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655-705 Level|   Inference|         
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GMAT Club Olympics 2024 (Day 7): An economist asserts that a free 16 Jul 2024, 23:20
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(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
     If the sufficient condition is not there, can we say there is no necessary condition? No. 

     S ---> N 
     N ---> S 
     S ---> N 
     no S ---> no N 
     no N ----> no S (we can only infer this) 

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
     This is the right ans choice, as we can say that necessary condition (FTA) is there when sufficient condition (innovate) is there. 

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
      We don't know. It could be the case that the automobile industry in Country A slows down the innovation when there is global recession. We cannot infer what will be the case in the event of a global recession from the given statements. 

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
      We cannot infer about Country A receiving sufficient investment indefinitely.

(E) Country A's economy will become the most dominant in the automobile sector globally.­
      We cannot infer that Country A's economy will become the most dominant in the automobile sector globally from the given statements. 

The right ans choice is B. 
 
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(A) NOT CORRECT. If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.

This is correct. But this is stated explicitly in the argument.

(B) NOT CORRECT. If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.

This is correct. But this is stated explicitly in the argument. This cannot be a further prediction

(C) CORRECT. If there is a global recession, the automobile industry in Country A will cease to innovate.

If there is a global recession, there will be less investments for innovation. Hence this could be a prediction

(D) NOT CORRECT. The automobile industry in Country A will receive sufficient investment indefinitely.

This can not be predicted for the given information.

(E) NOT CORRECT. Country A's economy will become the most dominant in the automobile sector globally.

From the given information, A's automobile industry will be competitive globally. A's entire economy can't predicted.
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(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally. already mentioned
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. can be predicted
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. irrelevent
(D) The automobile industry in Country A will receive sufficient investment indefinitely. cant be deduced
(E) Country A's economy will become the most dominant in the automobile sector globally. cant be predicted.­
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­An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
Explanation: This directly follows from the chain of reasoning provided. If sufficient investment is necessary for innovation, then not getting sufficient investment means innovation will cease. CORRECT

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
Explanation: This conclusion does not logically follow. The assertion is that benefiting from the free trade agreement is conditional on remaining competitive, not directly on innovation alone. While innovation is a step towards competitiveness, this option skips a link in the chain. INCORRECT

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
Explanation: This is not a direct logical derivation from the given assertions. There is no information about the effects of a global recession on innovation or investment. INCORRECT

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
Explanation: Irrelevant. This information is not supported by the given assertions. The assertions provide a conditional relationship but do not guarantee indefinite investment. INCORRECT

(E) Country A's economy will become the most dominant in the automobile sector globally.
Explanation: This is beyond the scope of the given assertions and cannot be logically derived from the provided conditions. INCORRECT

The correct answer is Option A­
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Sufficient investment→ Innovation → Will be competitive → will be benefited from FTA


(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. For sure 100 %

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. May be or may not be

(C) If there is a global recession, the automobile industry in Country A will cease to innovate. Irrelevant

(D) The automobile industry in Country A will receive sufficient investment indefinitely. Can not say for sure

(E) Country A's economy will become the most dominant in the automobile sector globally. Irrelevant

Hence Answer A
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Answer: A

It's a cause-and-effect relationship.

Receives sufficient investment (A) -> continues to innovate (B)

Does not continue to innovate (Not B) -> Not receiving sufficient investment (Not A)

Putting this in words, If it's not continuing to innovate, it means it's not receiving sufficient investment. Or If it does not receive sufficient investment, it will not continue to innovate.
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An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. (If A Then B does not equal to If not A Then not B, thus this choice is wrong)
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. (if A leads to B and B leads to C , it results in A lead to C; This choice exactly doing the same. Thus it is our answer)
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. (Cant infer this)
(D) The automobile industry in Country A will receive sufficient investment indefinitely. (Cant infer this)
(E) Country A's economy will become the most dominant in the automobile sector globally. (Cant infer this)
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­Based on the economist's assertions:
1. A free trade agreement benefits Country A's automobile industry if it remains globally competitive.
2. Competitiveness is maintained through innovation.
3. Innovation requires sufficient investment.From these assertions, the logical prediction that can be derived is:

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
This prediction directly follows from Assertion 3, which states that innovation depends on sufficient investment. If this condition is not met, according to the economist's reasoning, innovation will not continue, thereby affecting the industry's competitiveness and its ability to benefit from the free trade agreement.

