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I think it is C.

The economist is arguing (although not very strongly) against the environmentalists' conclusion.

The second part is the environmentalists' conclusion and the first part supports it.

A/B - INCORRECT since both state that first part is a conclusion.
D - INCORRECT since it mentions that second part is Economist's conclusion.
E - INCORRECT. Infact neither statements support his conclusion.
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I believe it should be C.

C. The first supports the environmentalists’ conclusion; the second states that conclusion.

It is "great profit" that "can be made from tapping" that leads environmentalists to "conclude that Tropcorp has not acted wholly out of economic self-interest".
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I will go with C.

Tropicorp, which constantly seeks profitable investment opportunities, has been buying and clearing sections of tropical forest for cattle ranching, although pastures newly created there become useless for grazing after just a few years.

The company has not gone into rubber tapping, even though greater profits can be made from rubber tapping, which leaves the forest intact.

Thus, some environmentalists conclude that Tropicorp has not acted wholly out of economic self-interest.

However, these environmentalists are probably wrong. The initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch. Furthermore, there is a shortage of workers employable in rubber-tapping operations, and finally, taxes are higher on profits from rubber tapping than on profits from cattle ranching.

Part one is a premise.
Part two is an additional information about tropicorp.
Part three is the conclusion.
Part four is the premise which supports the conclusion.
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Should be C.

The first is not a conclusion, that leaves A,C and E.
Second is the conclusion of environmentalist, and the economist in fact is against this conclusion. So C.
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Should be C.

The first is not a conclusion, that leaves A,C and E.
Second is the conclusion of environmentalist, and the economist in fact is against this conclusion. So C.


I fully agree with C being correct and A/B/D wrong. But I am looking for reason for E being wrong.
Is there any rationale for kicking out E? It also seems to be correct choice.

The final argument is "these environmentalists are probably wrong".
So, aren't both of the boldfaces helping to build the final economist's argument?
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I disagree with the answer being C. The economist's argument is "However, these environmentalists are probably wrong" and his premise is "The initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch. Furthermore, there is a shortage of workers employable in rubber-tapping operations, and finally, taxes are higher on profits from rubber tapping than on profits from cattle ranching."

With that said, why is C the answer? The second part of C is what the environmentalists conclude, not what the economist concludes. That being said, E should be the answer.

Disagree? Let's chat about it.

Ah on second thought, I missed that C said environmentalists. Never mind, the answer is indeed C. Helps to read the statement carefully...
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BID (Boil It Down): Environ: Trop not acting in own interest; Economist: they are

The Goal: We need to identify the purpose of each statement, and the relationship between the two.

    1. The environmentalists’ conclusion
    2. The economist’s conclusion

The relationship between the two: The economist provides proof that downgrades the environmentalists’ conclusion.

I love this question because it really tests who's paying attention. Sloppy readers will conflate the economist and the environmentalists, and chances are, if you missed this question, that’s exactly what you did too.

So let’s take stock (and I’m going to color code the different parties here so that each one is more visually distinct as you read):

Economist: Tropicorp, which constantly seeks profitable investment opportunities, has been buying and clearing sections of tropical forest for cattle ranching, although pastures newly created there become useless for grazing after just a few years. The company has not gone into rubber tapping, even though greater profits can be made from rubber tapping, which leaves the forest intact. Thus, some environmentalists argue that Tropicorp’s actions do not serve even its own economic interest. However, the initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch; there is a shortage of workers employable in rubber-tapping operations; and taxes are higher on profits from rubber tapping than on profits from cattle ranching. Consequently, the environmentalists’ conclusion is probably wrong.

A. The first supports the conclusion of the economist’s argument; the second calls that conclusion into question.

B. The first states the conclusion of the economist’s argument; the second supports that conclusion.

C. The first supports the conclusion of the environmentalists’ argument; the second states that conclusion.

D. The first states the conclusion of the environmentalists’ argument; the second states the conclusion of the economist’s argument.

E. Each supports the conclusion of the economist’s argument.


The first bolded statement is a conclusion, but by whom? The environmentalists! How many options screw up even who is even making the argument in the first bolded statement? A, B, and E.

That leaves us with C and D.

Next let’s determine who is making the argument in the second bolded statement? The Economist. Notice we can now chuck option C?

That leaves us with the correct option. Option D. The first states the conclusion of the environmentalists’ argument; the second states the conclusion of the economist’s argument.

Choice D is correct. The first statement, which is preceded by the word “Thus,” is the environmentalists’ conclusion. The second statement, which is preceded by the word “Consequently,” is the author/economist’s conclusion.


The Bigger Picture

There's an important lesson in this question: can you pay attention/focus under timed pressure while your adrenaline is pumping?

The stats for this question show that most people miss it. Yet if you can focus in on even who is making each claim, it’s one of the easiest questions in the entire OG.

Remember this lesson! The GMAT lavishly rewards those who actually follow instructions and pay attention.

EMPOWERgmatVerbal
Quote:
Next let’s determine who is making the argument in the second bolded statement? The Economist. Notice we can now chuck option C?
Hi, could you take a look your explanation (specially the red part)?

The 2nd bold part is NOT ''Economist's argument''; It is ''environmentalists position''. So, choice D is not the correct answer; the correct answer is C.

Could you edit your explanation, please?
Thanks__
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Goal: Bold face

Premise 1: Tropicorp, which constantly seeks profitable investment opportunities, has been buying and clearing sections of tropical forest for cattle ranching, although pastures newly created there become useless for grazing after just a few years.

BD 1 (Alternative Solution to Premise 1): The company has not gone into rubber tapping, even though greater profits can be made from rubber tapping, which leaves the forest intact.

BD 2 (Environmentalist Conclusion): Thus, some environmentalists conclude that Tropicorp has not acted wholly out of economic self-interest.

Main Conclusion (Economist's Conclusion) : However, these environmentalists are probably wrong.


Support for the Main Conclusion: The initial investment required for a successful rubber-tapping operation is larger than that needed for a cattle ranch. Furthermore, there is a shortage of workers employable in rubber-tapping operations, and finally, taxes are higher on profits from rubber tapping than on profits from cattle ranching.


From the above reasoning Option C is the correct Answer.
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