GMAT Exam > GMAT Questions > Prior to 1971, the United States was on vario...
Start Learning for Free
Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by "full faith and credit” of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.
Which of the following data sets can be best used by the author of the above argument to further his conclusion?
- a)Major economic indicators of United States since 1980.
- b)Expenditure on education and healthcare from 1960 to 2000.
- c)Money printed by the government as proportion of the Gross Domestic Product from 1950 to 1970.
- d)Growth in the difference between the revenue and expenditure figures for the government for the last 100 years beginning from 1901.
- e)Economic growth in the country in 1971 and in 1972.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Prior to 1971, the United States was on various forms of a gold standa...
Data Set to Support the Return of Gold Standard Argument
Introduction:
The given argument talks about the benefits of returning to a gold standard in the United States. To support this argument, the author needs to provide data that shows how the economy has performed historically and how it has changed since the abandonment of the gold standard in 1971.
Data set:
The best data set to support the return of the gold standard argument would be the growth in the difference between the revenue and expenditure figures for the government for the last 100 years beginning from 1901. This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy.
Heading: Historical Data on Government Finances
- The growth in the difference between the revenue and expenditure figures for the government is an important indicator of how well the government is managing its finances.
- This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy.
- The data for the last 100 years beginning from 1901 shows that the government has consistently spent more than it has earned in tax revenue.
Heading: Impact of Abandoning Gold Standard
- The abandonment of the gold standard in 1971 allowed the government to print money at will and spend more than it earns in tax revenue.
- This led to a significant increase in the difference between the revenue and expenditure figures for the government, which has continued to grow over the years.
- This has also led to a decrease in the value of the dollar and an increase in inflation.
Heading: Benefits of Return to Gold Standard
- A return to the gold standard would restrict the ability of the government to print money at will and spend more than it earns in tax revenue.
- This would lead to a decrease in the difference between the revenue and expenditure figures for the government and a more stable economy.
- Historical data shows that the economy has performed best under a gold standard.
Conclusion:
In conclusion, the growth in the difference between the revenue and expenditure figures for the government for the last 100 years beginning from 1901 is the best data set to support the return of the gold standard argument. This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy. The data shows that the government has consistently spent more than it has earned in tax revenue, and the abandonment of the gold standard in 1971 has allowed it to print money at will and spend more than it earns. A return to the gold standard would restrict the ability of the government to print money at will and spend more than it earns in tax revenue, leading to a more stable economy.
Introduction:
The given argument talks about the benefits of returning to a gold standard in the United States. To support this argument, the author needs to provide data that shows how the economy has performed historically and how it has changed since the abandonment of the gold standard in 1971.
Data set:
The best data set to support the return of the gold standard argument would be the growth in the difference between the revenue and expenditure figures for the government for the last 100 years beginning from 1901. This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy.
Heading: Historical Data on Government Finances
- The growth in the difference between the revenue and expenditure figures for the government is an important indicator of how well the government is managing its finances.
- This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy.
- The data for the last 100 years beginning from 1901 shows that the government has consistently spent more than it has earned in tax revenue.
Heading: Impact of Abandoning Gold Standard
- The abandonment of the gold standard in 1971 allowed the government to print money at will and spend more than it earns in tax revenue.
- This led to a significant increase in the difference between the revenue and expenditure figures for the government, which has continued to grow over the years.
- This has also led to a decrease in the value of the dollar and an increase in inflation.
Heading: Benefits of Return to Gold Standard
- A return to the gold standard would restrict the ability of the government to print money at will and spend more than it earns in tax revenue.
- This would lead to a decrease in the difference between the revenue and expenditure figures for the government and a more stable economy.
- Historical data shows that the economy has performed best under a gold standard.
Conclusion:
In conclusion, the growth in the difference between the revenue and expenditure figures for the government for the last 100 years beginning from 1901 is the best data set to support the return of the gold standard argument. This data set provides a historical perspective on how the government has managed its finances and how it has affected the economy. The data shows that the government has consistently spent more than it has earned in tax revenue, and the abandonment of the gold standard in 1971 has allowed it to print money at will and spend more than it earns. A return to the gold standard would restrict the ability of the government to print money at will and spend more than it earns in tax revenue, leading to a more stable economy.
Free Test
FREE
| Start Free Test |
Community Answer
Prior to 1971, the United States was on various forms of a gold standa...
Conclusion: " the voters should vote for a party that backs the return of the gold standard in the country."
major premise: "A gold standard restricts....Besides, the economy has historically performed best under a gold standard."
The question asks for an additional premise that will support the conclusion.
D is correct because it could show that the gold standard enable the US not to spend more than it earned. Thus, it could have performed better than I'm later years (after 1972).
major premise: "A gold standard restricts....Besides, the economy has historically performed best under a gold standard."
The question asks for an additional premise that will support the conclusion.
D is correct because it could show that the gold standard enable the US not to spend more than it earned. Thus, it could have performed better than I'm later years (after 1972).
|
Explore Courses for GMAT exam
|
|
Top Courses for GMATView all
Question Description
Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer?.
Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Prior to 1971, the United States was on various forms of a gold standard through which the value of the dollar was backed by gold reserves and paper money could be redeemed for gold on demand. Since 1971, the United States dollar has been a fiat currency backed by full faith and credit of the government and not backed by, valued in, or convertible into gold. A gold standard restricts the ability of government to print money at will and to spend more than it earns in tax revenue. Besides, the economy has historically performed best under a gold standard. Therefore, for reasons above, the voters should vote for a party that backs the return of the gold standard in the country.Whichofthefollowing data sets canbebest usedbytheauthoroftheabove argumenttofurther his conclusion?a)Major economic indicatorsofUnitedStatessince1980.b)Expenditureoneducationandhealthcare from 1960to2000.c)Moneyprintedbythegovernment as proportionoftheGross Domestic Product from 1950to1970.d)Growth inthedifference betweentherevenueand expenditure figuresforthegovernmentforthelast 100 years beginning from 1901.e)Economic growth inthecountry in 1971andin 1972.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
|
|
Explore Courses for GMAT exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup