GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 20 Sep 2018, 00:10

### 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

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

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

Author Message
TAGS:

### Hide Tags

Board of Directors
Joined: 01 Sep 2010
Posts: 3463
QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

17 Jan 2017, 10:05
2
Top Contributor
6
00:00

Difficulty:

45% (medium)

Question Stats:

68% (01:51) correct 32% (01:49) wrong based on 568 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

_________________
Senior Manager
Joined: 12 Mar 2013
Posts: 284
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

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...

Manager
Joined: 21 Nov 2014
Posts: 53
Location: India
Schools: ISB '18
GMAT 1: 710 Q49 V38
GPA: 3.7
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

17 Jan 2017, 11:26
1
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
Manager
Joined: 24 Dec 2015
Posts: 62
Location: India
Concentration: Marketing, Technology
GMAT 1: 710 Q50 V35
GPA: 3.8
WE: Engineering (Computer Software)
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

17 Jan 2017, 18:53
1
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.
Senior Manager
Joined: 12 Mar 2013
Posts: 284
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

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...

Intern
Joined: 03 Nov 2016
Posts: 22
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

18 Jan 2017, 01:52
2
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.

BSchool Forum Moderator
Joined: 05 Jul 2017
Posts: 493
Location: India
GMAT 1: 700 Q49 V36
GPA: 4
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

23 Sep 2017, 00:07
Hello Experts,

Can anyone explain the difference between C and E?
_________________
Manager
Joined: 05 Dec 2014
Posts: 218
Location: India
GMAT 1: 690 Q48 V36
GPA: 3.54
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

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
Director
Joined: 09 Mar 2017
Posts: 542
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

25 Oct 2017, 22:24
1
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

SVP
Joined: 12 Dec 2016
Posts: 1796
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

29 Nov 2017, 16:25
boiled down to A and C.
E is an important pattern b/c E suggests another solution. Also, such pattern often is out of scopes in many question b/c the pattern discusses sth else that is not directly linked with the argument.
Intern
Joined: 26 Feb 2017
Posts: 40
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

05 Jan 2018, 11:30
Can someone explain why A isn't the answer ?
BSchool Forum Moderator
Joined: 28 Mar 2017
Posts: 1132
Location: India
GMAT 1: 730 Q49 V41
GPA: 4
Re: QOTD #15 According to those in favour of privatisation of Social Secur  [#permalink]

### Show Tags

05 Jan 2018, 13:26
1
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 -Other funds are out of scope
(B) Whether the population of the US is likely to increase significantly in the future -Out of scope
(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 -Correct. If the income earning people become more in number than the payments going out (dependants) people, then the problem can be resolved.
(D) Whether privatization of social security will lead to large scale protests by US citizens -Protests are out of scope
(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system -Taking loans will eventually lead to payment of debt. Thus, this can't be a good evaluation tool.
_________________

Kudos if my post helps!

Long And A Fruitful Journey - V21 to V41; If I can, So Can You!!

Preparing for RC my way

My study resources:
1. Useful Formulae, Concepts and Tricks-Quant
2. e-GMAT's ALL SC Compilation
3. LSAT RC compilation
4. Actual LSAT CR collection by Broal
5. QOTD RC (Carcass)
6. Challange OG RC
7. GMAT Prep Challenge RC

Re: QOTD #15 According to those in favour of privatisation of Social Secur &nbs [#permalink] 05 Jan 2018, 13:26
Display posts from previous: Sort by

# Events & Promotions

 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®.