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

 It is currently 17 Dec 2018, 06:42

# R1 Decisions:

Michigan Ross Chat (US calls are expected today)  |  UCLA Anderson Chat  (Calls expected to start at 7am PST; Applicants from Asia will hear first)

### 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
Your Progress

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 December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
• ### 10 Keys to nail DS and CR questions

December 17, 2018

December 17, 2018

06:00 PM PST

07:00 PM PST

Join our live webinar and learn how to approach Data Sufficiency and Critical Reasoning problems, how to identify the best way to solve each question and what most people do wrong.
• ### R1 Admission Decisions: Estimated Decision Timelines and Chat Links for Major BSchools

December 17, 2018

December 17, 2018

10:00 PM PST

11:00 PM PST

From Dec 5th onward, American programs will start releasing R1 decisions. Chat Rooms: We have also assigned chat rooms for every school so that applicants can stay in touch and exchange information/update during decision period.

# The downturn in the economy last year has prompted many

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Manager
Joined: 15 Sep 2009
Posts: 203
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

25 Jun 2012, 05:24
Correct answer is C.

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: 309
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, 05:32
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?

Answer B doesn't even address the savings pattern.

Correct answer should be C.
Intern
Joined: 21 Jun 2014
Posts: 10
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

14 Sep 2014, 02:58
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.
Senior Manager
Joined: 05 Nov 2012
Posts: 446
Concentration: Technology, Other
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

14 Sep 2014, 05:57
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.
Intern
Joined: 13 Jul 2016
Posts: 37
GMAT 1: 770 Q50 V44
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

31 Oct 2016, 00:36
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.
SVP
Joined: 12 Dec 2016
Posts: 1639
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

30 Jun 2017, 13:36
the main premise is no increase in saving accounts, the main conclusion is no decrease in discretionary spending
this is an assumption question => C is correct.

Other options attack the parallel argument, not the main argument.
Non-Human User
Joined: 01 Oct 2013
Posts: 3529
Re: The downturn in the economy last year has prompted many  [#permalink]

### Show Tags

24 Nov 2018, 05:12
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: The downturn in the economy last year has prompted many &nbs [#permalink] 24 Nov 2018, 05:12

Go to page   Previous    1   2   [ 27 posts ]

Display posts from previous: Sort by

# The downturn in the economy last year has prompted many

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 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®.