It is currently 28 Jun 2017, 21:31

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The downturn in the economy last year has prompted many

Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 15 Sep 2009
Posts: 265
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

25 Jun 2012, 06:24

It provides an alternative explanation to why savings rate are not going up, i.e. possibly because prices of food and other necessities are going up, people are using monies that could have been saved for this increased expenditures.

Cheers,
Der alte Fritz.
_________________

+1 Kudos me - I'm half Irish, half Prussian.

Senior Manager
Joined: 08 Jun 2010
Posts: 392
Location: United States
Concentration: General Management, Finance
GMAT 1: 680 Q50 V32
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

25 Jun 2012, 06:32
You can rule out B just by reading the stem: The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

Intern
Joined: 21 Jun 2014
Posts: 12
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

14 Sep 2014, 03:58
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting
in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their
discretionary spending, even if their jobs were secure, in anticipation of coming hard times. However, this prediction
has not come to pass, since there has been no increase in the amount of money set aside by the general public in
savings accounts.

Which one of the following is an assumption on which the argument depends?

a) The economy has not improved in recent months.
b) There has been no increase in the amount of money invested in stocks, certificates of deposit, or other savings
vehicles.
c) Salaries have decreased as a result of the economic downturn.
d) No business sectors have seen growth in recent months.
e) Those who were laid off have been able to find other employment.
Verbal Forum Moderator
Joined: 05 Nov 2012
Posts: 539
Concentration: Technology, Other
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

14 Sep 2014, 06:57
Hi Thanks for sharing the question.
My 2 cents.
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs.

Economists predicted:layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times.
(Conc:)this prediction has not come to pass,
(Why?)since there has been no increase in the amount of money set aside by the general public in savings accounts.
Assumption: There is no factor that is eating their saving.

The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

What business sectors were most affected by the layoffs?
How much of their savings, on average, do laid-off employees deplete before finding new employment?
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
What percentage of people laid off have savings accounts?
What has been the average salary during the period since the layoffs?

B Vs C:
How much of their savings, on average, do laid-off employees deplete before finding new employment?
>> Two points why C is better than B: a: average & b:laid-off employees.
Prediction is abt the general public not only abt a specific segment. Second, average doesn't give required info abt peoples' saving behavior. It's just that some ppl's saving depletion was below average and some above.
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
>>Correct .This will answer whether is any factor that is eating their saving.
_________________

--------------------------------------------------------
Regards

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10148
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

03 Jul 2016, 09:05
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.
Manager
Joined: 13 Jul 2016
Posts: 50
GMAT 1: 770 Q50 V44
Re: The downturn in the economy last year has prompted many [#permalink]

### Show Tags

31 Oct 2016, 01:36
bipolarbear wrote:
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.

The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?

What business sectors were most affected by the layoffs?
How much of their savings, on average, do laid-off employees deplete before finding new employment?
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
What percentage of people laid off have savings accounts?
What has been the average salary during the period since the layoffs?

I think, the conclusion is about the saving of the people who are not laid off. So B and D are out. A is an un-necessary distinction that is not useful in evaluating a general conclusion.
For E, the average salary can not tell us why an increase in saving was not observed. An increase or decrease in average salary could have been useful in evaluation though.
Re: The downturn in the economy last year has prompted many   [#permalink] 31 Oct 2016, 01:36

Go to page   Previous    1   2   [ 26 posts ]

Similar topics Replies Last post
Similar
Topics:
A downturn in the economy after nearly a decade of extremely high grow 1 09 Apr 2017, 00:00
3 The downturn in the economy last year has prompted 3 01 Feb 2017, 18:51
8 Evaluate Revision: The downturn in the economy last year 5 12 May 2016, 10:49
17 The economic recession of the last year has prompted many 12 08 Jul 2016, 05:52
21 Over the last ten years, the Office of the Provost has 13 14 Oct 2016, 07:58
Display posts from previous: Sort by