Twelve years ago and again five years ago, there were : GMAT Critical Reasoning (CR)
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# Twelve years ago and again five years ago, there were

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Director
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Twelve years ago and again five years ago, there were [#permalink]

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28 Feb 2007, 23:57
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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 politicians are saying that, in order to cause another similarly 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 that the politicians' recommendation, if followed, will achieve its aim?

A. Several of the politicians now recommending that the pundra be allowed to become 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 operating at 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 is significant.

D. Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies.

E. A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.
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Director
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01 Mar 2007, 00:23
I pick B.

So what that the products will become cheap in the market if there is no capacity to produce larger volumes to satisfy the increased demand....
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01 Mar 2007, 00:27
Chose B.
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01 Mar 2007, 08:55
It's (B).

If the country can not manufacture more becasue it's manufacting industry is at peak level, there is no way to increase exort.
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01 Mar 2007, 10:55
it is E.

OA plzz?
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02 Mar 2007, 18:50
I choose B because in this case weaker currency is not going to achieve the intended result, increase in exports.
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02 Mar 2007, 18:55

The statement in E shows that an alternate cause produces the same effect, therfore undermining the argument.
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02 Mar 2007, 19:04
Can it be both? Seriously, can someone explain what makes E or B a better choice? They both seem to prove that politicians' argument is flawed.
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02 Mar 2007, 19:12
nervousgmat wrote:
Can it be both? Seriously, can someone explain what makes E or B a better choice? They both seem to prove that politicians' argument is flawed.

why B is wrong:
the rate at which the manufacturing sector is operating is irrelevant.
The stimulus doesnt even discuss this rate.

Every single GMAT causal conclusion is a flawed argument, because the author assumed that the cause is the only cause for the given effect.

So to weaken a causal conclusion, do 1 of the following.
1) show that an alternate cause results in the effect.
2) show that in the absense of the cause, the effect still occurs
3) show thaT when the cause happens, the effect does not
4) show that the causal relationship is reversed
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02 Mar 2007, 19:16
Do you mind telling us what book you have been using to learn this? I would love to read it!
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02 Mar 2007, 19:20
nervousgmat wrote:
Do you mind telling us what book you have been using to learn this? I would love to read it!

well i took a Testmasters LSAT class 1 year ago.
So i remember a lot from that.
I recommend that you pick up a copy of the LSAT LR Bible.
I can let you know how the GMAT CR bible compares when i receive it in the mail on monday.
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02 Mar 2007, 23:49
I do not have OA, but I selected B
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03 Mar 2007, 11:54
Swagatalakshmi wrote:
I do not have OA, but I selected B

aftre looking at the problem again, i think you might be right about B..
I am now town between B and E.
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03 Mar 2007, 13:33
OA is B.

http://www.gmatclub.com/phpbb/viewtopic ... five+years

While in E, something needs to happen (efficientcy needs to increase), and we dont know if it ever will, before doubting the politicians claim.

However, B states the plants are already running at near peak efficiency.
03 Mar 2007, 13:33
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