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When a community opens a large shopping mall, it often expects

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When a community opens a large shopping mall, it often expects  [#permalink]

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New post Updated on: 28 Jan 2019, 13:48
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Question Stats:

49% (01:57) correct 51% (02:10) wrong based on 173 sessions

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When a community opens a large shopping mall, it often expects a boost to the local economy, and in fact a large amount of economic activity goes on in these malls. Yet the increase in the local economy is typically much smaller than the total amount of economic activity that goes on in the mall.

Which one of the following, if true, most helps to explain the discrepancy described above?

(A) When large shopping malls are new they attract a lot of shoppers but once the novelty has worn off they usually attract fewer shoppers than does the traditional downtown shopping district.

(B) Most of the money spent in a large shopping mall is spent by tourists who are drawn specifically by the mall and who would not have visited the community had that mall not been built.

(C) Most of the jobs created by large shopping malls are filled by people who recently moved to the community and who would not have moved had there been no job offer in the community.

(D) Most of the money spent in a large shopping mall is money that would have been spent elsewhere in the same community had that mall not been built.

(E) Most of the jobs created by the construction of a large shopping mall are temporary, and most of the permanent jobs created are low paying.

Source: LSAT
Difficulty Level: 700

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Originally posted by Akela on 20 Aug 2017, 02:17.
Last edited by SajjadAhmad on 28 Jan 2019, 13:48, edited 1 time in total.
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Re: When a community opens a large shopping mall, it often expects  [#permalink]

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New post 28 Jan 2019, 06:05
Akela wrote:
When a community opens a large shopping mall, it often expects a boost to the local economy, and in fact a large amount of economic activity goes on in these malls. Yet the increase in the local economy is typically much smaller than the total amount of economic activity that goes on in the mall.

Which one of the following, if true, most helps to explain the discrepancy described above?

(A) When large shopping malls are new they attract a lot of shoppers but once the novelty has worn off they usually attract fewer shoppers than does the traditional downtown shopping district.
(B) Most of the money spent in a large shopping mall is spent by tourists who are drawn specifically by the mall and who would not have visited the community had that mall not been built.
(C) Most of the jobs created by large shopping malls are filled by people who recently moved to the community and who would not have moved had there been no job offer in the community.
(D) Most of the money spent in a large shopping mall is money that would have been spent elsewhere in the same community had that mall not been built.
(E) Most of the jobs created by the construction of a large shopping mall are temporary, and most of the permanent jobs created are low paying.

Source: LSAT



A large amount of economic activity goes on in malls when they are opened.
Yet the increase in the local economy is typically much smaller than the total amount of economic activity that goes on in the mall.

This is a paradox, right? A new mall has a lot of economic activity but overall the local economy does not show this increased activity. The new activity should add to the previous activity and show the same increase in the economic activities of the local economy.

(A) When large shopping malls are new they attract a lot of shoppers but once the novelty has worn off they usually attract fewer shoppers than does the traditional downtown shopping district.

We are talking about the case of newly opened malls. What happens later is irrelevant.

(B) Most of the money spent in a large shopping mall is spent by tourists who are drawn specifically by the mall and who would not have visited the community had that mall not been built.

This says that the mall brings in new economic activity. This should increase the overall local economy's activity too. It doesn't explain the paradox.

(C) Most of the jobs created by large shopping malls are filled by people who recently moved to the community and who would not have moved had there been no job offer in the community.

More people coming in to get more jobs would mean more economic activity. This should show in the local economy's activity too.

(D) Most of the money spent in a large shopping mall is money that would have been spent elsewhere in the same community had that mall not been built.

This tells us that the economic activity of the mall was just the economic activity that was happening elsewhere in the same community before. So if people were buying clothes from the local store before, now they are buying from the mall and not from the local store. So overall, the economy may not have seen a big increase in the activity because if activity increased in the mall, it reduced in local shops. This explains the paradox.

(E) Most of the jobs created by the construction of a large shopping mall are temporary, and most of the permanent jobs created are low paying.

Construction of the mall is irrelevant to the argument.

Answer (D)
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Re: When a community opens a large shopping mall, it often expects  [#permalink]

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New post 20 Aug 2017, 04:54
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Masshole wrote:
When a community opens a large shopping mall, it often expects a boost to the local economy, and in fact a large amount of economic activity goes on in these malls. Yet the increase in the local economy is typically much smaller than the total amount of economic activity that goes on in the mall.

Which one of the following, if true, most helps to explain the discrepancy described above?


If a large shopping mall is operated, it is expected that the economic activity that goes on in that mall will contribute to the local economy. However, the increase in the local economy doesn't equal to the total amount of economic activity in that mall. Thus, there must be an amount of economic activity in that mall isn't created for new, it is taken from elsewhere. D conveys this well.
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Re: When a community opens a large shopping mall, it often expects   [#permalink] 20 Aug 2017, 04:54
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