Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Jul 2014, 06:31

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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Neither a rising standard of living nor balanced trade, by

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
VP
VP
User avatar
Joined: 03 Apr 2007
Posts: 1377
Followers: 2

Kudos [?]: 153 [1] , given: 10

GMAT Tests User Reviews Badge
Neither a rising standard of living nor balanced trade, by [#permalink] New post 23 Jul 2008, 17:26
1
This post received
KUDOS
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  25% (low)

Question Stats:

70% (02:20) correct 30% (01:33) wrong based on 630 sessions
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise

Please explain your answers
[Reveal] Spoiler: OA
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Director
Director
avatar
Joined: 01 Jan 2008
Posts: 629
Followers: 3

Kudos [?]: 127 [0], given: 1

GMAT Tests User
Re: CR-standard of living [#permalink] New post 23 Jul 2008, 18:31
goalsnr wrote:
Neither a rising standard of living nor balanced trade, by itself, establishes a countrys
ability to compete in the international marketplace. Both are required simultaneously since
standards of living can rise because of growing trade deficits and trade can be balanced by
means of a decline in a countrys standard of living.
If the facts stated in the passage above are true, a proper test of a countrys ability to be
competitive is its ability to

A. balance its trade while its standard of living rises

B. balance its trade while its standard of living falls

C. increase trade deficits while its standard of living rises

D. decrease trade deficits while its standard of living falls

E. keep its standard of living constant while trade deficits rise.

Please explain your answers


true test: absense of trade deficit while increasing standard of living -> A
B is incorrect because trade deficit is eliminated at expense of standard of living
C is incorrect because standard of living is increasing at the expense of trade balance
D is incorrect because that's just horrible - huge debt and falling standard of living
E is incorrect because standard of living is funded with trade deficit
Senior Manager
Senior Manager
avatar
Joined: 10 Mar 2008
Posts: 376
Followers: 3

Kudos [?]: 41 [0], given: 0

GMAT Tests User
Re: CR-standard of living [#permalink] New post 24 Jul 2008, 07:48
Only A supports the objective - that is remain competitive.

The key is to make sure that Trade deficit is balanced or less when standard of living increases.
Manager
Manager
avatar
Joined: 27 Mar 2008
Posts: 81
Followers: 1

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

Re: CR-standard of living [#permalink] New post 24 Jul 2008, 09:42
sondenso wrote:
The logic tested here is :

If A then B and C
A,
so B and C

A for me!


Can you explain this?


I chose (A) because it states "Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace. Both are required simultaneously..."

Hence, A fulfills both simultaneously

A. balance its trade while its standard of living rises
Intern
Intern
avatar
Joined: 30 Aug 2010
Posts: 6
Followers: 0

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

Re: CR-standard of living [#permalink] New post 01 Sep 2010, 05:20
droopy57 wrote:
sondenso wrote:
The logic tested here is :

If A then B and C
A,
so B and C

A for me!


Can you explain this?


I chose (A) because it states "Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace. Both are required simultaneously..."

Hence, A fulfills both simultaneously

A. balance its trade while its standard of living rises


Yes, I agree with you about your explanation.
But I can't understand sondenca's manner. Please tell me more clearly to know it, thanks a lot.
Manager
Manager
User avatar
Affiliations: The Earth organization, India
Joined: 25 Dec 2010
Posts: 194
WE 1: SAP consultant-IT 2 years
WE 2: Entrepreneur-family business 2 years
Followers: 4

Kudos [?]: 10 [0], given: 12

GMAT Tests User
Re: CR-standard of living [#permalink] New post 19 May 2011, 04:00
if anyone on this thread is still active.......

the answer is A because it restates the premise stated in line 1 of the stem ?
_________________

Cheers !!

Quant 47-Striving for 50
Verbal 34-Striving for 40

Manager
Manager
User avatar
Affiliations: The Earth organization, India
Joined: 25 Dec 2010
Posts: 194
WE 1: SAP consultant-IT 2 years
WE 2: Entrepreneur-family business 2 years
Followers: 4

Kudos [?]: 10 [0], given: 12

GMAT Tests User
Re: CR-standard of living [#permalink] New post 19 May 2011, 09:28
bhandariavi wrote:
A is a very clear answer.
31 secs



ravi sahab,

can u respond with the reasoning ? is it the same as i said ?
_________________

Cheers !!

Quant 47-Striving for 50
Verbal 34-Striving for 40

2 KUDOS received
Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 2049
Followers: 125

Kudos [?]: 873 [2] , given: 376

GMAT Tests User
Re: CR-standard of living [#permalink] New post 19 May 2011, 09:50
2
This post received
KUDOS
goalsnr wrote:
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise

Please explain your answers


I had little to no idea how standard of living & balanced trade dictate a country's economic competitiveness.

I gathered the information from these two statements in the passage and answered in less than 40 secs.

1st sentence:
Rising standard of living is good.
Balanced trade is good.
But, both should co-exist to gain a competitive edge.

2nd: Why both should co-exist?
Rising standard of living is not good when it is an effect of "growing trade deficits". Growing trade deficit(Bad)
Balanced trade is not good when it is an effect of "declining standard of living". declining standard of living(Bad)

A gives the competitive scenario:
"balance its trade while its standard of living rises"

Two goods together.

Ans: "A"
_________________

~fluke

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Manager
Manager
avatar
Joined: 21 Nov 2010
Posts: 133
Followers: 0

Kudos [?]: 5 [0], given: 12

Re: CR-standard of living [#permalink] New post 06 Sep 2011, 12:30
A

The question is a conclusion question with a twist.

