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# Country X complains that country Y's high tariffs on imported goods ha

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Math Expert
Joined: 02 Sep 2009
Posts: 55801
Country X complains that country Y's high tariffs on imported goods ha  [#permalink]

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24 May 2019, 00:31
00:00

Difficulty:

65% (hard)

Question Stats:

59% (02:23) correct 41% (02:22) wrong based on 83 sessions

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Country X complains that country Y's high tariffs on imported goods have artificially inflated the cost of cars imported from country X into country Y, and that this is the reason that few of country X's cars are sold in country Y. On the other hand, country X's very low tariffs allow country Y to sell many cars there at relatively low prices. Country X says that if country Y would lower its tariffs, then country X's cars would be able to compete in country Y and an equitable balance of trade would be achieved.

Which of the following, if true, would most undermine the validity of country X's explanation for the poor sales of its cars in country Y?

(A) In places where the tariffs on goods from both countries are equal, country Y's cars far outsell cars from country X.

(B) Cars imported from country Z sell poorly in country Y.

(C) In countries where tariffs on imported goods are higher than in country Y, country X sells more cars than does country Y.

(D) Other goods from country X sell poorly in country Y.

(E) Sales of country Y's cars are high even in countries that have higher tariffs on imported goods than does country X.

Spoiler: :: OFFICIAL EXPLANATION
Choice (A) is correct. Find the author's conclusion and evidence, and the assumption linking them. Weaken the argument by invalidating that assumption. The argument develops from evidence that Y's high tariffs make X's cars relatively expensive, but X's low tariffs make Y's car relatively cheap. The argument concludes that if Y lowers its tariffs, then real competition and an equitable balance of trade would result. Country X assumes that Y sells more cars in X than X sells in Y because of the price difference created by the different tariffs. This suggests a classic case of ignored alternatives. Look for a choice that suggests that there might be an alternative explanation besides the difference in tariffs that could explain the weakness of x's car sales relative to Y's. (A) weakens country X's argument by illustrating that the effect (more Y cars sold than X cars) is possible without the supposed cause (a tariff imbalance favoring y). This implies that something other than tariffs--the rEason offered by X for its poor performance in the car market--could very well explain the difference in sales (maybe X's car plain stinks).

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Joined: 07 May 2016
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Re: Country X complains that country Y's high tariffs on imported goods ha  [#permalink]

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24 May 2019, 07:44
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This is an interesting question. Why did we eliminate option C?
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Joined: 25 Sep 2017
Posts: 15
Re: Country X complains that country Y's high tariffs on imported goods ha  [#permalink]

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24 May 2019, 10:52
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azoz7 wrote:
This is an interesting question. Why did we eliminate option C?

because option C is doing the exact opposite of what the questions stem asks us to do. it is actually strengthening the case for the argument that in fact X's car are better than Y's (then the high import
duty on X's car in Y is a strong reason for weak sales despite better quality of cars from X)
Re: Country X complains that country Y's high tariffs on imported goods ha   [#permalink] 24 May 2019, 10:52
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