DemographicsEssential Goods (68%)Discretionary Items (24%)Luxury Purchases (8%)Young Adults62%31%7%Middle-aged74%19%7%Seniors71%21%8%High Income59%25%...
GMAT Information and Ideas : (Ideas) Questions
| Demographics | Essential Goods (\(68\%\)) | Discretionary Items (\(24\%\)) | Luxury Purchases (\(8\%\)) |
|---|---|---|---|
| Young Adults | \(62\%\) | \(31\%\) | \(7\%\) |
| Middle-aged | \(74\%\) | \(19\%\) | \(7\%\) |
| Seniors | \(71\%\) | \(21\%\) | \(8\%\) |
| High Income | \(59\%\) | \(25\%\) | \(16\%\) |
| Low Income | \(81\%\) | \(16\%\) | \(3\%\) |
In order to analyze how different demographic segments distribute their household budgets, economist Maria Rodriguez and her research team investigated retail spending patterns. The team categorized expenditures into three distinct areas: essential goods (including food, housing, and healthcare), discretionary items (covering entertainment, dining out, and electronics), and luxury purchases (encompassing jewelry, high-end fashion, and premium vehicles). Rodriguez's research team contends that essential goods represent the primary spending priority for each demographic segment and that essential goods comprise the largest expenditure category across all groups.
Which choice most effectively describes the table data that substantiate Rodriguez's research team's contention?
Young adults allocate \(62\%\) to essential goods and low-income households allocate \(81\%\), with essential goods comprising \(68\%\) of overall spending.
Essential goods expenditures vary from \(59\%\) among high-income demographics to \(81\%\) among low-income demographics.
Each demographic segment demonstrates essential goods spending, with luxury purchases forming the smallest expenditure category across most segments.
Essential goods spending never falls below \(59\%\) across any demographic, with essential goods representing \(68\%\) of total expenditures.
Step 1: Decode and Map the Passage
Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| In order to analyze how different demographic segments distribute their household budgets, economist Maria Rodriguez and her research team investigated retail spending patterns. |
|
| The team categorized expenditures into three distinct areas: essential goods (including food, housing, and healthcare), discretionary items (covering entertainment, dining out, and electronics), and luxury purchases (encompassing jewelry, high-end fashion, and premium vehicles). |
|
| Rodriguez's research team contends that essential goods represent the primary spending priority for each demographic segment and that essential goods comprise the largest expenditure category across all groups. |
|
Provide Passage Architecture & Core Elements
Main Point: Rodriguez's research team claims that essential goods are both the top spending priority for every demographic group and the largest expenditure category across all groups.
Argument Flow: The passage establishes a research context for studying household budget distribution, defines a three-category classification system for expenditures, and then presents the research team's central contention about essential goods dominating both individual demographic priorities and overall spending patterns.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- The research team made a two-part claim: essential goods are the primary priority for each demographic segment AND they're the largest category across all groups
- So the right answer should provide data that supports both parts - showing that essentials dominate for every single demographic group, plus giving the overall percentage that shows essentials are the largest category
Young adults allocate \(62\%\) to essential goods and low-income households allocate \(81\%\), with essential goods comprising \(68\%\) of overall spending.
✗ Incorrect
- Gives specific examples (young adults 62%, low income 81%) and overall percentage (68%)
- Only provides data for two demographics, not evidence that ALL demographics prioritize essentials
Essential goods expenditures vary from \(59\%\) among high-income demographics to \(81\%\) among low-income demographics.
✗ Incorrect
- Shows the range of essential goods spending (59% to 81%)
- Focuses on variation rather than demonstrating that essentials are primary for each group
- Doesn't establish that 59-81% means essentials are the top category for each demographic
Each demographic segment demonstrates essential goods spending, with luxury purchases forming the smallest expenditure category across most segments.
✗ Incorrect
- Correctly states each segment spends on essential goods
- Focuses on luxury purchases being smallest rather than essential goods being largest
- Doesn't provide the overall percentage that supports the 'largest category across all groups' claim
Essential goods spending never falls below \(59\%\) across any demographic, with essential goods representing \(68\%\) of total expenditures.
✓ Correct
- States essential goods spending 'never falls below 59%' across any demographic
- This threshold (59%) proves essentials are always the majority and therefore primary priority for every group
- Includes the 68% overall figure that shows essentials are the largest category across all groups
- Directly supports both parts of Rodriguez's team's contention with concrete evidence