GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 03 Aug 2020, 22:15

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

Summer: We should expect the current amount of compensation

Author Message
TAGS:

Hide Tags

Intern
Joined: 18 Feb 2014
Posts: 21
Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

Updated on: 28 May 2017, 05:47
4
4
00:00

Difficulty:

35% (medium)

Question Stats:

67% (01:43) correct 33% (01:56) wrong based on 528 sessions

HideShow timer Statistics

Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?

Originally posted by hapless12 on 21 Apr 2014, 00:01.
Last edited by broall on 28 May 2017, 05:47, edited 2 times in total.
Edited the title of the question
Intern
Joined: 12 May 2013
Posts: 42
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

21 Apr 2014, 06:39
5
1
hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

whether the definition of ‘traditional’ has changed in the current housing market.

whether the current real estate market has recovered from the recent crash.

whether it is a good idea to raise the traditional 4% commission.

whether a real estate agent is inherently motivated to complete a sale.

what level of commission is appropriate under current economic conditions
.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?

I think it should be E
Here is how i got it (it may be wrong )

A.whether the definition of ‘traditional’ has changed in the current housing market. out of context as they are not arguing after the definition

B.whether the current real estate market has recovered from the recent crash. Autumn just mentioned that the 4% commission was before the market crashed , they clearly are not talking about the recovery of the market

C.whether it is a good idea to raise the traditional 4% commission. read carefully,summer never said anything about INCREASING the rate to 4%

D.whether a real estate agent is inherently motivated to complete a sale. if you see carefully autumn do not emphasis more on the motivating 4% commission, rather she is trying to explain summer why it is not advisable to pay 4% commission , so i think D will be eliminated

E.what level of commission is appropriate under current economic conditions. correct, as summer suggests paying the agents 4% commission ,while autumn suggests why it would not be ideal paying such high commission, keeping market condition in mind

it is my 1st time,so if the explanation is not proper, please excuse me
if it helped please press kudos
General Discussion
Intern
Joined: 01 Mar 2015
Posts: 27
Location: India
GMAT 1: 690 Q42 V42
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

25 Jul 2015, 03:20
1
The answer to this question is E. I have a request- Please do not write the answer just below the question... It fails the whole purpose
Intern
Status: One more try
Joined: 01 Feb 2015
Posts: 34
Location: India
Concentration: General Management, Economics
WE: Corporate Finance (Commercial Banking)
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

05 Aug 2017, 22:13
hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?

Big big trap in C .Summer is not asking about a raise above 4%
E is the ans
_________________
Believe you can and you are halfway there-Theodore Roosevelt
Current Student
Joined: 26 Aug 2016
Posts: 545
Location: India
GMAT 1: 690 Q50 V33
GMAT 2: 700 Q50 V33
GMAT 3: 730 Q51 V38
GPA: 4
WE: Information Technology (Consulting)
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

24 May 2018, 19:35
Hi abhimahna, GMATNinja
If you remove C because Summer is not talking about rise.
Where in the statement, Summer talks about current Economic conditions ??

Thank you.
Manager
Joined: 31 May 2015
Posts: 170
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

26 May 2018, 03:47
Hi nightmare, I believe current econocmis conditios refers to Autum’s comment on “That traditional 4% commission was established before the crash of the housing market”
_________________
GMAT loosers are born not made !!!
Board of Directors
Status: Emory Goizueta Alum
Joined: 18 Jul 2015
Posts: 3604
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

26 May 2018, 04:18
2
Nightmare007 wrote:
Hi abhimahna, GMATNinja
If you remove C because Summer is not talking about rise.
Where in the statement, Summer talks about current Economic conditions ??

Thank you.

Hey Nightmare007 ,

Let me explain you the argument in simpler terms.

Summer said Commission should be 4% because some studies show that below it won't work.

Autumn said your point is valid about traditional 4% but recently some crashes happened, hence you should not expect commission to be 4%.

This implies they are disagreeing about expectations that should be there at the current time. Summer is expecting 4% while Autumn is expecting less than 4%. And the reason for the disagreement by Autumn is the current economic conditions. Hence, it is okay to say that they disagree about the level of commission under current economic conditions. Summer didn't consider those conditions while Autumn did.

Hence, E is the right answer.

Does that make sense?
_________________
My LinkedIn abhimahna. | My GMAT Story: From V21 to V40 | My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub | Importance of an Error Log!
Verbal Resources: All SC Resources at one place | All CR Resources at one place
GMAT Club Inbuilt Error Log Functionality - View More | Best Reply Functionality on GMAT Club!
New Visa Forum - Ask all your Visa Related Questions - here | Have OPT questions? - Post them here.
Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free
Check our new About Us Page here. |
Math Expert
Joined: 02 Sep 2009
Posts: 65771
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

31 May 2018, 03:43
1
1
hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?

VERITAS PREP OFFICIAL SOLUTION:

Solution: E

In any Method of Reasoning question asking what two parties agree or disagree on, try to find one issue that both parties explicitly address – in most cases, the four bad answers will contain issues addresses by one or neither of the two parties. In this case, (E) is the best choice because both women discuss whether the 4% commission is still appropriate, with Summer saying yes and Autumn saying no.
_________________
Non-Human User
Joined: 01 Oct 2013
Posts: 9363
Re: Summer: We should expect the current amount of compensation  [#permalink]

Show Tags

11 Aug 2019, 01:44
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Summer: We should expect the current amount of compensation   [#permalink] 11 Aug 2019, 01:44