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# The widespread staff reductions in a certain region s

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Senior Manager
Joined: 05 Aug 2005
Posts: 383

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12 Feb 2007, 22:47
5
00:00

Difficulty:

95% (hard)

Question Stats:

42% (02:18) correct 58% (02:25) wrong based on 252 sessions

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The widespread staff reductions in a certain regionâ€™s economy are said to be causing people who still have their jobs to cut back on new purchases as though they, too, had become economically distressed. Clearly, however, actual spending by such people is undiminished, because there has been no unusual increase in the amount of money held by those people in savings accounts.

Which of the following explains why the savings accounts balance did not increase in spite of decrease in spending on new purchases?

(A) If people in the region who continue to be employed have debts, they are now paying them off at an accelerated rate.
(B) People in the region who continue to be employed and who have relatives who have lost their jobs commonly assist those relatives financially.
(C) If people in the region who have lost jobs get new jobs, the new jobs generally pay less well than the ones they lost.
(D) People in the region who continue to be employed are pessimistic about their prospects for increasing their incomes.
(E) There exist no statistics about sales of goods in the region as a whole.
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Joined: 08 Nov 2006
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12 Feb 2007, 22:51
gmacvik wrote:
The widespread staff reductions in a certain regionâ€™s economy are said to be causing people who still have their jobs to cut back on new purchases as though they, too, had become economically distressed. Clearly, however, actual spending by such people is undiminished, because there has been no unusual increase in the amount of money held by those people in savings accounts.

Which one of the following is an assumption on which the argument relies?
(A) If people in the region who continue to be employed have debts, they are not now paying them off at an accelerated rate.
(B) People in the region who continue to be employed and who have relatives who have lost their jobs commonly assist those relatives financially.
(C) If people in the region who have lost jobs get new jobs, the new jobs generally pay less well than the ones they lost.
(D) People in the region who continue to be employed are pessimistic about their prospects for increasing their incomes.
(E) There exist no statistics about sales of goods in the region as a whole.

The conclusion can be true only if there are only 2 choices for spending money.

Spending on purchases
Saving

If people spend money on other things, like debts, then the lack of increase in savings does not mean that the spending is not diminished.

We need A

(A) If people in the region who continue to be employed have debts, they are not now paying them off at an accelerated rate.

to be true for the conclusion to be made.
VP
Joined: 22 Oct 2006
Posts: 1401
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13 Feb 2007, 13:14
"they are not now" is that proper english or am I just dumb. lol
Senior Manager
Joined: 09 Aug 2006
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17 Feb 2007, 13:20
Hi,
Partly agree with rdg. If A is true, i.e if they are not paying debts at accelearated rate then the savings account should have shown an increase which is not the case as mentioned in the argument.

But again B also cannot be the choice. Nowhere it is written in the question about what employed people do. Do they have relatives who have lost the jobs. hence this statement is out of scope.

Remember, we are asked about the assumption on which argument relies. If simply written the questions says that :

Some people lost jobs -> Still employed people cut their expenses though it is not evident looking at their savings account. Which means that they might not have actually cut expenses. But the job losses may have caused a cascading effect and they also fear of losing the job. hence a sense of pessimism prevails about their prospects.

Therefore according to me the Answer is D.

What is the OA and OE ..???

-Regards.
Manager
Joined: 09 Nov 2006
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18 Feb 2007, 04:03
Honestly, I can barely see any connection between the scope of the stem and A.

gmacvik, where did you get this question?
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Location: China
Concentration: Healthcare, Entrepreneurship
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13 Dec 2016, 23:17
17. The argument in the passage proceeds by doing which one of the following?
(A) concluding that since an expected consequence of a supposed development did not take place
(B) concluding that since only one of the two predictable consequences of a certain kind of behavior is observed to occur this observed occurrence cannot, in the current situation, be a consequence of such behavior
(C) arguing that since people’s economic behavior is guided by economic self-interest only misinformation or error will cause people to engage in economic behavior that harms them economically
(D) arguing that since two alternative developments exhaust all the plausible possibilities one of those developments occurred and the other did not
(E) concluding that since the evidence concerning a supposed change is ambiguous, it is most likely that no change is actually taking place
anther question with the same stimuli OA is A
why not D?
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17 Dec 2016, 04:30
YangYichen wrote:
17. The argument in the passage proceeds by doing which one of the following?
(A) concluding that since an expected consequence of a supposed development did not take place
(B) concluding that since only one of the two predictable consequences of a certain kind of behavior is observed to occur this observed occurrence cannot, in the current situation, be a consequence of such behavior
(C) arguing that since people’s economic behavior is guided by economic self-interest only misinformation or error will cause people to engage in economic behavior that harms them economically
(D) arguing that since two alternative developments exhaust all the plausible possibilities one of those developments occurred and the other did not
(E) concluding that since the evidence concerning a supposed change is ambiguous, it is most likely that no change is actually taking place
anther question with the same stimuli OA is A
why not D?

First, if at all A is the OA, then the question is wrongly set. The question is not an suumption type, but an explain discrepency type. The question should be something as follows:

Which of the following explains why the savings accounts balance did not increase in spite of decrease in spending on new purchases?

Moreover in this case option A should have been:
If people in the region who continue to be employed have debts, they are not now paying them off at an accelerated rate.

This question seems to be flawed.
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17 Dec 2016, 04:31
gmacvik wrote:
The widespread staff reductions in a certain regionâ€™s economy are said to be causing people who still have their jobs to cut back on new purchases as though they, too, had become economically distressed. Clearly, however, actual spending by such people is undiminished, because there has been no unusual increase in the amount of money held by those people in savings accounts.

Which one of the following is an assumption on which the argument relies?
(A) If people in the region who continue to be employed have debts, they are not now paying them off at an accelerated rate.
(B) People in the region who continue to be employed and who have relatives who have lost their jobs commonly assist those relatives financially.
(C) If people in the region who have lost jobs get new jobs, the new jobs generally pay less well than the ones they lost.
(D) People in the region who continue to be employed are pessimistic about their prospects for increasing their incomes.
(E) There exist no statistics about sales of goods in the region as a whole.

The above question has been modified because of the flaw described in the above post.
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Joined: 04 Oct 2016
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17 Dec 2016, 18:55
sayantanc2k wrote:
gmacvik wrote:
The widespread staff reductions in a certain regionâ€™s economy are said to be causing people who still have their jobs to cut back on new purchases as though they, too, had become economically distressed. Clearly, however, actual spending by such people is undiminished, because there has been no unusual increase in the amount of money held by those people in savings accounts.

Which one of the following is an assumption on which the argument relies?
(A) If people in the region who continue to be employed have debts, they are not now paying them off at an accelerated rate.
(B) People in the region who continue to be employed and who have relatives who have lost their jobs commonly assist those relatives financially.
(C) If people in the region who have lost jobs get new jobs, the new jobs generally pay less well than the ones they lost.
(D) People in the region who continue to be employed are pessimistic about their prospects for increasing their incomes.
(E) There exist no statistics about sales of goods in the region as a whole.

The above question has been modified because of the flaw described in the above post.

i agree with u. i'm so confused with the second question. So this can be a debatable problem.
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17 Sep 2018, 20:23
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Re: The widespread staff reductions in a certain region s &nbs [#permalink] 17 Sep 2018, 20:23
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