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Twelve years ago and again five years ago, there were

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Re: Darfir CR [#permalink] New post 02 Sep 2010, 09:45
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joemama142000 wrote:
Twelve years ago and again five years ago, there were extended periods when the Darfir Republic's currency, the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on world markets, and Darfir's exports were up substantially. Now, some politicans are saying that in order to cause another similarily sized increase in exports, the government should allow the pundra to become weak again.

Which of the following if true provides the government with the strongest grounds to doubt the politician's recommendation, if followed will achieve its aim?

A) Several of the politicians now recommending that the pundra be allowed to beomce weak made that same recommendation before each of the last two periods of currency weakness

B) After several decades of operating well below peak capacity, Darfir's manufacturing sector is now near peak levels

C) The economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports significant

D) Those countries whos manufacturing products compete with Darfir's on the world market all have stable currencies

E) A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a baragain on world markets even without any weakening of the pundtra relative to other currencies



This is quite a typical format for a GMAT CR question: we learn that something worked in the past (in this question, weakening the currency), and the argument suggests it will work again. That might be a good argument if the situation now is identical to the situation in the past. But, if anything important has changed, what worked before might not work now. If you know that you're looking for an answer choice which describes something that has fundamentally changed since the last time the currency was weakened, then answer B here should 'jump off the page' as the correct answer: now, unlike before, there is no room to increase exports.
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Re: Darfir CR [#permalink] New post 03 Sep 2010, 01:42
will go with B
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Re: Darfir CR [#permalink] New post 06 Jan 2011, 10:01
OK, we are at peak levels, but since the currency is currently not weak, there is room for increase exports by actually weakening the currency.
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Re: Darfir CR   [#permalink] 06 Jan 2011, 10:01
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