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# The average after-tax income for a household was 2.4 percent higher in

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Joined: 01 Sep 2010
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The average after-tax income for a household was 2.4 percent higher in  [#permalink]

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03 Apr 2020, 10:29
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75% (01:42) correct 25% (02:07) wrong based on 87 sessions

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The average after-tax income for a household was 2.4 percent higher in 1983 than in 1982. At the same time, average after-tax income declined for households at the lower- and middle-income levels.

Which of the following can be most reasonably inferred from the information above?

(A) There were more households overall in 1983 than in 1982.
(B) There were fewer households at the upper-income level in 1983 than in 1982.
(C) Total after-tax income for all households at the lower- and middle-income levels was higher in 1983 than in 1982.
(D) Average after-tax income for households at the upper-income level rose by more than 2.4 percent between 1982 and 1983.
(E) Average after-tax income for households at the lower- and middle-income levels were declining prior to 1982.

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Joined: 27 Dec 2012
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Re: The average after-tax income for a household was 2.4 percent higher in  [#permalink]

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03 Apr 2020, 11:22
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Lets simplify the argument.
There are 3 income groups, lower, middle and upper. The average after tax income of households increased in 1983. But the average after tax income of lower and middle income group decreased in 1983. Now to drive the overall average up, the upper income group after tax income must have increased
With this knowledge lets scan the answer choices
A. Cannot infer that.
B. Irrelevant. Number of houses do not matter, what matters is the after tax income.
C. Incorrect. Goes against premise. It is mentioned that income tax of middle and lower group decreased
D. Correct. In line with our prethinking.
E. Cannot infer anything about years prior to 1982.
D is correct

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Joined: 04 Apr 2020
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Re: The average after-tax income for a household was 2.4 percent higher in  [#permalink]

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04 Apr 2020, 14:01
No doubt, the answer is D
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Joined: 21 Aug 2019
Posts: 5
Re: The average after-tax income for a household was 2.4 percent higher in  [#permalink]

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06 Apr 2020, 09:26
in option d, if there has been a decline in the average after-tax income of lower and middle-class households, how can there be an increase in the after-tax income of upper-class families of only 2%. it should be greater than 2 % to cover up the decline
Re: The average after-tax income for a household was 2.4 percent higher in   [#permalink] 06 Apr 2020, 09:26