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

It is currently 25 Oct 2014, 13:20

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

Source is 1000 CR doc. The Commerce Department recently put

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 28 Jan 2006
Posts: 118
Followers: 1

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

Source is 1000 CR doc. The Commerce Department recently put [#permalink] New post 14 Aug 2006, 01:02
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Source is 1000 CR doc.

The Commerce Department recently put limits on machine-tool imports from two countries whose exports of machine tools into the United States have been substantial. As a result of these restrictions, analysts predict that domestic sales of machine tools manufactured in the United States are bound to rise considerably, starting in the very near future.
Which of the following, if true, would be most likely to cause the analysts’ prediction to be inaccurate?
(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.
(B) United States companies’ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.
_________________

All the best!!
shinewine

Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 140 [0], given: 0

Reviews Badge
 [#permalink] New post 14 Aug 2006, 01:48
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22
Manager
Manager
avatar
Joined: 28 Jan 2006
Posts: 118
Followers: 1

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

 [#permalink] New post 14 Aug 2006, 04:00
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22


Can you tell me , why A) is incorrect..
_________________

All the best!!
shinewine

VP
VP
avatar
Joined: 15 Jul 2004
Posts: 1474
Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
Followers: 15

Kudos [?]: 102 [0], given: 13

 [#permalink] New post 14 Aug 2006, 09:45
shinewine wrote:
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22


Can you tell me , why A) is incorrect..



D for me as well.

While the successful passage of the act may affect the machine tool industry, there's no certainty around it. D attacks the argument more closely. Besides it offers no insights into HOW will the investments be discouraged? Would the discouragement actually work .. because of these reasons the choice is only partially weakening the argument.

I am not 100% sure but I believe more than one choice in CR could be correct. You need to pick up the one that's the MOST relevant.

MATT could you offer some more insights or correct me if I am wrong. Would appreciate it...
Senior Manager
Senior Manager
User avatar
Joined: 11 Jul 2006
Posts: 385
Location: TX
Followers: 1

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

 [#permalink] New post 14 Aug 2006, 10:52
A is wrong because its says "would discourage investment in capital equipment" means it might or its possible in future but we cannot be certain about it.

D provides a more concrete reason that since US already has stockpiles of foreign tools the its will not be affected by the newly imposed limit.

Hence D
Director
Director
avatar
Joined: 10 Oct 2005
Posts: 531
Location: US
Followers: 1

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

 [#permalink] New post 14 Aug 2006, 11:17
A is wrong because it is more probabilistic than D...

D is convincing...since the inventories are already available it defeats the purpose...and hence the prediction.
CEO
CEO
User avatar
Joined: 20 Nov 2005
Posts: 2922
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Followers: 15

Kudos [?]: 82 [0], given: 0

 [#permalink] New post 14 Aug 2006, 12:17
D for me too.

Apart for reasons given above, A is thinking too far.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 140 [0], given: 0

Reviews Badge
 [#permalink] New post 14 Aug 2006, 19:08
dwivedys wrote:
shinewine wrote:
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22


Can you tell me , why A) is incorrect..



D for me as well.

While the successful passage of the act may affect the machine tool industry, there's no certainty around it. D attacks the argument more closely. Besides it offers no insights into HOW will the investments be discouraged? Would the discouragement actually work .. because of these reasons the choice is only partially weakening the argument.

I am not 100% sure but I believe more than one choice in CR could be correct. You need to pick up the one that's the MOST relevant.

MATT could you offer some more insights or correct me if I am wrong. Would appreciate it...


Additionally, investment startegies in research (A) is out of scope/off topic. Not relevant to current or near future sales volume of tools.
  [#permalink] 14 Aug 2006, 19:08
    Similar topics Author Replies Last post
Similar
Topics:
Is 1000CR a good source for practice??? MohitGarg 5 16 Sep 2012, 22:16
The Commerce Department recently put limits on machine-tool ritula 5 26 Mar 2009, 00:49
Has anyone done all of the questions in the 1000 CR doc? it mailtheguru 1 13 Sep 2006, 09:34
From 1000CR doc The media now devote more coverage to crime hsgmat 5 01 Nov 2005, 18:31
From 1000CR doc Though many insects die soon after hsgmat 6 01 Nov 2005, 18:29
Display posts from previous: Sort by

Source is 1000 CR doc. The Commerce Department recently put

  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®.