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CR: IRON ORE

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CR: IRON ORE [#permalink] New post 22 May 2008, 06:45
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Plx explain.

Country Y uses its scarce foreign-exchange reserves to buy scrap iron for recycling into steel. Although the steel thus produced earns more foreign exchange than it costs, that policy is foolish. Country Y’s own territory has vast deposits of iron ore, which can be mined with minimal expenditure of foreign exchange.

Which of the following, if true, provides the strongest support for Country Y’s policy of buying scrap iron abroad?
(A) The price of scrap iron on international markets rose significantly in 1987.
(B) Country Y’s foreign-exchange reserves dropped significantly in 1987.
(C) There is virtually no difference in quality between steel produced from scrap iron and that produced from iron ore.
(D) Scrap iron is now used in the production of roughly half the steel used in the world today, and experts predict that scrap iron will be used even more extensively in the future.
(E) Furnaces that process scrap iron can be built and operated in Country Y with substantially less foreign exchange than can furnaces that process iron ore
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Re: CR: IRON ORE [#permalink] New post 22 May 2008, 07:09
prasannar wrote:
Plx explain.

Country Y uses its scarce foreign-exchange reserves to buy scrap iron for recycling into steel. Although the steel thus produced earns more foreign exchange than it costs, that policy is foolish. Country Y’s own territory has vast deposits of iron ore, which can be mined with minimal expenditure of foreign exchange.

Which of the following, if true, provides the strongest support for Country Y’s policy of buying scrap iron abroad?
(A) The price of scrap iron on international markets rose significantly in 1987.
(B) Country Y’s foreign-exchange reserves dropped significantly in 1987.
(C) There is virtually no difference in quality between steel produced from scrap iron and that produced from iron ore.
(D) Scrap iron is now used in the production of roughly half the steel used in the world today, and experts predict that scrap iron will be used even more extensively in the future.
(E) Furnaces that process scrap iron can be built and operated in Country Y with substantially less foreign exchange than can furnaces that process iron ore


This is E.

The argument says that:
To reserve foreign money, Y should stop buying international scrap iron because Y can produce steel from its iron ore.
We want to weakens the argument, and one way to do that is to show why it is impractical to use the country's iron ore compare with the scrap iron.

E does that perfectly by saying that if Y uses its iron ore, then it needs to import substantial equipment for its furnaces; This is impractical because it goes against the purpose of saving foreign reserve.
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Re: CR: IRON ORE [#permalink] New post 22 May 2008, 07:35
Even though it may be lame but yeah E can be used to support the policy.
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Re: CR: IRON ORE [#permalink] New post 22 May 2008, 07:38
E for me too
Re: CR: IRON ORE   [#permalink] 22 May 2008, 07:38
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