GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 07 Dec 2019, 11:41

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# During the past three years of its present administration,

Author Message
TAGS:

### Hide Tags

Manager
Status: I am Midnight's Child !
Joined: 04 Dec 2009
Posts: 80
WE 1: Software Design and Development

### Show Tags

11 Apr 2011, 12:37
1
8
00:00

Difficulty:

65% (hard)

Question Stats:

59% (02:02) correct 41% (02:10) wrong based on 389 sessions

### HideShow timer Statistics

During the past three years of its present administration, Country M's foreign trade account shows a surplus of three million U.S. dollars. The foreign trade account weighs the value of products exported against the value of products imported. A surplus shows a greater value of exports than imports. Since during the previous administration of Country M the foreign trade account showed an average surplus of 4.5 million U.S. dollars, we can safely conclude the policies of Country M's present administration have led to fewer exports.

Which of the following, if true, would most weaken the argument above?

A. Over the last three years Country M's economy has grown steadily.
B. Domestic sale of products made in Country M has risen steadily over the last three years.
C. The present administration of Country M has raised the tariffs on some imported goods.
D. The value per item of Country M's imports has risen gradually over the last three years.
E. In the past three years, the value of Country M's imports has tripled.
Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 03 Feb 2011
Posts: 641

### Show Tags

11 Apr 2011, 13:48
E is pretty much the winner.
My reasoning is export - import = balance of trade. This amount can go down when the exports have decreased or when the imports have increased. So E is providing an alternate path to the conclusion. Hence it is a weakener

Posted from my mobile device
Intern
Status: Hardrocker
Joined: 22 Jun 2010
Posts: 30
Concentration: Entrepreneurship, General Management
GPA: 3.73
WE: Engineering (Energy and Utilities)

### Show Tags

11 Apr 2011, 23:07
since the question asks which of the following would most weaken the argument, the answer should be E.
_________________
Good Luck!
Manager
Joined: 08 Nov 2014
Posts: 75
Location: India
GPA: 3
WE: Engineering (Manufacturing)

### Show Tags

Updated on: 09 Jan 2015, 08:35
A. Over the last three years Country M's economy has grown steadily. Irrelevant because additional info of 'economy growth' requires many assumptions
B. Domestic sale of products made in Country M has risen steadily over the last three years. Irrelevant same as above
C. The present administration of Country M has raised the tariffs on some imported goods. tariffs raised but no mention of quantity
D. The value per item of Country M's imports has risen gradually over the last three years. can be true but no. of items not mentioned
E. In the past three years, the value of Country M's imports has tripled. import has tripled ...... plausible answer

Only D and E make some sense but again in option D no. of items is not given so the change in the value of imports cannot be determined.

Surplus FT account = Export value(E) - Import value(I)

From here it can be judged if export is constant , then Trade account surplus will only decrease if the value of import is increased. So option E weakens the statement.

kamalkicks wrote:
1. During the past three years of its present administration, Country M's foreign trade account shows a surplus of three million U.S. dollars. The foreign trade account weighs the value of products exported against the value of products imported. A surplus shows a greater value of exports than imports. Since during the previous administration of Country M the foreign trade account showed an average surplus of 4.5 million U.S. dollars, we can safely conclude the policies of Country M's present administration have led to fewer exports.

Which of the following, if true, would most weaken the argument above?

A. Over the last three years Country M's economy has grown steadily.
B. Domestic sale of products made in Country M has risen steadily over the last three years.
C. The present administration of Country M has raised the tariffs on some imported goods.
D. The value per item of Country M's imports has risen gradually over the last three years.
E. In the past three years, the value of Country M's imports has tripled.

PLEASE GIVE REASONING --- WHY NOT D

IMO E .

Even though D is a solid contender, I didn't choose D for the reason that the value per item has risen gradually. We do not know if the number of items has reduced in the past three years. So, the best option would be to go for E, which clearly states that the total import value has risen by 3 times.

_________________
"Arise, Awake and Stop not till the goal is reached"

Originally posted by veergmat on 09 Jan 2015, 08:30.
Last edited by veergmat on 09 Jan 2015, 08:35, edited 1 time in total.
Manager
Joined: 08 Nov 2014
Posts: 75
Location: India
GPA: 3
WE: Engineering (Manufacturing)

### Show Tags

09 Jan 2015, 08:32
A. Over the last three years Country M's economy has grown steadily. Irrelevant because additional info of 'economy growth' requires many assumptions
B. Domestic sale of products made in Country M has risen steadily over the last three years. Irrelevant same as above
C. The present administration of Country M has raised the tariffs on some imported goods. tariffs raised but no mention of quantity
D. The value per item of Country M's imports has risen gradually over the last three years. can be true but no. of items not mentioned
E. In the past three years, the value of Country M's imports has tripled. import has tripled ...... plausible answer

Only D and E make some sense but again in option D no. of items is not given so the change in the value of imports cannot be determined.

