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Lowering entry barriers that foreign investors face in [#permalink]
02 Jul 2006, 15:40
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14. Lowering entry barriers that foreign investors face in entering a country's economy produces more interest and causes investments inflow. The inflow of investments causes the country's economy to boost. Boost of the economy creates many new jobs, which enables people to ask for bigger salaries. _____________________, which leads to the development of a strong basis for a stable economic situation in the country.
Which of the following is the best piece of evidence that would work in the logic above?
a. Bigger salaries mean more taxes paid to the government.
b. New interesting jobs attract people from abroad, who spend their incomes in this country.
c. Therefore, lowering of the entry barriers to foreign investors helps some people in the economy of the country under discussion.
d. The possibility to easier get better jobs with bigger payments leads to the desire of the population to pursue more education.
e. A big percentage of those people asking for bigger salaries get some increase.
Higher salaries-----> More people attarcted --------> More people will try to get higher salaries by getting education, which leads to the development of a strong basis for stable economy. _________________
This is not a difficult question. The correct answer is D.
a. We do not have information as to whether bigger salaries are granted or not. If only a small percentage of the requests to increase salaries is satisfied, there would not be a substantial increase in taxes.
b. Foreigners can rarely be the source of the strong base of the economy. The percentage of foreigners who bring in income (and therefore tax) to the country must be very high, in order to influence the basis for a stable economic situation.
c. This suggests that only some people would be benefited. There is a small chance that a better life of a few would influence the basis for a stable economic situation.
d. Education can be the basis for a more stable economic situation. The possibility for bigger payments can lead to the desire to get more education in order to qualify for bigger payments. Educated nation has the potential for development, therefore influencing the economic situation.
e. 'Some increase' does not say much about bettering the economic situation, let alone the development of the strong basis.