GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 23 Jul 2018, 08:49

# Happening SOON:

How to craft the best MBA Application Resume - 9 AM PST

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# V10-12

Author Message
TAGS:

### Hide Tags

Founder
Joined: 04 Dec 2002
Posts: 17085
Location: United States (WA)
GMAT 1: 750 Q49 V42

### Show Tags

17 Aug 2015, 11:04
00:00

Difficulty:

25% (medium)

Question Stats:

75% (00:47) correct 25% (01:19) wrong based on 53 sessions

### HideShow timer Statistics

Over the past 2 years, the population of the Rugian Republic, which is directly correlated to its labour force, has declined from 117.6 million to 115.4 million, and the country’s GDP has remained steady. A country’s GDP is determined by two factors: the size of its labor force and the productivity of its labor force. Therefore, if the Rugian population trend continues, the country’s GDP will soon decline as well.

Which of the following most strengthens the argument?

A. There have been no technological developments that would increase the productivity of the labor force
B. Automation has allowed some manufacturing companies to increase their output
C. The country economy’s is shifting from goods to services, and services create a higher level of output per worker
D. The level of immigration to the Rugian Republic has increased, and this trend is expected to continue
E. There has been an increase in the number of young people entering the workforce, and older workers are delaying their retirement longer

_________________

Founder of GMAT Club

Just starting out with GMAT? Start here... or use our Daily Study Plan

Co-author of the GMAT Club tests

Founder
Joined: 04 Dec 2002
Posts: 17085
Location: United States (WA)
GMAT 1: 750 Q49 V42

### Show Tags

17 Aug 2015, 11:04
Official Solution:

Over the past 2 years, the population of the Rugian Republic, which is directly correlated to its labour force, has declined from 117.6 million to 115.4 million, and the country’s GDP has remained steady. A country’s GDP is determined by two factors: the size of its labor force and the productivity of its labor force. Therefore, if the Rugian population trend continues, the country’s GDP will soon decline as well.

Which of the following most strengthens the argument?

A. There have been no technological developments that would increase the productivity of the labor force
B. Automation has allowed some manufacturing companies to increase their output
C. The country economy’s is shifting from goods to services, and services create a higher level of output per worker
D. The level of immigration to the Rugian Republic has increased, and this trend is expected to continue
E. There has been an increase in the number of young people entering the workforce, and older workers are delaying their retirement longer

(A) Correct. The passage states that GDP is determine by size of the labor force and productivity of the labor force. The passage states that the size of the labor force has decreased. If productivity remained the same because there were no technological advances, then GDP will decline.

(B) This answer choice suggests that productivity has increased; this could offset the decrease in the labor force.

(C) This answer choice suggests that productivity will increase; this could offset the decrease in the labor force.

(D) If level of legal immigration to the Rugian Republic keeps increasing, then the declining population trend should reverse, and GDP should go up as the labor force increases.

(E) This answer choices suggests that the size of the labor force will increase, which may offset the population decline.

_________________

Founder of GMAT Club

Just starting out with GMAT? Start here... or use our Daily Study Plan

Co-author of the GMAT Club tests

Current Student
Joined: 08 Jan 2015
Posts: 82

### Show Tags

24 Jun 2016, 01:27
bb, the passage gives information that the population declined, but in the explanation of the correct answer choice A and other choices, you say that "the size of the labor force has decreased.", which requires additional assumption, that "population decline = labour force decline".
Retired Moderator
Joined: 14 Dec 2013
Posts: 3195
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)

### Show Tags

30 Jun 2016, 03:33
manlog wrote:
bb, the passage gives information that the population declined, but in the explanation of the correct answer choice A and other choices, you say that "the size of the labor force has decreased.", which requires additional assumption, that "population decline = labour force decline".

Please refer to the slight change in wording in the first sentence of the passage.
Manager
Joined: 03 Jan 2017
Posts: 178

### Show Tags

27 Apr 2017, 05:43
Great question, thank you!

I'm unsure if I get it right: "There have been no technological developments that would increase the productivity of the labor force" doesn't this damage the whole argument? because if there was no increase in productivity, how then would GDP remained the same?

thank you
Retired Moderator
Joined: 14 Dec 2013
Posts: 3195
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)

### Show Tags

30 Apr 2017, 04:04
SeregaP wrote:
Great question, thank you!

I'm unsure if I get it right: "There have been no technological developments that would increase the productivity of the labor force" doesn't this damage the whole argument? because if there was no increase in productivity, how then would GDP remained the same?

thank you

Yes your understanding is correct - consider this way:

GDP ∝ Population x Productivity

If GDP is to remain same while population goes down, the productivity must go up.
Intern
Joined: 15 Aug 2017
Posts: 15

### Show Tags

02 Oct 2017, 15:05
sayantanc2k wrote:
SeregaP wrote:
Great question, thank you!

I'm unsure if I get it right: "There have been no technological developments that would increase the productivity of the labor force" doesn't this damage the whole argument? because if there was no increase in productivity, how then would GDP remained the same?

thank you

Yes your understanding is correct - consider this way:

GDP ∝ Population x Productivity

If GDP is to remain same while population goes down, the productivity must go up.

Hi, Sayantanc2k

I am not sure I am understanding the explanation correctly. Could you please point to my misunderstanding?

If GDP = Labor*Productivity then, if Labor force has declined, the only possible explanation for GDP not declining is Productivity increasing. Alternatively, if there has been no productivity increase due to technological advances, then the GDP should be declining and resultantly since it "Has remained steady", this point WEAKENS the argument.
Re: V10-12 &nbs [#permalink] 02 Oct 2017, 15:05
Display posts from previous: Sort by

# V10-12

Moderators: chetan2u, Bunuel

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.