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# The media claim that the economy is entering a phase of

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The media claim that the economy is entering a phase of [#permalink]

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16 Jul 2006, 20:16
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The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. Their analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months and bankruptcy lawyers report that they are busier than they have been in years.

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

A. Unemployment rates are not useful indicators of growth and prosperity.

B. Economic growth cannot be measured in terms of productivity.

C. Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D. There has not been an increase in the number of bankruptcy lawyers.

E. The media often misrepresent the current state of economic affairs.

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Re: The media claim that the economy is entering a phase of grow [#permalink]

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03 Mar 2013, 12:18
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mun23 wrote:
The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. This analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months, and bankruptcy lawyers report that they are busier than they have been in years.

Which of the following is an assumption on which the argument depends?
(A)Unemployment rates are not useful indicators of growth and prosperity.
(B)Economic growth cannot be measured in terms of productivity.
(C)Legislation has not been recently passed to make legal bankruptcy easier to obtain.
(D)There has not been an increase in the number of bankruptcy lawyers.
(E)The media often misrepresent the current state of economic affairs.

Need explanation.................. ..

Hi mun23,

Premises: Media claims economy is entering a phase of growth and prosperity --> lower unemployment rates and increased productivity

Conclusion: The analysis that economy is entering a phase of growth and prosperity is false.

Reason given for conclusion: High bankruptcy rates

This is again a cause and effect reasoning similar to the question in the post below.

Cause: High number of bankruptcies
Effect: Economy is not growing

surveys-consistently-show-that-the-best-selling-ice-cream-148675.html#p1191167

As the reason for the conclusion is the higher number of bankruptcies, the answer choice which does not provide information on bankruptcies is likely to be incorrect

(A)Unemployment rates are not useful indicators of growth and prosperity.

Even if unemployment rates are not useful indicators of growth and prosperity, there could be other indicators and this may make the claim by the media true. i.e. this choice is not the one that "must be true" for the conclusion to be true.

(B)Economic growth cannot be measured in terms of productivity.

Again this choice does not have to be true for the media's claim to be false. Productivity is just an indicator, the economy may not be growing or may be growing as there could be other indicators for economic growth. Moreover, (B) also does not mention anything about bankruptcies

(C)Legislation has not been recently passed to make legal bankruptcy easier to obtain.

This is the assumption that we have to make for our conclusion to be true. If bankruptcies are being filed because of a recent change in legislation then the reason to believe that the claim by the media is false becomes irrelevant. So, (C) has to be true for the conclusion to be true which states that the claim of media is false. Note that this choice is making the questionable claim by the author regarding bankruptcies a legitimate one. This is an excellent example of a choice which eliminates an alternative explanation of the evidence.

(D)There has not been an increase in the number of bankruptcy lawyers.

Even if there is an increase in the number of lawyers, this choice does not give us any information about the bankruptcies which the stimulus relates to the falsification of media's claims.

(E)The media often misrepresent the current state of economic affairs.

If media often misrepresent the current state of economic affairs then our conclusion "could be" true, but not necessarily. The correct assumption choice will make the conclusion unequivocally true.

Hope this helps,

Vercules
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Re: The media claim that the economy is entering a phase of [#permalink]

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15 Apr 2013, 21:24
Duplicates posts on the same topic has been merged.
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Re: The media claim that the economy is entering a phase of [#permalink]

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06 Nov 2013, 08:31
Bumping for review and further discussion*.

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Re: The media claim that the economy is entering a phase of [#permalink]

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22 Nov 2014, 07:52
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).

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The media claim that the economy is entering a phase of [#permalink]

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14 Nov 2015, 09:52
Some claimed that better economic growth rate because less unemployment rate. Author opposed. Author indirectly pointed out that the economic growth is not good or bad because increased bankruptcy & lawyers are busy. So the author must assume that nothing but poor economic growth caused the more bankruptcy filing & C exactly stated the assumption.

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Re: The media claim that the economy is entering a phase of [#permalink]

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24 Nov 2015, 09:26
u2lover wrote:
It is D, otherwise the argument doesn't hold

A, B and E seem like unsupported conclusions

C there is no indication of such a thing

This was a good q.
Conclusion is that media is wrong. Why? Coz. bankruptcy rates are high. - Now, this doesn't mean that media's two methods were wrong. They might be right. But, the bankruptcy rates are high, so economy is in bad shape.

A - Didn't suggest that two were bad indicators.
B - Same as A.
C - Keep it.
D - Opposite of the premise. - Eliminate.
E - Irrelevant.

