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A. Incorrect — Only compares state universities with community colleges/private universities. We need the comparison with both state and private universities.
B. Incorrect — Endowments aren't relevant to how much of the budget goes toward payroll.
C. Correct — The argument assumes both state and private universities spend more on payroll than community colleges. Otherwise, community colleges couldn't redirect those payroll funds toward student services.
D. Incorrect — Whether universities should spend more on student services is irrelevant.
E. Incorrect — Payroll doesn't need to be the largest expense. It only needs to be higher at state/private universities than at community colleges.
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GMAT 1: 740 Q51 V39
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Community colleges can spend more on­ student services than can either state or private universities with the same size budgets, since community colleges can apply funds that state and private universities spend on payroll towards student services.
Which of the following assumptions is made in the argument above?

1. premise: since community colleges can apply funds that state and private universities spend on payroll towards student services
2. conclusion: Community colleges can spend more on­ student services than can either state or private universities with the same size budgets

A. State universities generally spend more on payroll than do either community colleges or private universities.
Wrong: comparison is not complete. Text mentions state or private universities
B. The average endowment of community colleges is lower than that of both state and private universities.

Wrong: switch focus on endowment
C. Both state and private universities incur higher payroll costs than do community colleges.

Correct: we assume this one and then ­say that Community colleges can spend more on student services than can either state or private universities with the same size budgets, since community colleges can apply funds that state and private universities spend on payroll towards student services. the contrary (NEGATIVE TECHNIQUE) woul make the conclusion fall apart
D. State and private universities should spend more on student services.
Wrong: this is a recommendation, not a necessary assumption
E. Payroll constitutes the single largest expenditure for community colleges, state universities, and private universities.

Wrong: this assumption is not necessary. no necessary thinking that it's the largest expenditure. even if it's not, conclusion still holds.
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Correct Answer: C

Argument Breakdown:
- Fact: Budgets are the same size across all three types.
- Premise: Community colleges can apply funds that state/private universities spend on payroll toward student services.
- Conclusion: Community colleges can spend MORE on student services than state or private universities.

Assumption Gap:
For community colleges to redirect payroll money toward student services and end up with MORE to spend, their own payroll expenses must be lower than those of both state and private universities.

Negation Test on (C):
Negation: "State and private universities do NOT incur higher payroll costs than community colleges."
If community colleges have equal or higher payroll costs, they have no extra money to divert to student services. The argument collapses.

Conclusion: Option C
Prabh21
The only assumption supporting the argument of community colleges spending more on student services than Public or private colleges is
C. Both state and private universities incur higher payroll costs than do community colleges.
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Conclusion - Community colleges can spend more on student services than can either state or private universities with the same size budgets
Line of reasoning - since community colleges can apply funds that state and private universities spend on payroll towards student services

Assumption: the gap here is community colleges must have payroll must have been lesser than the state and private universities

Only option C fills the gap.
Negation of C - Both state and private universities do not incur higher payroll costs than do community colleges. This breaks the conclusion.

Answer: Option c
Bunuel
­Community colleges can spend more on student services than can either state or private universities with the same size budgets, since community colleges can apply funds that state and private universities spend on payroll towards student services.Which of the following assumptions is made in the argument above?

A. State universities generally spend more on payroll than do either community colleges or private universities.
B. The average endowment of community colleges is lower than that of both state and private universities.
C. Both state and private universities incur higher payroll costs than do community colleges.
D. State and private universities should spend more on student services.
E. Payroll constitutes the single largest expenditure for community colleges, state universities, and private universities.


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