Based on the information above, the marketing critic and the marketing professional disagree about which of the following propositions?

Question

A) Does private mortgage insurance guarantee that only financially prudent homebuyers will be able to buy homes?
B) Is private mortgage insurance the best example in the housing industry of an unfair charge?
C) Is private mortgage insurance required when the buyer pays at least 20 percent of the purchase price of a new home?
D) Does private mortgage insurance provide value to homebuyers?
E) Is private mortgage insurance the best way to insure lenders against loan risks?

Answer 1

Answer: D
Explanation: D) The marketing critic thinks that PMI has only one function: taking money from customers and giving it to corporations. The marketing professional says that it adds value by helping high-risk borrowers get mortgages. So they must disagree about Choice D. One thinks PMI is useless, and the other thinks it offers some value. Choice A: The keyword here is "only." The marketing critic would say "no" to Choice A, but the marketing professional might agree with the marketing critic on this one. We know that the marketing professional thinks that PMI has value, but we don't know if the marketing professional thinks that it is perfect. Choice B: Neither speaker takes a position on Choice B. Even the marketing critic, who hates PMI, might think that there's a better example out there. Choice C: Both speakers seem to agree about Choice C. The marketing professional never disputes the description. Choice E, like Choice A, goes too far. We don't know what the marketing professional thinks about Choice E. The marketing professional thinks that PMI provides value, but she might also believe that something else could be better.