Consider C. If legislation has not been recently passed to make legal bankruptcy easier to obtain, it means that the it has been easy for long time to make legal b/k. So, the increased nos. of b/k are legit. If, the legislation was passed recently, means the increase in nos. were coz, now it is easier to make legal b/k so people are making it now. So maybe they were b/k very long back, but declared b/k only now. So, can't say whether the economy is in trouble recently.
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Re: The media claim that the economy is entering a phase of [#permalink]

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01 Mar 2016, 09:54
Why is the answer not A or B?
The media claims that there is growth and prosperity on the basis of low unemployment and increase in productivity.
But the author's conclusion is that there is no growth because the number of bankruptcy cases have increased.

Isnt it right to say that the author assumes that unemployment and productivity are not the parameters for measuring growth?

Negating A also weakens the argument that 'there is no growth and prosperity'.

Also not able to understand how negating C weakens the argument.
If Legislation has been recently passed to make legal bankruptcy easier to obtain then it makes sense for the number of filed cases to increase. How does it weakens the argument.
Plz help!
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Re: The media claim that the economy is entering a phase of [#permalink]

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08 Mar 2016, 23:14
"Lower unemployment rates and increased productivity" are the factors cited by media to make its claim that the economy is entering a phase of growth and prosperity. So these two are the main indicators in the argument. "A" and "B" goes against the facts.Hence these are not the assumptions.
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Re: The media claim that the economy is entering a phase of [#permalink]

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03 May 2016, 07:37
Let me try to figure this out :-

According to CR Bible

an assumption can either be a supporter or defender.

For it to be a supporter there will a unique element introduced in conclusion. In this case bankruptcy,and supporter will bridge the gap between the two unique elements of evidence and conclusion.

Ev - Economy >>>>> Conc - Bankruptcy

Now we need to ask how cannot be a parameter for economic trend?

If it doesn't effect a sizable population, how cant it effect the sizable population? If its easy to get away with?
Then every one from credit card defaulter to sundry lender would go on filing the bankruptcy and getting away the petty debts.

On the other hand if its tough it will give a sense that people out of something bad in economy are filing for it.
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Re: The media claim that the economy is entering a phase of [#permalink]

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07 May 2016, 00:26
"Lower unemployment rates and increased productivity" are the factors cited by media to make its claim that the economy is entering a phase of growth and prosperity. So these two are the main indicators in the argument. "A" and "B" goes against the facts.Hence these are not the assumptions.

Still not able to get this How does A and B goes against the facts.
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Re: The media claim that the economy is entering a phase of [#permalink]

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07 May 2016, 21:23
Which of the following is an assumption on which the argument depends?

A. Unemployment rates are not useful indicators of growth and prosperity - Author attacks why unemployment rate and productivity alone are not sufficient for their analysis, not the indicators themselves

B. Economic growth cannot be measured in terms of productivity - Author attacks why unemployment rate and productivity alone are not sufficient for their analysis, not the indicators themselves

C. Legislation has not been recently passed to make legal bankruptcy easier to obtain. If unemployment rates and increased productivity are true, then in order for the authors argument to hold that the increased bankruptcy filings counter the projected growth and prosperity, the ability to file for bankruptcy must remain constant.

D. There has not been an increase in the number of bankruptcy lawyers - If there was an increase in bankruptcy lawyers would the bankruptcy lawyers be "busier than ever"?

E. The media often misrepresent the current state of economic affairs - Author attacks why unemployment rate and productivity alone are not sufficient for their analysis, not that they are misrepresenting the information.
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Re: The media claim that the economy is entering a phase of [#permalink]

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06 Jun 2016, 23:35
ps_dahiya wrote:
The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. Their analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months and bankruptcy lawyers report that they are busier than they have been in years.

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

A. Unemployment rates are not useful indicators of growth and prosperity.

B. Economic growth cannot be measured in terms of productivity.

C. Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D. There has not been an increase in the number of bankruptcy lawyers.

E. The media often misrepresent the current state of economic affairs.

Premise 1: No. of people filing bankruptcy on the rise.
Premise 2(cp) : Lower unemp and higher prod.

Conclusion : Economy is going down

Assumption: The first thing I noticed was number. Seeing the word number always raises a flag for me in CR. I first thought that we need to see the percentage, maybe more people are taking risk and more success stories as well. But this is not there in the options. So second gap for me is .... has the definition of bankruptcy changed? Is being bankrupt now different from being bankrupt 10 years ago?

C fits it perfectly.

D can't be an assumption. Increase in bankruptcy lawyers doesn't imply more people will file for bankruptcy. It's the opposite. No. of lawyers have increased because more people filing for bankruptcy.
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Re: The media claim that the economy is entering a phase of [#permalink]

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06 Jun 2016, 23:38
sa18 wrote:
"Lower unemployment rates and increased productivity" are the factors cited by media to make its claim that the economy is entering a phase of growth and prosperity. So these two are the main indicators in the argument. "A" and "B" goes against the facts.Hence these are not the assumptions.

Still not able to get this How does A and B goes against the facts.

You are correct sa18 : A and B are going with the author's facts. They are not going with media's facts.

