Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
shwetachauhan
Joined: 17 May 2017
Last visit: 19 May 2017
Posts: 17
Given Kudos: 67
Schools: IIMA PGPX"18 IE Sept "18 HEC Dec '17
GMAT 1: 690 Q50 V33
WE:Analyst (Advertising and PR)
18 May 2017, 08:43
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
65% (02:22) correct
35%
(02:28)
wrong
based on 797
sessions
History
Date
Time
Result
Not Attempted Yet
Some of the most prosperous nations in the world have experienced a pronounced drop in national savings rates—the percentage of after-tax income an average household saves. This trend will undoubtedly continue if the average age of these nations’ populations continues to rise, since older people have fewer reasons to save than do younger people.
Which one of the following indicates an error in the reasoning leading to the prediction above?
(A) It fail to specify the many reasons younger people have for saving money, and it fails to identify which of those reasons is the strongest.
(B) It assumes that a negative savings rate—the result of the average household’s spending all of its after-tax income as well as some of its existing savings—cannot ever come about in any nation.
(C) It fails to cite statistics showing that the average age of the population of certain nations is rising.
(D) It only takes into account the comparative number of reasons older and younger people, respectively, have for saving, and not the comparative strength of those reasons.
(E) It uses after-tax income as the base for computing the national savings rate without establishing by argument that after-tax income is a more appropriate base than before-tax income.
Which one of the following indicates an error in the reasoning leading to the prediction above?
(A) It fail to specify the many reasons younger people have for saving money, and it fails to identify which of those reasons is the strongest.
(B) It assumes that a negative savings rate—the result of the average household’s spending all of its after-tax income as well as some of its existing savings—cannot ever come about in any nation.
(C) It fails to cite statistics showing that the average age of the population of certain nations is rising.
(D) It only takes into account the comparative number of reasons older and younger people, respectively, have for saving, and not the comparative strength of those reasons.
(E) It uses after-tax income as the base for computing the national savings rate without establishing by argument that after-tax income is a more appropriate base than before-tax income.
01 Mar 2021, 03:30
Kudos
Bookmarks
shwetachauhan
Official Explanation
It is unwarranted to assume that older people’s reasons for saving are as compelling as those of younger people. Older people may have stronger reasons to save. For example, in their youth they may have learned the folly of not saving, or they may be more aware of the need for a retirement fund. The answer is (D).
General Discussion
20 May 2017, 10:10
Kudos
Bookmarks
(A) It fail to specify the many reasons younger people have for saving money, and it fails to identify which of those reasons is the strongest. -- We do not really care about the quality of the reasons. Even if this were true, saying that the reason is not good enough does not help in pointing out an error.
(B) It assumes that a negative savings rate—the result of the average household’s spending all of its after-tax income as well as some of its existing savings—cannot ever come about in any nation. -- Completely out of scope. Lets say there can be a negative rate - Great! - Lets also say there cant be one - Great! - Does it really matter?
(C) It fails to cite statistics showing that the average age of the population of certain nations is rising. We believe everything that is there in the question stem.
(D) It only takes into account the comparative number of reasons older and younger people, respectively, have for saving, and not the comparative strength of those reasons. - CORRECT - It clearly says that the NUMBER of reasons to save is less for elder people. Lets say healthcare is costly - this alone could mean they save 100 and a young person would save only 30. Thus there is an apparent flaw.
(E) It uses after-tax income as the base for computing the national savings rate without establishing by argument that after-tax income is a more appropriate base than before-tax income. - Nonsensical statement.
(B) It assumes that a negative savings rate—the result of the average household’s spending all of its after-tax income as well as some of its existing savings—cannot ever come about in any nation. -- Completely out of scope. Lets say there can be a negative rate - Great! - Lets also say there cant be one - Great! - Does it really matter?
(C) It fails to cite statistics showing that the average age of the population of certain nations is rising. We believe everything that is there in the question stem.
(D) It only takes into account the comparative number of reasons older and younger people, respectively, have for saving, and not the comparative strength of those reasons. - CORRECT - It clearly says that the NUMBER of reasons to save is less for elder people. Lets say healthcare is costly - this alone could mean they save 100 and a young person would save only 30. Thus there is an apparent flaw.
(E) It uses after-tax income as the base for computing the national savings rate without establishing by argument that after-tax income is a more appropriate base than before-tax income. - Nonsensical statement.