(B): If the automobile industry in Country A continues to innovate => it will remain competive but we do not know whether it will be competitive globally to benefit from the free trade agreement.

(C): A global recession might affect investment, but it's not a guaranteed outcome. The argument focuses on investment, not external economic factors.

(D): There's no guarantee of indefinite investment. The argument only states sufficient investment is needed for continued innovation.

(E): Dominance is an extreme outcome not necessarily implied by the logic. The argument focuses on Country A's industry competitiveness, not global dominance.­
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­(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
Not a further prediction
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
can logically be derived checking the connection in the text
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
Cannot be derived
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
Indefinitely?
(E) Country A's economy will become the most dominant in the automobile sector globally.
cannot be derived from the text
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­Choice A

Economist's claim: Free trade agreement will Country A's automobile industry as long as conditions hold
Condition 1 : the industry remains competitive globally as as long as conditions hold
Condition 2 : it continues to innovate as long as conditions hold
Condition 3 : it receives sufficient investment

So, here
for
    A to be successful, B needs to be done
    B to be done, C needs to be done
    C to be done, D needs to be done

So, from above we can infer that D is a necessary condition for C,
And C is a necessary condition for B, and B is necessary condition for A.

Question : Inference

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. Correct Since D is a necessary condition for C: if necessary condition (D) is not met, then there is no outcome (C) . Here D = receive sufficient investment, and C = continue to innovate

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. Here C = continue to innovate, which is a necessary condition for B (remain competetive globally). We can only infer that if necessary condition is not met then, it will not lead to outcome ( on other words necessary condition will not lead to sufficiency) Incorrect

(C) If there is a global recession, the automobile industry in Country A will cease to innovate. We cannot infer how a global event would impact any of the conditions Incorrect

(D) The automobile industry in Country A will receive sufficient investment indefinitely. We cannot infer something concrete from conditional statements Incorrect

(E) Country A's economy will become the most dominant in the automobile sector globally. Same reasoning as D Incorrect
 
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Bunuel
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.
Show more
­Summary: Sufficient investment will promote continued innovation which in turn will help the industry become competitive, thereby benefitting from FTA.

Question type: Seems like inference/must be true question.

Analyzing option: C, D & E can be eliminated easily.
I have 2 logic for option A and B.

Case 1: Option A is the potential answer.
This seems to be a reversed form of conditional statement suff. fund---> continued innovation.
However, since insufficient fund may or may not deter innovation, it cannot said  to be completely true. Additionally, we have option B. Can some guide here? I am not sure if my logic is correct.

Case 2: Option B is the potential answer.
we know that, innovation-->competitiveness (assuming globally)--> benefit from FTA.
We can infer that innovation can lead to FTA benfits. I dont see flaw in this option whatsoever. Hence, B
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­We are given a few necessary assumptions and sufficient assumptions in the stimulus.

Option A - Correct. If a necessary condition/assumption is not satisfied, it automatically follows that the sufficient assumption will also not occur. 

Option B - The sufficient condition can exist on its own without leading to the sufficient condition. The country can continue to innovate without benefiting from the free trade agreement. But if it does benefit from the agreement, it has to necessarily innovate. There's a subtle difference.

Option C - If there is a global recession, one cannot assume that sufficient investment will not flow into the industry. It may or may not happen. Eliminate 

Option D - The conclusion is unwarranted. Nowhere does the argument mention about indefinite investment.

