Industrialists from the country Distopia were accused of : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

It is currently 04 Dec 2016, 02:13
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Industrialists from the country Distopia were accused of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

3 KUDOS received
VP
VP
avatar
Joined: 17 Jun 2008
Posts: 1397
Followers: 8

Kudos [?]: 286 [3] , given: 0

Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 31 Jul 2008, 18:29
3
This post received
KUDOS
11
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

50% (02:22) correct 51% (02:08) wrong based on 424 sessions

HideShow timer Statistics

Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.
[Reveal] Spoiler: OA

_________________

cheers
Its Now Or Never

Request Expert Reply
If you have any questions
you can ask an expert
New!
Senior Manager
Senior Manager
avatar
Joined: 06 Apr 2008
Posts: 449
Followers: 1

Kudos [?]: 137 [0], given: 1

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 31 Jul 2008, 18:35
spriya wrote:
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


IMO A)

B) does not affect argument
C) does not weaken or strengthen argument
D) makes argument stronger
E) has no relation
VP
VP
avatar
Joined: 17 Jun 2008
Posts: 1397
Followers: 8

Kudos [?]: 286 [0], given: 0

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 01 Aug 2008, 20:36
nmohindru wrote:
spriya wrote:
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


IMO A)

B) does not affect argument
C) does not weaken or strengthen argument
D) makes argument stronger
E) has no relation

Why do u think A is a flaw when it says investing during war leads to increased productivity?Again the argument is about profits expected from investment and how does this option affect the same.
_________________

cheers
Its Now Or Never

Senior Manager
Senior Manager
avatar
Joined: 06 Apr 2008
Posts: 449
Followers: 1

Kudos [?]: 137 [0], given: 1

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 01 Aug 2008, 22:18
spriya wrote:
nmohindru wrote:
spriya wrote:
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


IMO A)

B) does not affect argument
C) does not weaken or strengthen argument
D) makes argument stronger
E) has no relation

Why do u think A is a flaw when it says investing during war leads to increased productivity?Again the argument is about profits expected from investment and how does this option affect the same.


A) says "significant rise in productivity" which leads to increase in profits.
Senior Manager
Senior Manager
avatar
Joined: 06 Jul 2007
Posts: 285
Followers: 3

Kudos [?]: 51 [0], given: 0

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 02 Aug 2008, 00:49
spriya wrote:
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


B - if the expenses of the war are borne by others, industrialists are set to gain $4 billion dollars. This shows a flaw in the argument.
1 KUDOS received
VP
VP
avatar
Joined: 17 Jun 2008
Posts: 1397
Followers: 8

Kudos [?]: 286 [1] , given: 0

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 02 Aug 2008, 09:11
1
This post received
KUDOS
sanjay_gmat wrote:
spriya wrote:
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


B - if the expenses of the war are borne by others, industrialists are set to gain $4 billion dollars. This shows a flaw in the argument.

Here this sounds correct since the main purpose of the argument is based on gaining profit when that is itself attacked in (B) ,it becomes flaw

Rest regarding (A) ,rise in productivity does not say increase in profit until and unless mentioned explicitly.
(B) is better hence .

OA is B
_________________

cheers
Its Now Or Never

4 KUDOS received
Intern
Intern
avatar
Status: fighting hard..
Joined: 12 Jul 2010
Posts: 29
Schools: ISB, Hass, Ross, NYU Stern
Followers: 0

Kudos [?]: 10 [4] , given: 24

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 30 Aug 2010, 08:08
4
This post received
KUDOS
Industrialists of country D were accused of promoting country D's intervention in the war.
The next statement directly says - this cannot be true because overall profit was $4bn whereas federal expenses were $8bn.
The implicit assumption of the second sentence is that industry had to pay for the war expenses. .
Read the argument carefully, no such thing has been explicitly said.

Now, if the industry was not supposed to pay for the war expenses, why on earth would they be bothered about how much expense the govt will have to bear.
this is exactly what choice B says.
:)
Intern
Intern
avatar
Joined: 17 Mar 2010
Posts: 46
Followers: 0

Kudos [?]: 6 [0], given: 0

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 30 Aug 2010, 11:24
I am confused by this questions....Is there an official explanation?
4 KUDOS received
Intern
Intern
avatar
Joined: 21 Jun 2010
Posts: 6
Followers: 0

Kudos [?]: 8 [4] , given: 1

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 31 Aug 2010, 07:16
4
This post received
KUDOS
1
This post was
BOOKMARKED
The answer is B here .

Argument : Industrialists backed their nation's intervention in war to promote their business interests.

Counter Argument : This was not possible because , the war cost 8 billion whereas the profit was 4 billion only .

The flaw is that the argument assumes that those industralists who promote the war are the ones who bear the cost of war. Hence it is trying to direclty correlate between the war cost and business profit .

