Neither a rising standard of living nor balanced trade, by : GMAT Critical Reasoning (CR)
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Neither a rising standard of living nor balanced trade, by

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23 Jul 2008, 17:26
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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

[Reveal] Spoiler: OA
If you have any questions
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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.

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
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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.
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24 Jul 2008, 09:42
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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
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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

But I can't understand sondenca's manner. Please tell me more clearly to know it, thanks a lot.
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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 ?
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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 ?
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19 May 2011, 09:50
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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

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.
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"
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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.
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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.
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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

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.
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.
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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

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.
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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?
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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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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

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).
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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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17 Aug 2014, 00:27
understanding the passage:-
Conclusion is : Both factors are required simultaneously .
Premise is : As standards of living increase trade deficit drops. But, when standards decrease then trade deficit

So answers should be saying, there should be a balance between both the parameters. Ideally, both should rise.

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 - Yes
(B) balance its trade while its standard of living falls - Once increases other falls. OFS
(C) increase trade deficits while its standard of living rises- Once increases while other falls. OFS

(D) decrease trade deficits while its standard of living falls - Once increases while other falls.
(E) keep its standard of living constant while trade deficits rise - Once increases while other is kept constant.
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04 Aug 2015, 20:46
Country A : Standard of living of people increases so people want to spend their money on more luxurious items and items which are not basic necessity.The demand of such items increases thus Country A starts importing more which leads to a trade deficit (Import >Export) ---Not good for the economy

Country B : Standard of living is on a decline so demand for items is less so the imports decrease.Trade gets Balanced (Import = Export).---Again not good for the economy.

Logically if we think..
X=Rising Standard of Living(1)

For Country A

X && not Y

For Country B

not X && Y

The condition will only be true for X && Y

and the only answer choice that is valid is A.
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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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17 Oct 2016, 14:57
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

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.
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"

Best explanation so far. Thanks Fluke!

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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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07 Nov 2016, 20:52
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

Decoding the argument
"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"[conclusion (rule)]
"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." [Premise-supporting the concl]

The question stems asks us to test the country's ability based on the rule mentioned. "A" makes it clear that both are required.
Re: Neither a rising standard of living nor balanced trade, by   [#permalink] 07 Nov 2016, 20:52
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