Option E - This conclusion is also unwarranted. Nowhere does it mention anything about the automobile sector being globally dominant.

Therefore, Option A
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Bunuel
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

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­OA is B.

Below is the explanation 
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Bunuel
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

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­
To derive a prediction logically from the economist's assertions, we need to follow the logical sequence provided:

1. A free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally.
2. The industry will remain competitive as long as it continues to innovate.
3. The industry will continue to innovate as long as it receives sufficient investment.

Now let's analyze each option:

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
- This directly follows from the third assertion: innovation requires sufficient investment. If investment is lacking, innovation will stop. Therefore, this prediction is logically derived from the assertions.

(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
- This option skips a step in the logical chain. Innovation leads to competitiveness, and competitiveness leads to benefiting from the free trade agreement. However, this statement assumes a direct link between innovation and benefit from the agreement, which is not explicitly stated.

(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
- This option introduces an external factor (a global recession) that is not addressed by the economist's assertions. Thus, it cannot be logically derived from the given statements.

(D) The automobile industry in Country A will receive sufficient investment indefinitely.
- This option is not logically derived from the assertions. The assertions do not guarantee indefinite investment; they only state the need for investment to maintain innovation.

(E) Country A's economy will become the most dominant in the automobile sector globally.
- This is not a logical prediction derived from the assertions. The statements only discuss the benefits of a free trade agreement, innovation, and competitiveness, not global dominance.

Therefore, the correct answer is:
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
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(A) Right.This can directly be derived from the last assertion.
(B) Wrong. Also this can also be derived from the assertions as if the automobile industry in Country A continues to innovate, it will stay globally competitive and therefore will benefit from the free trade agreement. But it is not direct as innovation doesn't guarantee directly the benefit from free trade.
(C) Wrong. This is irrelevant to the assertions of the economists.
(D) Wrong. Just because the sufficient investment is important according to the economist it doesn't mean that the country's industry will receive it indefinitely.
(E) Wrong. This is too exaggerated and the author doesn't make any comparisons with other industries.­
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(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. #Correct. No investment, no innovation
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. #For icompetitive, innovation is must, But mere innovation may not ensure competitive
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. #Outside context
(D) The automobile industry in Country A will receive sufficient investment indefinitely. #out of context
(E) Country A's economy will become the most dominant in the automobile sector globally. #out of context

Answer A­
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Bunuel
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.

Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle

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­(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.-- innovation depends on sufficient investment so if no suff investment then no innovation so correct interpretation
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.--It skips the intermediate steps and directly jumps to the end so not correct
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.--Irrelevant as talks about recession and in the passage no relation between the recession and any other factor
(D) The automobile industry in Country A will receive sufficient investment indefinitely.-- no information provided that suggests the industry will receive investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.-- doesnt provide any such information

Ans is ­(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate
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Ans : D

FTA >> ++ Country A if > automobile industry remains competitive globally >industry will remain competitive as long as it continues to innovate>> continue to innovate as long as it receives sufficient investment

A) Not necessary as cause = effect but effect is not equal to cause
B) Doesn't cover all assertions
C) Recession : Irrelevant
D)Goes with assertion as if country invests indefinitely then automobile industry will remain competitive and benefit country A
E) Extreme option
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Sufficient investment=> continued innovation=> global competitiveness =>free trade benefits economy.

Posted from my mobile device
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GMAT Club Olympics 2024 (Day 7): An economist asserts that a free 17 Jul 2024, 04:09
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Quote:
An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.

If the assertions above are correct, which of the following further predictions can logically be derived from them?

(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.
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We need to find a must-be-true statement.
The logic for the automobile industry:
(1) Receives sufficient investment --> (2) continues to innovate --> (3) remains competitive --> (4) benefits from a free trade agreement.

A. not guarantee is true. (A so B doesn't mean not A so not B)
B. it connects (2) with (4). True
C. out of scope
D. not sure
E. not sure

B wins.
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