A and B are part of the counter-premise. They are not the assumptions. They do not connect conclusion to the given premises.
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Re: The media claim that the economy is entering a phase of [#permalink]

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07 Jun 2016, 00:07
ps_dahiya wrote:
The media claim that the economy is entering a phase of growth and prosperity. They point to lower unemployment rates and increased productivity. Their analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months and bankruptcy lawyers report that they are busier than they have been in years.

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

A. Unemployment rates are not useful indicators of growth and prosperity.

B. Economic growth cannot be measured in terms of productivity.

C. Legislation has not been recently passed to make legal bankruptcy easier to obtain.

D. There has not been an increase in the number of bankruptcy lawyers.

E. The media often misrepresent the current state of economic affairs.

The argument is that since number of people filing for bankruptcy has increased and bankruptcy lawyers are very busy, hence we can conclude that economy is not performing well. The argument is assuming only one cause: Poor economic health. What if there was some other cause for increase in number of people filing for bankruptcy?
Then the conclusion would fall apart.

Let us review options.

A. This is not an assumption of the argument. Argument states that Bankruptcy numbers state a different picture. As such argument is not saying that Unemployment rate is not a useful indicator. It merely projects the figures of some other indicator. Out.

B. Similar argument as in case of (A). Argument does not say that Productivity is not a useful indicator. Out.

C. This is exactly the reason we were looking for. Hold.

D. Even if the number of lawyers increased, would it affect the conclusion. No. Leave this option. C is a much better option.

E. Restating conclusion. Out.

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Re: The media claim that the economy is entering a phase of [#permalink]

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02 Aug 2016, 21:50
assumption is that all these bankruptcy cases are genuine ones and these cases are not frauds
if we negate choice c, conclusion breaks down

problem with choice A is that even if productivity is a bad indicator, it says nothing about the bankruptcy
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The media claim that the economy is entering a phase of [#permalink]

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04 Apr 2017, 17:04
How is C something that the argument DEPENDS ON? If the argument DEPENDS ON it, then without that fact, the argument doesn't hold.

The number of people filing for bankruptcy can increase every month for the last six months and bankruptcy lawyers can be busier than they have been in years for many reasons; that reason does not have to be because it is now easier to obtain bankruptcy. However, if one were to claim that unemployment rates and productivity increasing are not signs that the economy is entering a phase of growth and prosperity, and claim that the economy is not entering a phase of growth and prosperity because bankruptcy rates are increasing, doesn't that argument DEPEND ON the fact that unemployment rates are not useful indicators of growth and prosperity?

Someone please convince me of otherwise. I don't see the logic for C here. Negating C does in fact weaken the conclusion, but negating A does as well.
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07 Apr 2017, 01:32
About answer C..."filing for" and "obtaining" bankrupcy are 2 different things. So there is an assumption that if bankrupcy is easier to obtain, more people are likely to file for it regardless of their financial situation.( "I heard it is easier to obtain so I will file for bankrupcy even if I ve not yet come to the point where there are no other options...")
This assumption is not provided in the argument so It seems like a gap that prevents from answering C even if it may be the best answer. Not disagreeing, just pointing out a potential gap...

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Re: The media claim that the economy is entering a phase of [#permalink]

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11 Apr 2017, 21:56
Premises: Media claims economy is entering a phase of growth and prosperity --> lower unemployment rates and increased productivity

Conclusion: The analysis that economy is entering a phase of growth and prosperity is false.

Reason given for conclusion: High bankruptcy rates.

a Unemployment rates are not useful indicators of growth and prosperity.
INCORRECT : Logical negation = Unemployment rates are useful indicators of growth and prosperity. (does not weaken/destroy the argument)

b Economic growth cannot be measured in terms of productivity.
INCORRECT : Logical negation = Economic growth can be measure in terms of productivity (does not weaken/destroy the argument)

c Legislation has not been recently passed to make legal bankruptcy easier to obtain.
CORRECT : Logical negation = Legislation has been recently passed to make legal bankruptcy easier to obtain (BANG ON !!.. THIS DESTROYS THE ARGUMENT). This is the assumption that we have to make for our conclusion to be true. If bankruptcies are being filed because of a recent change in legislation then the reason to believe that the claim by the media is false becomes irrelevant. So, (C) has to be true for the conclusion to be true which states that the claim of media is false. Note that this choice is making the questionable claim by the author regarding bankruptcies a legitimate one. This is an excellent example of a choice which eliminates an alternative explanation of the evidence.

d There has not been an increase in the number of bankruptcy lawyers.
INCORRECT : Logical negation : There has been an increase in the number of bankruptcy lawyers (does not weaken/destroy the argument)

e The media often misrepresent the current state of economic affairs.
INCORRECT : The media often represents the current state of economic affairs (does not weaken/destroy the argument)
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Re: The media claim that the economy is entering a phase of   [#permalink] 11 Apr 2017, 21:56

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