Intern
avatar
B
Joined: 03 Nov 2016
Posts: 23

Kudos [?]: 3 [1], given: 61

Location: India
Schools: ISB '18, IIMA PGPX"18
GMAT 1: 700 Q48 V38
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 18 Jan 2017, 01:52
1
This post received
KUDOS
Answer is C
The author assumes that social security contributors will be outnumbered soon by recipient and hence there is need of privatization.
This argument is only valid if there is possibility of such event.

C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
If Ans is Yes for near future, then privatization needed.
If Ans is No for near future, then keep the existing system.

Kudos please, if it helped.

Kudos [?]: 3 [1], given: 61

Manager
Manager
avatar
S
Joined: 05 Jul 2017
Posts: 171

Kudos [?]: 45 [0], given: 176

Location: India
Concentration: Entrepreneurship, Technology
GMAT 1: 700 Q49 V36
GPA: 4
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 23 Sep 2017, 00:07
Hello Experts,

Can anyone explain the difference between C and E?

Kudos [?]: 45 [0], given: 176

Manager
Manager
avatar
B
Joined: 05 Dec 2014
Posts: 117

Kudos [?]: 1 [0], given: 125

CAT Tests
Re: QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 13 Oct 2017, 02:06
Can anyone explain options c and e
Also, in option c, what does the number of dependents in the future refer to?
I am having a hard time to comprehend option c
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future

Kudos [?]: 1 [0], given: 125

1 KUDOS received
Manager
Manager
User avatar
S
Joined: 09 Mar 2017
Posts: 131

Kudos [?]: 46 [1], given: 288

Location: India
Concentration: Marketing, Organizational Behavior
WE: Information Technology (Computer Software)
QOTD #15 According to those in favour of privatisation of Social Secur [#permalink]

Show Tags

New post 25 Oct 2017, 22:24
1
This post received
KUDOS
sunny91 wrote:
Can anyone explain options c and e
Also, in option c, what does the number of dependents in the future refer to?
I am having a hard time to comprehend option c
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future


E suggests to take loans to meet the shortage of funds. But the premise is already stating -" Sooner or later, the fund will not be able to meet its obligations", which would mean while taking loans might help in addressing the short term problem, later the same problem is going to arise.

C- Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
Explanation - The issue with current system is because of not being able to maintain a fixed ratio between the workers and recipients.
"Decades ago, there were many more workers for every recipient.." - Example 3 workers for 1 client (many to one relationship)- 3:1
"....but now the situation has reversed." - Now the ratio is reversed - 1 worker for many client- 1:3 (one to many relationship)
So if the number of workers exceed the number of clients in future the situation can again get stable, like it was a decade ago.This would suggest that we wont have to proceed with the privatization of Social Security in the US.
But if the answer is No to 'C', then we will have to go with the privatization.
_________________

------------------------------
"Trust the timing of your life"
Hit Kudus if this has helped you get closer to your goal, and also to assist others save time. Tq :)

Kudos [?]: 46 [1], given: 288

QOTD #15 According to those in favour of privatisation of Social Secur   [#permalink] 25 Oct 2017, 22:24
Display posts from previous: Sort by

QOTD #15 According to those in favour of privatisation of Social Secur

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.