We will have to prove that the industralists who profited are not the ones who contributed to the war cost and the relevance is not there . B says that precisely.
Manager
Manager
avatar
Joined: 16 Mar 2010
Posts: 184
Followers: 3

Kudos [?]: 168 [0], given: 9

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 01 Sep 2010, 01:37
Yes this type of questions are confusing.. but OA is correct...
Intern
Intern
avatar
Joined: 02 Apr 2010
Posts: 48
Location: Mumbai
Followers: 1

Kudos [?]: 6 [0], given: 0

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 09 Oct 2010, 05:49
This question is very confusing...
_________________

Consider kudos for good explanations.

Manager
Manager
avatar
Joined: 28 Apr 2011
Posts: 195
Followers: 0

Kudos [?]: 8 [0], given: 6

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 04 Apr 2012, 03:22
IMO B....

finding assumption is the key here.......
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 210
Concentration: General Management, Operations
Schools: HBS '19 (S)
GMAT 1: 740 Q49 V42
Followers: 0

Kudos [?]: 29 [0], given: 349

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 20 Jan 2013, 01:33
This question is really really confusing ... is there an official explanation??
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 01 Oct 2013
Posts: 10436
Followers: 882

Kudos [?]: 191 [0], given: 0

Premium Member
Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 12 Sep 2014, 13:56
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 01 Oct 2013
Posts: 10436
Followers: 882

Kudos [?]: 191 [0], given: 0

Premium Member
Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 03 May 2016, 10:04
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
1 KUDOS received
Director
Director
User avatar
Joined: 04 Jun 2016
Posts: 656
GMAT 1: 750 Q49 V43
Followers: 45

Kudos [?]: 176 [1] , given: 36

Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 13 Jun 2016, 22:39
1
This post received
KUDOS
This is an excellent question.
It is a combo of find the assumption and then find the flaw question.
The correct solution to this question will be very satisfying to the test taker.

Lets quickly break the question stem in premise and conclusion

Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars in intervention. (Federal means government.)
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

This looks like a very cogent and strong argument. Why it is so strong:- because the argument is assuming that all 8 billion was invested by industrialist
Assumption):- Entire 8 billion was invested by the industrialist.

See it yourself by rereading the argument again this time with the ASSUMPTION
Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars as expenses for the intervention.
Assumption):- Entire 8 billion expense was borne by the industrialist.
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

Now we have found the ASSUMPTION.
And now we will find the flaw.
What if Industrialist gave only 1 billion and got 4 billion in return. Then it will mean Industrialist's motive was to make profit.

What option proves that Industrialist invested less and made more money and that was Industrialist main Aim. --- to make profit.
(B) The largest proportion of federal expenses is borne by those who receive no significant industrial profits.

CORRECT ANSWER IS B


Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.
_________________

Posting an answer without an explanation is "GOD COMPLEX". The world doesn't need any more gods. Please explain you answers properly.
FINAL GOODBYE :- 17th SEPTEMBER 2016.

Manager
Manager
avatar
Joined: 06 Jun 2014
Posts: 58
Followers: 0

Kudos [?]: 7 [0], given: 105

Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 17 Sep 2016, 18:35
LogicGuru1 wrote:
This is an excellent question.
It is a combo of find the assumption and then find the flaw question.
The correct solution to this question will be very satisfying to the test taker.

Lets quickly break the question stem in premise and conclusion

Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars in intervention. (Federal means government.)
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

This looks like a very cogent and strong argument. Why it is so strong:- because the argument is assuming that all 8 billion was invested by industrialist
Assumption):- Entire 8 billion was invested by the industrialist.

See it yourself by rereading the argument again this time with the ASSUMPTION
Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars as expenses for the intervention.
Assumption):- Entire 8 billion expense was borne by the industrialist.
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

Now we have found the ASSUMPTION.
And now we will find the flaw.
What if Industrialist gave only 1 billion and got 4 billion in return. Then it will mean Industrialist's motive was to make profit.

What option proves that Industrialist invested less and made more money and that was Industrialist main Aim. --- to make profit.
(B) The largest proportion of federal expenses is borne by those who receive no significant industrial profits.

CORRECT ANSWER IS B


Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


Hi
something that hangs me down on this question is the relation $8 Billion expenses or cost of the war and than says Profit for the industrials, and as we know Profit = Revenue - Cost, so I assume Revenue is 8 billion - Cost for the industrials to produce product or service $4 billion = Profit from the stem $ Billion. So do we need to look for the weekener here in this part. but in that case the assumption to hold the conclusion ts that teh profit shoud have been higher than $ 4 billiion or more than 50% of the revenue. but because these industrials made only 4 $ billion they are not supporting the war, and that would be that these industrials did not make substantial profits so they are not motivated to support the war. So if my reasoning is correct than we need to disprove that in fact there was a motive and that 50 % or less profit margins is significant or something along those line? or? show that even small not significant profit would be a good motive to support the war? and than B comes saying that most of the invollved businiess enteties who take part of the war business do not inccure high profit but they are still in war business. which means that thay are in teh game even for small profit would support the war. is that what B trying to convey?

any thought, what you think?
Expert Post
Verbal Expert
User avatar
Joined: 14 Dec 2013
Posts: 1936
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
Followers: 295

Kudos [?]: 1236 [0], given: 20

GMAT ToolKit User Premium Member Reviews Badge
Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 18 Sep 2016, 13:25
kzivrev wrote:
LogicGuru1 wrote:
This is an excellent question.
It is a combo of find the assumption and then find the flaw question.
The correct solution to this question will be very satisfying to the test taker.

