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The media claim that the economy is entering a phase of growth and pro

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

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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.


This question is part of the GMAT Club Critical Reasoning : Assumption" Revision Project.

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Originally posted by ps_dahiya on 16 Jul 2006, 19:16.
Last edited by Bunuel on 17 Dec 2018, 02:56, edited 3 times in total.
Renamed the topic and edited the question.
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 17 Jul 2006, 17:56
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OFFICIAL EXPLANATION:



OA is C

The conclusion of the argument is that the media are wrong in saying that the economy is entering a phase of growth and prosperity. The basis for that claim is that the number of people filing for bankruptcy has increased every month for the last six months and that bankruptcy lawyers are busier than they have been in years. In order for this argument to be valid, however, the author has to assume that the increase in the number of bankruptcies is a result of the state of the economy and not the result of something unrelated.

(A) This does not have to be true for the claim that the media are wrong about the economy to hold. It is possible that unemployment rates are useful indicators of growth and prosperity and that media is still wrong about the economy (i.e. if there are other indicators that show problems in other areas).

(B) This does not have to be true for the claim that the media are wrong about the economy to hold. It is possible that productivity is a good measure of economic growth and that media is still wrong about the economy (i.e. if there are other indicators that show problems in other areas).

(C) CORRECT. This has to be true for the claim that the media are wrong about the economy to hold. If legislation has recently been passed that makes it easier to obtain bankruptcy, this would explain away the counterevidence to the media's argument. The increased number of bankruptcies could have been the result of the easier process rather than of a poor economy.

(D) This does not have to be true for the claim that the media are wrong about the economy to hold. An increase in the number of bankruptcy lawyers would not explain the increase in the number of bankruptcy filings.

(E) This does not have to be true for the claim that the media are wrong about the economy to hold. Even if the media did not often misrepresent the current state of economic affairs, the argument that the media are wrong might still hold.

The correct answer is C.
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 16 Jul 2006, 19:19
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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
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 02 Jul 2007, 19:41
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Serve me a slice of C.

If it's easier to be bankrupt, no wonder lawyers are busier.

If not, the arugment falls apart.
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 20 May 2009, 20:36
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IMO C

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 --> negating: Unemployment rates are useful indicators of growth and prosperity --> not strong enough to weaken the argument
B Economic growth cannot be measured in terms of productivity -->negating: Economic growth can be measured in terms of productivity --> not strong enough to weaken the argument
C Legislation has not been recently passed to make legal bankruptcy easier to obtain --> best: If legislation has been easier, it accounts for the increase of people filling for bankruptcy, not because of the deterioration of the economy
D There has not been an increase in the number of bankruptcy lawyers -->weaken: because there has been a decrease or remain of number of lawyers, this accounts for the busier activity of lawyers, not because of the increase of bankruptcy cases
E The media often misrepresent the current state of economic affairs -->irrelevant
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 18 Jan 2013, 02:24
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The author admits to increased productivity and decreased unemployment rate. He/She just adds that the increase of bankrupcy filing is worth consideration that the analysis is false. The author assumes that the increase number in bankruptcy filing could be a reflection of the economy's state.

(C) removes the possibility that the increase in bankruptcy is not because the legislation has made filings easier to do so. If that is the case, then it is just because people are taking advantage of the easiness to file bankruptcy and perhaps, bankruptcy rate in the country has not really increased.
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 03 Mar 2013, 11:15
Answer is C

Analysis :- (Premise) media's claim is that economy is growing, (Evidence) Employment rates are decreasing and that of productivity increasing. (Counter Premise) Number of cases of filling for bankruptcy increased and bankruptcy lawyers are busier than they ever (Conclusion) So the analysis of media is false and economy is not progressing.

Author has attributed increasing number of bankruptcy cases to the conclusion that economy is not progressing. In doing so he has assumed that there are no other reasons for the increased number of bankruptcy cases. So any answer choice that would close the possibility of different reason for an increase in bankruptcy cases would be correct here.

A) This choice is indeed enticing however it should be noted here that this choice goes on to weaken the media's claim but it does not establish the relationship between counterpremise and conclusion. Number of people filling bankruptcy cases has increased. Unemployment rates are not useful indicators of growth and prosperity, so the media's claim is not true. This sentence does not make sense so this choice can not be correct.

B) This choice is also wrong for the same reasons cited in choice A.

C) Correct Choice. This close the possibility of another reason for increase in bankruptcy cases.

D) Irrelevant

E) Incorrect for same reason cited in choice A

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

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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,

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

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Completely agree with anurag16

Negate option (C)

Legislation has recently been passed to make legal bankruptcy easier to obtain.

Result -

1. Number of people filing for bankruptcy has increased
2. Bankruptcy lawyers report that they are busier than before

The arguement falls apart, hence correct answer is definitely (C)
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 01 Mar 2016, 08:54
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 growth and pro  [#permalink]

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New post 06 Mar 2016, 19:44
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souvik101990 wrote:
This question is part of the GMAT Club Critical Reasoning : Assumption" Revision Project.

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?

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

• Economic growth cannot be measured in terms of productivity.

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

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

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


tough assumption question..
E can be eliminated right away...
D - looks like a strengthener..negated - more lawyers..and lawyers are busier than before - so looks ok...
C - if legislation has been easier to obtain - more people would file for bankruptcy - and thus the conclusion is not true. people file for bankruptcy not because the economy is bad, but because they can - for ex. to avoid paying loans/taxes/etc. so C is better than D...
B and A - well..we are given these 2 in the argument...UR + increased productivity -> sign that economy is ok..
B - measuring the productivity - irrelevant..
A - tough one..

went with C in the end...
3 possible answer choices...wow..
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 08 Mar 2016, 22:14
"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 growth and pro  [#permalink]

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New post 06 Jun 2016, 23:07
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.

C is the answer.
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Re: The media claim that the economy is entering a phase of growth and pro  [#permalink]

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New post 11 Apr 2017, 20:56
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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