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parag08
Joined: 02 Sep 2018
Last visit: 23 Sep 2025
Posts: 25
Own Kudos:
Given Kudos: 7
Location: India
Concentration: Entrepreneurship, Technology
Schools: Stanford (S) LBS '26 (S) HEC '26
GMAT Focus 1: 695 Q87 V85 DI82 
GPA: 3.3
WE:General Management (Computer Software)
17 Jul 2024, 04:50
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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?
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. (Irrelevant, as recession might or might not hit the country)
(D) The automobile industry in Country A will receive sufficient investment indefinitely. (Irrelevant, as it is nowhere mentioned)
(E) Country A's economy will become the most dominant in the automobile sector globally. (Irrelevant, nothing is said about being dominant)
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. (Innovation leads to global competitiveness, which in turn leads to benefits from the free trade agreement. While this seems logically sound, it is not a direct derivation from the provided assertions alone because it skips the step that innovation leads to competitiveness first.)
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. (It is clearly stated that the company will keep invovating as long as it receives funding, if it doesn't recieve funding it would stop innovation)
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. (Irrelevant, as recession might or might not hit the country)
(D) The automobile industry in Country A will receive sufficient investment indefinitely. (Irrelevant, as it is nowhere mentioned)
(E) Country A's economy will become the most dominant in the automobile sector globally. (Irrelevant, nothing is said about being dominant)
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. (Innovation leads to global competitiveness, which in turn leads to benefits from the free trade agreement. While this seems logically sound, it is not a direct derivation from the provided assertions alone because it skips the step that innovation leads to competitiveness first.)
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. (It is clearly stated that the company will keep invovating as long as it receives funding, if it doesn't recieve funding it would stop innovation)
17 Jul 2024, 04:51
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Answer is A
St 1 states If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. This can be logically derived from the premise
St 2 doesn't talk about direct correlation between innovation and free trade agreement
St 3 states of recession as a consequence of lack of innovation. This cannot be logically derived from the stem.
St 4-it cannot be logically derived that Country A will receive funding indefinitely
St 5-World domination in automation business was never the subject in the stem
St 1 states If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate. This can be logically derived from the premise
St 2 doesn't talk about direct correlation between innovation and free trade agreement
St 3 states of recession as a consequence of lack of innovation. This cannot be logically derived from the stem.
St 4-it cannot be logically derived that Country A will receive funding indefinitely
St 5-World domination in automation business was never the subject in the stem
17 Jul 2024, 05:44
Kudos
Bookmarks
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.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
logically derived
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.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
logically derived
