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24 Feb 2005, 07:06
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From a letter to the commercial editor of a newspaper: Your article of January 9 drew attention to the large deficit in Playland's balance of payments that has worsened over the past three years. Yet, you favor the recent trade treaty signed between Playland and Workland. That treaty results in a lowering of our import duties that will flood us with Workland's goods. This will only exacerbate our balance of trade. How can you be in favor of the treaty?
Which of the following considerations would weaken the letter writer's argument?
(A)Import diversion versus import creation.
(B)Prices paid by importers versus prices paid by consumers
(C)Economic goals versus political goals
(D) Duties levied increase government revenue
(E)Free trade versus protectionism
Which of the following considerations would weaken the letter writer's argument?
(A)Import diversion versus import creation.
(B)Prices paid by importers versus prices paid by consumers
(C)Economic goals versus political goals
(D) Duties levied increase government revenue
(E)Free trade versus protectionism
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24 Feb 2005, 07:20
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I would pick up B.
(A)Import diversion versus import creation
I don't see any import creation over here and so its out of scope.
(B)Prices paid by importers versus prices paid by consumers
If the prices paid by importers are reduced, then the prices paid by consumer are also reduced.
(C)Economic goals versus political goals
Out of Scope
(D) Duties levied increase government revenue
It strengthens it.
(E)Free trade versus protectionism
It could be true and might not hold in all cases.
I speculated between B and E and picked up B.
(A)Import diversion versus import creation
I don't see any import creation over here and so its out of scope.
(B)Prices paid by importers versus prices paid by consumers
If the prices paid by importers are reduced, then the prices paid by consumer are also reduced.
(C)Economic goals versus political goals
Out of Scope
(D) Duties levied increase government revenue
It strengthens it.
(E)Free trade versus protectionism
It could be true and might not hold in all cases.
I speculated between B and E and picked up B.
Tough for me...
) 
