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28 May 2026, 19:00
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Demand for gold has been stagnant for five years now. However, despite the fact that prices and production amounts have also been steady during the last five years, gold mines experienced a twelve percent increase in profits this year.
Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:
A. Many smaller gold mines were acquired by a larger mining conglomerate, prompting a fall in the price of mining supplies as the number of potential buyers reduced.
B. Gold mines have reduced labor costs by switching from paying miners an hourly wage to paying them by the amount of ore mined.
C. The price of cyanide, a vital component of the chemical process used to extract pure gold from its ore, dropped over twenty-five percent.
D. Many nations that consume large amounts of gold increased their production of electronics, which require the use of gold as a conductor, yet their overall use of gold decreased.
E. Taxes on mining activities in gold producing regions were lowered.
The OA will be automatically revealed on Friday 29th of May 2026 07:00:29 PM Pacific Time Zone
Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:
A. Many smaller gold mines were acquired by a larger mining conglomerate, prompting a fall in the price of mining supplies as the number of potential buyers reduced.
B. Gold mines have reduced labor costs by switching from paying miners an hourly wage to paying them by the amount of ore mined.
C. The price of cyanide, a vital component of the chemical process used to extract pure gold from its ore, dropped over twenty-five percent.
D. Many nations that consume large amounts of gold increased their production of electronics, which require the use of gold as a conductor, yet their overall use of gold decreased.
E. Taxes on mining activities in gold producing regions were lowered.
The OA will be automatically revealed on Friday 29th of May 2026 07:00:29 PM Pacific Time Zone
BongBideshini
Joined: 25 May 2021
Last visit: 29 May 2026
Posts: 270
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Location: India
Concentration: Entrepreneurship, Marketing
Schools: HBS '27 Stanford '27 Wharton '27 Sloan '27
GPA: 3.8
WE:Engineering (Government)
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28 May 2026, 22:00
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A. Many smaller gold mines were acquired by a larger mining conglomerate, prompting a fall in the price of mining supplies as the number of potential buyers reduced.
This choice shows that the cost of mining supplies dropped. Lower expenses directly explain how profits could increase even when revenue remains steady.
B. Gold mines have reduced labor costs by switching from paying miners an hourly wage to paying them by the amount of ore mined.
Lowering labor costs reduces the overall operational expenses for the gold mines. This perfectly explains the 12 percent jump in profits this year.
C. The price of cyanide, a vital component of the chemical process used to extract pure gold from its ore, dropped over twenty-five percent.
A major drop in the price of a vital extraction chemical means production costs went down significantly. This explains why the mines became more profitable.
D. Many nations that consume large amounts of gold increased their production of electronics, which require the use of gold as a conductor, yet their overall use of gold decreased.
A decrease in the overall use of gold merely restates or deepens the mystery of stagnant demand. It does absolutely nothing to show how or why mining profits went up.
Correct
E. Taxes on mining activities in gold producing regions were lowered.
REJECT: Lower taxes mean the mines keep more of their revenue as profit. This directly explains the increase in profits without needing a change in gold prices or production.
Ans D
This choice shows that the cost of mining supplies dropped. Lower expenses directly explain how profits could increase even when revenue remains steady.
B. Gold mines have reduced labor costs by switching from paying miners an hourly wage to paying them by the amount of ore mined.
Lowering labor costs reduces the overall operational expenses for the gold mines. This perfectly explains the 12 percent jump in profits this year.
C. The price of cyanide, a vital component of the chemical process used to extract pure gold from its ore, dropped over twenty-five percent.
A major drop in the price of a vital extraction chemical means production costs went down significantly. This explains why the mines became more profitable.
D. Many nations that consume large amounts of gold increased their production of electronics, which require the use of gold as a conductor, yet their overall use of gold decreased.
A decrease in the overall use of gold merely restates or deepens the mystery of stagnant demand. It does absolutely nothing to show how or why mining profits went up.
Correct
E. Taxes on mining activities in gold producing regions were lowered.
REJECT: Lower taxes mean the mines keep more of their revenue as profit. This directly explains the increase in profits without needing a change in gold prices or production.
Ans D
ExpertsGlobal5
28 May 2026, 22:37
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demand for gold has been stagnant for five years now.
price and production have been steady during the last five years now.
conclusion- gold mines experienced 12% increase in profit this year.
A price of mining supplies got reduced that means the production had been done with lower expense. so this does explain why profit increased. reject.
B we know production has been stagnant and they are now paying by the amount of ore mined. so this clearly resolve the issue.
C main components which used to extract gold from has been cheaper now so it also reduce the production cost and allows for higher profit. reject.
D this has no impact whatsoever. this doesnt do much. so this is the ans.
E taxes have gone down that allow any business to have more profit on balance sheet. reject
ans D
price and production have been steady during the last five years now.
conclusion- gold mines experienced 12% increase in profit this year.
A price of mining supplies got reduced that means the production had been done with lower expense. so this does explain why profit increased. reject.
B we know production has been stagnant and they are now paying by the amount of ore mined. so this clearly resolve the issue.
C main components which used to extract gold from has been cheaper now so it also reduce the production cost and allows for higher profit. reject.
D this has no impact whatsoever. this doesnt do much. so this is the ans.
E taxes have gone down that allow any business to have more profit on balance sheet. reject
ans D
ExpertsGlobal5
