Editorial : Regulations recently imposed by the government

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Editorial : Regulations recently imposed by the government [#permalink]

15 Nov 2011, 17:01

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Question Stats:

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21% (01:41) wrong

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Editorial: Regulations recently imposed by the government of Risemia call for unprecedented reductions in the amounts of pollutants manufacturers are allowed to discharge into the environment. It will take costly new pollution control equipment requiring expensive maintenance to comply with these regulations. Resultant price increases for Risemian manufactured goods will lead to the loss of some export markets.Clearly therefore, annual exports of Risemian manufactured goods will in the future occur at diminished levels. Which of the following, if true, most seriously weakens the argument in the editorial?

A. the need to comply with the new regulations will stimulate the development within Risemia of new pollution control equipment for which a strong worldwide demand is likely to emerge.
B. the proposed regulations include a schedule of fines for noncompliance that escalate steeply in cases of repeated noncompliance.
C. Savings from utilizing the chemicals captured by the pollution control equipment will remain far below the cost of maintaining the equipment.
D. By international standards, the levels of pollutants currently emitted by some of Risemia's manufacturing plants are not considered excessive.
E. The stockholders of most of Risemia's manufacturing corporations exert substantial pressure on the corporations to comply with environmental laws.

I have selected A first and then changed my mind purely because one equipment cannot be equal to all the manufactured goods and went for D. can someone please explain why I was wrong?

[Reveal] Spoiler: OA

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Re: Risemia [#permalink]

16 Nov 2011, 03:08

Hi egnima,

First, you should not boldface your confused choices. You make other cannot improve through critical thinking. Second, just spoil your choices in the question. OK? Please, edit your question :D. Thank you so much.

Let's I try to help you:

New regulation will make the price of good increase => decrease the export

Quote:

A. the need to comply with the new regulations will stimulate the development within Risemia of new pollution control equipment (NPCE) for which a strong worldwide demand is likely to emerge.

In this choice, you will realize that NPCE will become popular all over the world, and price of all product relate to that industry also increase while the demand is still remain comparably to the last year. So, export of Risemia will not be affected by increased price

Quote:

D. By international standards, the levels of pollutants currently emitted by some of Risemia's manufacturing plants are not considered excessive.

Does it stick to price, the main factor affected to the export of Risemia? This choice talk about standard of good. Ok, before and after regulation. The quality of Risemia products is acceptable. It does not prove anything. Rights?

Hope that help.
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Re: Risemia [#permalink] 16 Nov 2011, 03:08

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Editorial : Regulations recently imposed by the government

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