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27 Aug 2019, 01:12
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
73% (02:03) correct
27%
(02:20)
wrong
based on 161
sessions
History
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Time
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Not Attempted Yet
Economist: At the insistence of the International Monetary Fund, India slashed import duties from an average of 90 percent in 1991 to 30 percent in 1997. Many feared that the result would be a devastating drop in Indian manufacturing due to competition with imported goods, but the doomsayers were wrong. Manufacturing output increased by 50 percent in that time. The increase was due to the decrease in duties, since, with the decrease, imports of goods used in manufacturing were much higher than imports of consumer goods.
Which of the following, if true, would most strengthen the economist’s argument?
A. A significant portion of manufacturers in India continued to produce goods from the same raw materials as before 1997 but at much lower cost.
B. Manufacturing increased significantly worldwide after 1992.
C. Production of goods and services in India was significantly enhanced by an increase in telecommunication infrastructure in the 1990s.
D. Economic growth did not increase everywhere in India in the 1990s and 2000s.
E. Much of the increase in manufacturing output was of goods for export.
Which of the following, if true, would most strengthen the economist’s argument?
A. A significant portion of manufacturers in India continued to produce goods from the same raw materials as before 1997 but at much lower cost.
B. Manufacturing increased significantly worldwide after 1992.
C. Production of goods and services in India was significantly enhanced by an increase in telecommunication infrastructure in the 1990s.
D. Economic growth did not increase everywhere in India in the 1990s and 2000s.
E. Much of the increase in manufacturing output was of goods for export.
akrockheartz19
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27 Aug 2019, 13:38
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Not sure why A is the correct answer.
The passage says that Manufacturing output increased by 50% in that time.
However, if choice A is true, the cost of purchasing went down. The plant capacity could still be the same. Not sure how that links with the conclusion.
The passage says that Manufacturing output increased by 50% in that time.
However, if choice A is true, the cost of purchasing went down. The plant capacity could still be the same. Not sure how that links with the conclusion.
prodigyazu
04 Sep 2019, 07:17
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akrockheartz19
Not sure why A is the correct answer.
The passage says that Manufacturing output increased by 50% in that time.
However, if choice A is true, the cost of purchasing went down. The plant capacity could still be the same. Not sure how that links with the conclusion.
The passage says that Manufacturing output increased by 50% in that time.
However, if choice A is true, the cost of purchasing went down. The plant capacity could still be the same. Not sure how that links with the conclusion.
I made the same mistake but then realised A is wrong. It is given in the stimulus that the increase in manufacturing output was due to the decrease in duties, since, with the decrease, imports of goods used in manufacturing were much higher than imports of consumer goods. This must mean that the plants were not operating at maximum capacity before 1997.
