GMAT Practice Question Set #16 (Question 46-48)

Critical Reasoning Question #46: Budget Reform  
Time 0 0 : 0 0 : 0 0

During the presidential debates, representatives from some states were dissatisfied with recent budget reforms, saying the new budget changes fail to meet the goal of directing federal funds to states who were most weakened by the financial recession. Their criticism is primarily based on the fact that most states that now receive additional funding are states with major city populations that enjoyed a budget surplus last year. What the critics disregard, though, is the fact that all the states who had their funding increased had been identified by an assessment committee as having greater than 20% decline in economic output over the past year. So regardless of the states' budget surplus or deficit, the federal government has not failed to distribute funds fairly.

Which of the following is an assumption on which the argument depends?

(A)

Rather than being determined by budget surplus or deficit, the amount of funding a state needs depends on whether it has a major city or not.

(B)

The number of states that have received an increase in funding represents a significant proportion of all the states in the country.

(C)

The committee's assessment of states' financial needs has been deemed biased by the local media.

(D)

The assessment committee did not identify many states with greater than 20% decline in economic output other than those with major cities and budget surpluses in the last year.

(E)

States with budget deficits typically had more decline in economic output than did states with major cities and budget surpluses.

GMATTM is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.