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# A developing country can substantially increase its economic growth if

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Director
Joined: 30 Jan 2016
Posts: 661
Location: United States (MA)
A developing country can substantially increase its economic growth if  [#permalink]

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Updated on: 13 May 2018, 11:05
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55% (hard)

Question Stats:

58% (01:29) correct 42% (01:35) wrong based on 93 sessions

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A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.

The statements above, if true, most strongly support which one of the following claims?

(A) Once a developing country has at least one business in a modern industry, further investment in that industry will not contribute to the country's economic growth.
(B) In developing countries, there is greater competition within modern industries than within traditional industries.
(C) A developing country can increase its prospects for economic growth by providing added incentive for investment in modern industries that have not yet been pursued there.
(D) A developing country will not experience economic growth unless its businesspeople invest in modern industries.
(E) Investments in a modern industry in a developing country carry little risk as long as the country has at least one other business in that industry.

Source: LSAT

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Non progredi est regredi

Originally posted by Akela on 12 May 2018, 11:28.
Last edited by Akela on 13 May 2018, 11:05, edited 1 time in total.
Senior Manager
Joined: 14 Feb 2018
Posts: 380
Re: A developing country can substantially increase its economic growth if  [#permalink]

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12 May 2018, 23:08
(C) A developing country can increase its prospects for economic growth by providing added incentive for investment in modem industries that have not yet been pursued there.
- this can be rightly inferred.

(E) Investments in a modem industry in a developing country carry little risk as long as the country has at least one other business in that industry.
"Little risk means negligible risk" and inferring something like that would be extreme. It shows that there is no other factor that can cause increase in risk.
Thus, OOS.

IMO C.
Please correct me if I am wrong.

Sent from my Lenovo K53a48 using GMAT Club Forum mobile app
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Joined: 30 Jul 2017
Posts: 18
Re: A developing country can substantially increase its economic growth if  [#permalink]

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13 May 2018, 04:38
A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.

The statements above, if true, most strongly support which one of the following claims?

(A) Once a developing country has at least one business in a modern industry, further investment in that industry will not contribute to the country's economic growth.- At least makes it weird. The premise no where mentions for at least
(B) In developing countries, there is greater competition within modem industries than within traditional industries. Traditional industries out f scope.
(C) A developing country can increase its prospects for economic growth by providing added incentive for investment in modem industries that have not yet been pursued there.- This is one possible solution since it supports and it will help ppl mitigate the risk
(D) A developing country will not experience economic growth unless its businesspeople invest in modem industries. THis is nt what si mentioned in the passage. - Passage states that a country will progress if ppl invest in industries but everse is not true.
(E) Investments in a modem industry in a developing country carry little risk as long as the country has at least one other business in that industry. - the passage do not compare one business wit other.

Re: A developing country can substantially increase its economic growth if &nbs [#permalink] 13 May 2018, 04:38
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