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C
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Difficulty:
65%
(hard)
Question Stats:
57% (01:59) correct
43%
(02:19)
wrong
based on 1877
sessions
History
Date
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Result
Not Attempted Yet
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.
Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?
(A) Lijau is the richest province in the country.
(B) Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
(C) Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
(D) Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
(E) In the modern economy, credit cards are associated with both prestige and convenience.
Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?
(A) Lijau is the richest province in the country.
(B) Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
(C) Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
(D) Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
(E) In the modern economy, credit cards are associated with both prestige and convenience.
Solution: C
Start by identifying the conclusion, which is elusive in this question: this is one of those Strengthen questions with a P word (“prediction”) in the stem, so the conclusion is actually hidden in the stem rather than the stimulus: “The credit card issuers may successfully establish credit card use in Lijau.”
Our argument told us that credit cards were unlikely to succeed in Lijau because of the high rate of savings, so we need some premise that attacks that, making (C) the best answer: if the other provinces now in the grip of the credit card companies once had a high rate of savings too, there is at least a chance that Lijau will follow their example.
Start by identifying the conclusion, which is elusive in this question: this is one of those Strengthen questions with a P word (“prediction”) in the stem, so the conclusion is actually hidden in the stem rather than the stimulus: “The credit card issuers may successfully establish credit card use in Lijau.”
Our argument told us that credit cards were unlikely to succeed in Lijau because of the high rate of savings, so we need some premise that attacks that, making (C) the best answer: if the other provinces now in the grip of the credit card companies once had a high rate of savings too, there is at least a chance that Lijau will follow their example.
25 Jun 2014, 21:16
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This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable
St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works
St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later
StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this
StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success
St E, We don't know if the province is modern or not..
Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener
17 Jan 2019, 08:25
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Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average.
Most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.
Then it's odd that credit card companies are trying to establish themselves here.
What would support the success of credit card? The argument has given two reasons why the credit card is likely to fail. We need to say why that may not be the case.
(A) Lijau is the richest province in the country.
We don't know how that affects credit card success.
(B) Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
This is one reason why cards may not become popular. If bankruptcy can be declared, then taking credit becomes more attractive.
(C) Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
This is relevant. One reason given that credit cards may fail is that Lijau has high saving rate. This tells us that others with even higher previous saving rates have high credit card use. So in itself, the first reason given becomes weak invalid. The first reason does not need any other condition to be met. The reason is simply "high saving rate". This tells us that "high saving rate" may not be a valid reason. Hence this supports the success of credit card. Note that it does not establish the success. It just supports. Let's see remaining options.
(D) Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
The credit card companies are trying to establish the credit card industry. This talks about whatever is already prevalent in Lijau. So it doesn't tell us what to expect in future.
(E) In the modern economy, credit cards are associated with both prestige and convenience.
These are the pros of credit cards. How they will impact people of Lijau, we do not know. Hence it doesn't tip the scale in favour of credit cards.
Answer (C)
