In 1960, 10 percent of every dollar paid in automobile insurance premiums went to pay costs arising from injuries incurred in car accidents. In 1990, 50 percent of every dollar paid in automobile insurance premiums went toward such costs, despite the fact that cars were much safer in 1990 than in 1960.
Which of the following, if true, best explains the discrepancy outlined above?

Question

Examsnet · Accepted Answer

Correct Answer is :  Health-care costs rose sharply between 1960 and 1990.

GMAT Verbal Reasoning Practice Test 6