Surplus FT account = Export value(E) - Import value(I)

From here it can be judged if export is constant , then Trade account surplus will only decrease if the value of import is increased. So option E weakens the statement.

kamalkicks wrote:
1. During the past three years of its present administration, Country M's foreign trade account shows a surplus of three million U.S. dollars. The foreign trade account weighs the value of products exported against the value of products imported. A surplus shows a greater value of exports than imports. Since during the previous administration of Country M the foreign trade account showed an average surplus of 4.5 million U.S. dollars, we can safely conclude the policies of Country M's present administration have led to fewer exports.

Which of the following, if true, would most weaken the argument above?

A. Over the last three years Country M's economy has grown steadily.
B. Domestic sale of products made in Country M has risen steadily over the last three years.
C. The present administration of Country M has raised the tariffs on some imported goods.
D. The value per item of Country M's imports has risen gradually over the last three years.
E. In the past three years, the value of Country M's imports has tripled.

PLEASE GIVE REASONING --- WHY NOT D

IMO E .

Even though D is a solid contender, I didn't choose D for the reason that the value per item has risen gradually. We do not know if the number of items has reduced in the past three years. So, the best option would be to go for E, which clearly states that the total import value has risen by 3 times.
[/quote]
_________________
"Arise, Awake and Stop not till the goal is reached"
Manager
Joined: 22 Aug 2014
Posts: 134

### Show Tags

17 May 2015, 07:51
kamalkicks wrote:
1. During the past three years of its present administration, Country M's foreign trade account shows a surplus of three million U.S. dollars. The foreign trade account weighs the value of products exported against the value of products imported. A surplus shows a greater value of exports than imports. Since during the previous administration of Country M the foreign trade account showed an average surplus of 4.5 million U.S. dollars, we can safely conclude the policies of Country M's present administration have led to fewer exports.

Which of the following, if true, would most weaken the argument above?

A. Over the last three years Country M's economy has grown steadily.
B. Domestic sale of products made in Country M has risen steadily over the last three years.
C. The present administration of Country M has raised the tariffs on some imported goods.
D. The value per item of Country M's imports has risen gradually over the last three years.
E. In the past three years, the value of Country M's imports has tripled.

PLEASE GIVE REASONING --- WHY NOT D

IMO E .

Even though D is a solid contender, I didn't choose D for the reason that the value per item has risen gradually. We do not know if the number of items has reduced in the past three years. So, the best option would be to go for E, which clearly states that the total import value has risen by 3 times.

ITS E.
IF STILL SURPLUS GOOD RESULTS THEN IT PROVES THAT EXPORTS HAVE INCREASED
Intern
Joined: 13 Mar 2018
Posts: 49
Location: India
Concentration: Operations, General Management
GMAT 1: 720 Q49 V40
GMAT 2: 720 Q50 V36
GPA: 4
WE: Operations (Consumer Products)

### Show Tags

18 Jun 2019, 02:07
During the past three years of its present administration, Country M's foreign trade account shows a surplus of three million U.S. dollars. The foreign trade account weighs the value of products exported against the value of products imported. A surplus shows a greater value of exports than imports. Since during the previous administration of Country M the foreign trade account showed an average surplus of 4.5 million U.S. dollars, we can safely conclude the policies of Country M's present administration have led to fewer exports.

Which of the following, if true, would most weaken the argument above?

A. Over the last three years Country M's economy has grown steadily.
B. Domestic sale of products made in Country M has risen steadily over the last three years.
C. The present administration of Country M has raised the tariffs on some imported goods.
D. The value per item of Country M's imports has risen gradually over the last three years.
E. In the past three years, the value of Country M's imports has tripled.

For E think of the following situation:
export 1- import1= \$5 - \$0.5 (mill) = \$4.5 (mill)

All the answers have a loophole
value of imports has tripled
export2-\$1.5 (mill) = \$3 (mill) => export 2 = \$4.5 (mill)

Therefore, there's a case when the export value might have decreased. Therefore E has a loophole

A- NA
B- What about the production/assembly capacity that might have increased
C- Tarrifs on imported goods are mostly paid by the country/organization that is exporting from their end. Still in case of a negative tariff that is paid by the importer of the goods, the quantity or the total value of import is not mentioned
D- Total value is not mentioned

Re: During the past three years of its present administration,   [#permalink] 18 Jun 2019, 02:07
Display posts from previous: Sort by