Lets quickly break the question stem in premise and conclusion

Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars in intervention. (Federal means government.)
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

This looks like a very cogent and strong argument. Why it is so strong:- because the argument is assuming that all 8 billion was invested by industrialist
Assumption):- Entire 8 billion was invested by the industrialist.

See it yourself by rereading the argument again this time with the ASSUMPTION
Premise 1) Industrialist of Nation D are accused of intervening in civil war of Nation A to ensure profit
Premise 2) Government of Nation D's used 8 billion dollars as expenses for the intervention.
Assumption):- Entire 8 billion expense was borne by the industrialist.
Premise 3) Industrialist only gained 4 billion
Conclusion) Since money invested was 8 billion and Industrialist get only 4 billion in return, their motive was not to make profit. DONT ACCUSE THEM

Now we have found the ASSUMPTION.
And now we will find the flaw.
What if Industrialist gave only 1 billion and got 4 billion in return. Then it will mean Industrialist's motive was to make profit.

What option proves that Industrialist invested less and made more money and that was Industrialist main Aim. --- to make profit.
(B) The largest proportion of federal expenses is borne by those who receive no significant industrial profits.

CORRECT ANSWER IS B


Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists’ facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia’s federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists’ facilities in Arcadia totaled only four billion dollars.
Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?
(A) During the Arcadian war, many Distopian industrialists with facilities located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
(B) The largest proportion of Distopia’s federal expenses is borne by those who receive no significant industrial profits.
(C) Most Distopian industrialists’ facilities located in Arcadia are expected to maintain the level of profits they achieved during the war.
(D) Distopian industrialists’ facilities in Arcadia made substantial profits before the events that triggered the civil war.
(E) Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.


Hi
something that hangs me down on this question is the relation $8 Billion expenses or cost of the war and than says Profit for the industrials, and as we know Profit = Revenue - Cost, so I assume Revenue is 8 billion - Cost for the industrials to produce product or service $4 billion = Profit from the stem $ Billion. So do we need to look for the weekener here in this part. but in that case the assumption to hold the conclusion ts that teh profit shoud have been higher than $ 4 billiion or more than 50% of the revenue. but because these industrials made only 4 $ billion they are not supporting the war, and that would be that these industrials did not make substantial profits so they are not motivated to support the war. So if my reasoning is correct than we need to disprove that in fact there was a motive and that 50 % or less profit margins is significant or something along those line? or? show that even small not significant profit would be a good motive to support the war? and than B comes saying that most of the invollved businiess enteties who take part of the war business do not inccure high profit but they are still in war business. which means that thay are in teh game even for small profit would support the war. is that what B trying to convey?

any thought, what you think?


The author claims that Distopian federal spends $8 billions for the war ( cash out flow = $8 billion) and the profit of the industrialists is $4 billions ( cash inflow = $ 4 billion). The net cash outflow for Distopians is therefore $4 billion. Hence the war is not beneficial for Distopia. ( The revenue and cost for the industrialists do not matter because their net profit is given - you may take this way: net loss for the federal = $ 8 billion, net profit for the industrialists = $ 4 billion, hence overall net loss = $ 4 billion).

The above point of the author is challenged by stating that industrialists do not lose much because of federal expense and they have no incentive to save the federal expense- the profit they make from the war outweighs the losses they make by federal expenses. Thus it may be valid that they promote the civil war for their benefit.
Expert Post
Verbal Expert
User avatar
Joined: 14 Dec 2013
Posts: 1936
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
Followers: 295

Kudos [?]: 1236 [0], given: 20

GMAT ToolKit User Premium Member Reviews Badge
Re: Industrialists from the country Distopia were accused of [#permalink]

Show Tags

New post 03 Dec 2016, 10:35
The OA is correct and explanations provided in the thread appear sufficient. If there are any specific questions, please post them here and then click again on the "Request Expert Reply" button – users are requested not to click the button without posting their queries.
Re: Industrialists from the country Distopia were accused of   [#permalink] 03 Dec 2016, 10:35
    Similar topics Author Replies Last post
Similar
Topics:
9 Industrialists from the country Distopia were accused of PUNEETSCHDV 7 03 Sep 2012, 01:34
Industrialists from the country Distopia were accused of SumitShrivastava 2 07 Feb 2012, 08:09
18 Industrialists from the country Distopia were accused of enigma123 7 11 Nov 2011, 12:11
1 Industrialists from the country Distopia were accused of SudiptoGmat 11 20 Jan 2010, 09:23
Industrialists from the country Distopia were accused of javed 9 24 Apr 2007, 04:38
Display posts from previous: Sort by

Industrialists from the country Distopia were accused of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.