Last visit was: 24 Apr 2026, 08:19 It is currently 24 Apr 2026, 08:19
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
nightblade354
User avatar
Current Student
Joined: 31 Jul 2017
Last visit: 22 Apr 2026
Posts: 1,769
Own Kudos:
7,116
 [21]
Given Kudos: 3,305
Status:He came. He saw. He conquered. -- Going to Business School -- Corruptus in Extremis
Location: United States (MA)
Concentration: Finance, Economics
Expert
Expert reply
Posts: 1,769
Kudos: 7,116
 [21]
Kudos
Add Kudos
21
Bookmarks
Bookmark this Post
avatar
VidyaSV
Joined: 01 Dec 2019
Last visit: 03 Jan 2020
Posts: 3
Own Kudos:
Given Kudos: 5
Posts: 3
Kudos: 2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
nightblade354
User avatar
Current Student
Joined: 31 Jul 2017
Last visit: 22 Apr 2026
Posts: 1,769
Own Kudos:
7,116
 [3]
Given Kudos: 3,305
Status:He came. He saw. He conquered. -- Going to Business School -- Corruptus in Extremis
Location: United States (MA)
Concentration: Finance, Economics
Expert
Expert reply
Posts: 1,769
Kudos: 7,116
 [3]
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Pankaj0901
Joined: 18 Dec 2018
Last visit: 17 Dec 2022
Posts: 406
Own Kudos:
53
 [1]
Given Kudos: 737
Location: India
WE:Account Management (Hospitality and Tourism)
Posts: 406
Kudos: 53
 [1]
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
This was a bouncer for me. While I understood the passage well, I couldn't understand how the answer is B. :(
avatar
Muskkann
Joined: 07 Jun 2021
Last visit: 21 Jun 2022
Posts: 1
Given Kudos: 1
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Still I'm confused why the answer is B ...😶

Posted from my mobile device
User avatar
gurugmat
Joined: 28 Apr 2022
Last visit: 22 Apr 2026
Posts: 25
Own Kudos:
Given Kudos: 40
Posts: 25
Kudos: 9
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Pankaj0901
This was a bouncer for me. While I understood the passage well, I couldn't understand how the answer is B. :(

Hi Pankaj
Author concludes that People in US are not taxed less than people in other countries. He draws his conclusion based on the premise that people in the United States pay out of pocket for expenses that other countries pay for with tax amount. Here he equates American people using their own money to pay for their health care to paying tax. He extends the application of the term 'tax.' This is the flaw in author's argument. Option B says that and it is the right answer choice.
User avatar
Genivs1
Joined: 05 Sep 2023
Last visit: 15 Feb 2024
Posts: 5
Own Kudos:
3
 [1]
Given Kudos: 9
Posts: 5
Kudos: 3
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Muskkann
Still I'm confused why the answer is B ...😶

Posted from my mobile device


So I'll share my reasoning and hopefully this helps. In the sentences:
" United States government health-care expenditures are equivalent to about 5 percent of the gross domestic product, but private health-care expenditures represent another 7 percent. This 7 percent, then, amounts to a tax."

When the author says that the 7% private health-care expenditures amounts to tax -> this is not necessarily true. Suppose the total private health-care expenditures was 100 million, and the tax rate was 30% then the total tax would be about 30 million. According to the author this full amount (7% or 100 million) would amount to tax, yet clearly only 30 million amounts to tax. Thus B is the correct answer because the argument unreasonably extends the application of a key term: tax to mean the full 7% rather than only a portion of it which actually amounts to tax.

Hope this helps! And good luck to ya'll in your prep, you got this!

:)
User avatar
VerbalBot
User avatar
Non-Human User
Joined: 01 Oct 2013
Last visit: 04 Jan 2021
Posts: 19,423
Own Kudos:
Posts: 19,423
Kudos: 1,010
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club VerbalBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
GMAT Club Verbal Expert
7391 posts
501 posts
358 posts