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If there is an oil-supply disruption resulting in higher

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Intern
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If there is an oil-supply disruption resulting in higher [#permalink] New post 30 Aug 2012, 23:52
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

87% (01:57) correct 13% (02:01) wrong based on 47 sessions
If there is an oil-supply disruption resulting in higher international oil prices, domestic oil prices in open-market countries such as the United States will rise as well, whether such countries import all or none of their oil

Which of the following conclusions is best supported by the statement above?

(A) Domestic producers of oil in open-market countries are excluded from the international oil market when there is a disruption in the international oil supply.
(B) International oil-supply disruptions have little, if any, effect on the price of domestic oil as long as an open-market country has domestic supplies capable of meeting domestic demand.
(C) The oil market in an open-market country is actually part of the international oil market, even if most of that country’s domestic oil is usually sold to consumers within its borders.
(D) Open-market countries that export little or none of their oil can maintain stable domestic oil prices even when international oil prices rise sharply.
(E) If international oil prices rise, domestic distributors of oil in open-market countries will begin to import more oil than they export.
[Reveal] Spoiler: OA
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Re: If there is an oil-supply disruption resulting in higher int [#permalink] New post 31 Aug 2012, 01:52
The answer would be C
As we are looking for a conclusion.If the domestic oil market in some way is actually a part of the international market then the price of the domestic oil would be directly dependent on that of the international oil market price(independent at how the domestic production of oil is consumed). Therefore any increase in the international oil price would result in the same increase in the domestic oil price.
Let me know if you have any doubt in particular option.
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Re: If there is an oil-supply disruption resulting in higher int [#permalink] New post 31 Aug 2012, 02:00
I'm looking at CR a whole lot different after reading the Powerscore CR Bible.

This question is basically a Must be True Q and only C is true.
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Re: If there is an oil-supply disruption resulting in higher int [#permalink] New post 31 Aug 2012, 03:52
For ‘find a conclusion’ based questions, the correct conclusion can only be supported by the facts stated in the question, not other assumptions (no matter how obvious) can be added.
Therefore-
a) The argument makes no mention of whether or not countries are excluded from the international market. Eliminate.
b) This is exactly the opposite of what the argument is saying. Be careful, because all the elements of the conclusion are mentioned in the argument which makes it attractive, but the argument actually opposes the conclusion. Eliminate
c) Correct, the argument accounts for the effect that international oil fluctations have on domestic prices, and accounts for the fact that domestic oil is sold domestically.
d) Again, this conclusion contradict what the argument is saying. Eliminate
e) This conclusion references behaviours (importing) that is not present in the argument.

What is the source for this question? I think GMAT type questions tend to conform to the ‘absolutely no assumptions allowed’ rule a bit more than this one did.
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Re: If there is an oil-supply disruption resulting in higher int [#permalink] New post 31 Aug 2012, 14:57
Expert's post
bradfris wrote:
For ‘find a conclusion’ based questions, the correct conclusion can only be supported by the facts stated in the question, not other assumptions (no matter how obvious) can be added.
Therefore-
a) The argument makes no mention of whether or not countries are excluded from the international market. Eliminate.
b) This is exactly the opposite of what the argument is saying. Be careful, because all the elements of the conclusion are mentioned in the argument which makes it attractive, but the argument actually opposes the conclusion. Eliminate
c) Correct, the argument accounts for the effect that international oil fluctations have on domestic prices, and accounts for the fact that domestic oil is sold domestically.
d) Again, this conclusion contradict what the argument is saying. Eliminate
e) This conclusion references behaviours (importing) that is not present in the argument.

What is the source for this question? I think GMAT type questions tend to conform to the ‘absolutely no assumptions allowed’ rule a bit more than this one did.


I second Brad's analysis. The other four choices are fairly easily eliminated, but (C) requires either an assumption (that there's no other reason for why the prices track each other) or outside knowledge (of how market's work – seems like it would be pretty reasonable outside knowledge for the GMAT to expect, but the GMAT really is strict about the "no outside knowledge" rule in CR).
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Re: If there is an oil-supply disruption resulting in higher int   [#permalink] 31 Aug 2012, 14:57
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