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yashsharma1
Joined: 18 Apr 2025
Last visit: 12 Jul 2026
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10 Apr 2026, 21:45
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The point of the question was to evaluate whether opening costmart can harm economy and not if costmart opens, will the bankruptcy rate go up. The bankruptcy going up, even if it hurts the economy to some extent, could be offset by some other benefit of opening costmart
Option C caters to the latter. It gives an answer to some degree that if most residents shop within city, then there will be many stores in the city and if costmart comes, all those stores will be hit and may go bankrupt. On the other hand, if most of them shop outside the city, then the city's purchases are happening from outside and the costmart opening will not impact THOSE STORES.
In the second scenario, there can still be stores operating in the city which are not serving the local population. Even if they are impacted, the local economy will still suffer. Hence B is not the correct answer
C asks the question if there are economic benefits as well. Depending on the answer, the benefots can be weighed against the economic loss and a decision to allow costmart to open can be arrived at.
This is my reasoning for choosing C over B. I chose B by the way in my try. If Sajjad1994 or GMATNinja can take a look
Option C caters to the latter. It gives an answer to some degree that if most residents shop within city, then there will be many stores in the city and if costmart comes, all those stores will be hit and may go bankrupt. On the other hand, if most of them shop outside the city, then the city's purchases are happening from outside and the costmart opening will not impact THOSE STORES.
In the second scenario, there can still be stores operating in the city which are not serving the local population. Even if they are impacted, the local economy will still suffer. Hence B is not the correct answer
C asks the question if there are economic benefits as well. Depending on the answer, the benefots can be weighed against the economic loss and a decision to allow costmart to open can be arrived at.
This is my reasoning for choosing C over B. I chose B by the way in my try. If Sajjad1994 or GMATNinja can take a look
24 Jun 2026, 05:48
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Why Option E Fails (The "Exclusivity" Trap)
Question E asks: Does Costmart plan to hire employees exclusively from within Metropolis?
Let’s apply the extreme answers here:
Extreme YES: "Yes, they will hire 100% of their workers from Metropolis."
Impact on Conclusion: This sounds good for the city, but does it tell us if the overall economy is preserved? What if those new jobs pay minimum wage, but the 20% of local retailers who went bankrupt used to pay high salaries? We still don't know the net economic impact.
Extreme NO: "No, they will not hire exclusively from Metropolis."
Impact on Conclusion: If they don't hire exclusively, it means they might hire 95% from Metropolis and 5% from the next town over. Or maybe 80% local and 20% outsiders. Does a 95% local hiring rate ruin the economy? No. Does an 80% rate ruin it? We don't know.
Question E asks: Does Costmart plan to hire employees exclusively from within Metropolis?
Let’s apply the extreme answers here:
Extreme YES: "Yes, they will hire 100% of their workers from Metropolis."
Impact on Conclusion: This sounds good for the city, but does it tell us if the overall economy is preserved? What if those new jobs pay minimum wage, but the 20% of local retailers who went bankrupt used to pay high salaries? We still don't know the net economic impact.
Extreme NO: "No, they will not hire exclusively from Metropolis."
Impact on Conclusion: If they don't hire exclusively, it means they might hire 95% from Metropolis and 5% from the next town over. Or maybe 80% local and 20% outsiders. Does a 95% local hiring rate ruin the economy? No. Does an 80% rate ruin it? We don't know.
24 Jun 2026, 10:15
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Editorial: In order to preserve the health of its local economy, Metropolis should not permit a Costmart warehouse department store to open within city limits. It has been demonstrated that when Costmart opens a warehouse department store within a city, the bankruptcy rate of local retailers increases in that city by twenty percent over the next several years.
Which of the following questions would be most useful for evaluating the conclusion of the editorial?
The editorial concludes that Metropolis should block Costmart because Costmart increases local retailer bankruptcies. The key issue is whether those bankruptcies mean the local economy is harmed overall. If Costmart also creates jobs, lowers prices, increases tax revenue, or brings other economic benefits, then the conclusion becomes weaker.
(A) Does the bankruptcy rate of local retailers in a city generally stabilize several years after a Costmart warehouse department store opens?
This is somewhat relevant, but not the best. Even if the rate later stabilizes, the question is still whether allowing Costmart would hurt or help Metropolis’s local economy overall.
(B) Do most residents of Metropolis currently do almost all of their shopping at stores within the city limits of Metropolis?
This could matter somewhat, but it is indirect. It does not directly tell us whether Costmart’s overall effect on the local economy would be harmful or beneficial.
(C) Have other cities that have permitted Costmart warehouse department stores within city limits experienced any economic benefits as a result?
This is correct. The editorial focuses only on one negative effect: more bankruptcies among local retailers. If other cities also gained important economic benefits from Costmart, then the argument against allowing Costmart becomes less convincing. If they did not, the argument becomes stronger.
(D) Is the bankruptcy rate of local retailers in Metropolis higher than in the average city that has permitted a Costmart warehouse department store within city limits?
This is not as useful. Metropolis’s current bankruptcy rate does not directly tell us whether opening Costmart would harm or help the local economy.
(E) Does Costmart plan to hire employees exclusively from within Metropolis for the proposed warehouse department store?
This is relevant but too narrow. Local hiring could be one benefit, but the broader question is whether Costmart creates any economic benefits that might offset the bankruptcies.
Answer: (C)
Which of the following questions would be most useful for evaluating the conclusion of the editorial?
The editorial concludes that Metropolis should block Costmart because Costmart increases local retailer bankruptcies. The key issue is whether those bankruptcies mean the local economy is harmed overall. If Costmart also creates jobs, lowers prices, increases tax revenue, or brings other economic benefits, then the conclusion becomes weaker.
(A) Does the bankruptcy rate of local retailers in a city generally stabilize several years after a Costmart warehouse department store opens?
This is somewhat relevant, but not the best. Even if the rate later stabilizes, the question is still whether allowing Costmart would hurt or help Metropolis’s local economy overall.
(B) Do most residents of Metropolis currently do almost all of their shopping at stores within the city limits of Metropolis?
This could matter somewhat, but it is indirect. It does not directly tell us whether Costmart’s overall effect on the local economy would be harmful or beneficial.
(C) Have other cities that have permitted Costmart warehouse department stores within city limits experienced any economic benefits as a result?
This is correct. The editorial focuses only on one negative effect: more bankruptcies among local retailers. If other cities also gained important economic benefits from Costmart, then the argument against allowing Costmart becomes less convincing. If they did not, the argument becomes stronger.
(D) Is the bankruptcy rate of local retailers in Metropolis higher than in the average city that has permitted a Costmart warehouse department store within city limits?
This is not as useful. Metropolis’s current bankruptcy rate does not directly tell us whether opening Costmart would harm or help the local economy.
(E) Does Costmart plan to hire employees exclusively from within Metropolis for the proposed warehouse department store?
This is relevant but too narrow. Local hiring could be one benefit, but the broader question is whether Costmart creates any economic benefits that might offset the bankruptcies.
Answer: (C)