The goal is for the trade deficit to be as low as possible (they won't owe too much) or balanced (they won't owe anything).
If the standard of living rises, the country is better.
Manager
Manager
avatar
Status: Bell the GMAT!!!
Affiliations: Aidha
Joined: 16 Aug 2011
Posts: 186
Location: Singapore
Concentration: Finance, General Management
GMAT 1: 680 Q46 V37
GMAT 2: 620 Q49 V27
GMAT 3: 700 Q49 V36
WE: Other (Other)
Followers: 5

Kudos [?]: 33 [0], given: 43

GMAT Tests User
Re: CR-standard of living [#permalink] New post 06 Sep 2011, 17:37
IMO A. The argument states that both balanced trade and good standard of living are prerequisites for a country's ability to compete in international markets. And then the question again asks the same thing. We need to find an option which confirms that. Only Option A does that.
_________________

If my post did a dance in your mind, send me the steps through kudos :)

My MBA journey at http://mbadilemma.wordpress.com/

Manager
Manager
avatar
Joined: 15 Nov 2010
Posts: 109
Followers: 4

Kudos [?]: 2 [0], given: 15

GMAT Tests User
Re: CR-standard of living [#permalink] New post 06 Sep 2011, 17:57
fluke wrote:
goalsnr wrote:
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise

Please explain your answers


I had little to no idea how standard of living & balanced trade dictate a country's economic competitiveness.

I gathered the information from these two statements in the passage and answered in less than 40 secs.

1st sentence:
Rising standard of living is good.
Balanced trade is good.
But, both should co-exist to gain a competitive edge.

2nd: Why both should co-exist?
Rising standard of living is not good when it is an effect of "growing trade deficits". Growing trade deficit(Bad)
Balanced trade is not good when it is an effect of "declining standard of living". declining standard of living(Bad)

A gives the competitive scenario:
"balance its trade while its standard of living rises"

Two goods together.

Ans: "A"



Thanks. The answer can't be explained any better.
Manager
Manager
User avatar
Joined: 20 Jul 2011
Posts: 152
GMAT Date: 10-21-2011
Followers: 0

Kudos [?]: 31 [0], given: 15

GMAT Tests User
Re: CR-standard of living [#permalink] New post 08 Sep 2011, 13:42
Quote:
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise


Answer: A
we want the answer option that agrees with the passage.

Question mentioned having one or the other - rising standard of living or balanced trade - is not enough to establish a country's ability to be competitive. It, then, went on to say 'both are required simultaneously'.
--> so we need balanced trade + rising standards of living together, which is A.
_________________

"The best day of your life is the one on which you decide your life is your own. No apologies or excuses. No one to lean on, rely on, or blame. The gift is yours - it is an amazing journey - and you alone are responsible for the quality of it. This is the day your life really begins." - Bob Moawab

Intern
Intern
avatar
Joined: 11 Aug 2013
Posts: 34
Followers: 0

Kudos [?]: 6 [0], given: 9

Re: CR-standard of living [#permalink] New post 19 Sep 2013, 17:44
bblast wrote:
if anyone on this thread is still active.......

the answer is A because it restates the premise stated in line 1 of the stem ?


Bblast, is this a solid strategy for the inference type question on the CR family of questions. From what I understand your looking for an answer that rephrases any of the premises? Does it work on every inference question?

What's your strategy for inference questions?
Intern
Intern
avatar
Joined: 14 May 2011
Posts: 10
Location: US
Followers: 0

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

GMAT ToolKit User
Re: Neither a rising standard of living nor balanced trade, by [#permalink] New post 01 Dec 2013, 12:45
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

My Approach:
This is an Inference Question. Argument structure states that X or Y alone are not sufficient alone to establish a country's ability to compete. (Till here it is not clear if we need a third indicator Z in addition to X and Y. Second line makes it clear).
Then it states that X and Y TOGETHER are required because country can have X (at the cost of Y) and can have Y (at the cost of X).

X - Rise in Standard of Living
Y - Balanced Trade

Inference - has to to 100% TRUE and has to be within the argument. It can be a paraphrase of given premises or a deduction after combining more than one given premises. The question stem does not mention INFERENCE word but it is clear that question is asking you to infer something.

Therefore - Only answer choice that has X and Y simultaneously is A. (Staying WITHIN THE SCOPE of argument and still saying something that MUST BE TRUE)

other choices can be eliminated as well once they are seen in context of X and Y
(B) is Y AND (NOT X) , (C) is (NOT Y) AND X , (D) is (NOT Y) and (NOT X) , (E) is another way of saying (NOT Y) and (NOT X).
_________________


-------------------------------------------------
Press +Kudos if you like what you see

Re: Neither a rising standard of living nor balanced trade, by   [#permalink] 01 Dec 2013, 12:45
    Similar topics Author Replies Last post
Similar
Topics:
1 Neither rising industrial output nor a high national minimum raghavakumar85 9 17 Jul 2010, 17:39
Neither a rising standard of living nor balanced trade, by prasannar 10 11 Jun 2008, 20:23
Neither a rising standard of living nor balanced trade, by Caas 2 05 Jun 2007, 09:08
Neither a rising standard of living nor balanced trade, by ayushi 8 10 Oct 2006, 14:11
Neither a rising standard of living nor balanced trade, by joemama142000 3 19 Dec 2005, 15:19
Display posts from previous: Sort by

Neither a rising standard of living nor balanced trade, by

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| 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®.