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18 Jul 2024, 07:00
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
57% (02:05) correct
43%
(02:13)
wrong
based on 552
sessions
History
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Time
Result
Not Attempted Yet
In a recent government report, it was found that regions with a higher density of tech companies tend to have lower unemployment rates. The report suggests that the presence of these tech companies stimulates local economies by creating a high demand for skilled labor, which not only provides jobs within these companies but also boosts secondary employment in supporting industries. Based on this, the government is considering incentives to attract more tech companies to economically depressed regions.
If the statements above are true, which of the following must be true?
(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
(D) The overall economy of a region is always improved by the presence of tech companies.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
If the statements above are true, which of the following must be true?
(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
(D) The overall economy of a region is always improved by the presence of tech companies.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
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18 Jul 2024, 08:00
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GMAT Club Official Explanation:
Correct Answer: C. Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
If tech companies stimulate local economies through high demand for skilled labor and boost secondary employment, it naturally follows that in regions where these companies are densely concentrated, there will be a greater creation of jobs, both skilled and in the supporting industries. This is a pretty simple logical conclusion: companies create jobs, therefore more companies results into more jobs.
(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
It is not a guaranteed outcome. Not all regions may have the necessary conditions for this economic stimulation (like available skilled labor or infrastructure), making it a presumption rather than a certainty. There are reasons why tech companies concentrate in some regions rather than others.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
This statement presumes that incentives alone will lead to lower unemployment rates, but there is no guarantee that tech companies will actually come to the region, open an office, and hire people. Incentives alone cannot guarantee it, though they may stimulate it. Eliminate.
(D) The overall economy of a region is always improved by the presence of tech companies.
This choice is too extreme by using "always," which is too absolute and does not account for possible exceptions where tech companies might not improve the economy, possibly due to mismatched industry needs and local resources or during a tech crisis such as a dot com bust in 2000’s. Answer choices with “Always” in them will “usually” be wrong as they are too extreme. Eliminate.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
This answer introduces an idea about the lack of skilled labor, which was not mentioned in the initial statements. We do not know what kind of labor composition is in the economically depressed regions. Possibly that may be true that there is a lack of skilled labor but how would government incentives help with skilled labor? That's really a shot in the dark. There is no way to prove that 2 of these statements bundled into one are true. Eliminate
General Discussion
18 Jul 2024, 07:33
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The passage states:
Regions with a higher density of tech companies tend to have lower unemployment rates.
The presence of tech companies stimulates local economies by creating a high demand for skilled labor.
This demand provides jobs within tech companies and boosts secondary employment in supporting industries.
The government is considering incentives to attract tech companies to economically depressed regions based on these findings.
Now, let's evaluate each option:
(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
The passage suggests that tech companies stimulate local economies and reduce unemployment, but it does not provide direct evidence that this effect will occur in all regions without a high density of tech companies. This statement is plausible but not necessarily true based on the information given.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
The passage implies that attracting tech companies to an area with incentives would likely stimulate the local economy and create jobs, suggesting that unemployment rates would decrease. However, it does not guarantee that the decrease will be significant, only that tech companies tend to reduce unemployment where they are present.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
This statement aligns directly with the passage's explanation that tech companies create a high demand for skilled labor and boost secondary employment. It is a logical conclusion based on the information provided.
(D) The overall economy of a region is always improved by the presence of tech companies.
While the passage suggests positive effects on employment and local economies, it does not claim that the overall economy is always improved by the presence of tech companies. There could be other factors influencing the overall economy that are not addressed.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
The passage does not mention anything about the availability of skilled labor in economically depressed regions or the necessity of government incentives specifically to support skilled labor. This statement is not supported by the given information.
Based on the analysis, the statement that must be true according to the passage is:(C)
Regions with a higher density of tech companies tend to have lower unemployment rates.
The presence of tech companies stimulates local economies by creating a high demand for skilled labor.
This demand provides jobs within tech companies and boosts secondary employment in supporting industries.
The government is considering incentives to attract tech companies to economically depressed regions based on these findings.
Now, let's evaluate each option:
(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
The passage suggests that tech companies stimulate local economies and reduce unemployment, but it does not provide direct evidence that this effect will occur in all regions without a high density of tech companies. This statement is plausible but not necessarily true based on the information given.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
The passage implies that attracting tech companies to an area with incentives would likely stimulate the local economy and create jobs, suggesting that unemployment rates would decrease. However, it does not guarantee that the decrease will be significant, only that tech companies tend to reduce unemployment where they are present.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
This statement aligns directly with the passage's explanation that tech companies create a high demand for skilled labor and boost secondary employment. It is a logical conclusion based on the information provided.
(D) The overall economy of a region is always improved by the presence of tech companies.
While the passage suggests positive effects on employment and local economies, it does not claim that the overall economy is always improved by the presence of tech companies. There could be other factors influencing the overall economy that are not addressed.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
The passage does not mention anything about the availability of skilled labor in economically depressed regions or the necessity of government incentives specifically to support skilled labor. This statement is not supported by the given information.
Based on the analysis, the statement that must be true according to the passage is:(C)
18 Jul 2024, 07:49
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(A) Regions without a high density of tech companies will benefit from similar economic stimulation if tech companies are introduced there.
The report suggests that tech companies stimulate local economies, but it does not directly claim that this will definitely occur in regions currently lacking such companies. While it is a reasonable inference, it is not something that must be true based on the information given.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
This statement extends the proposal to an outcome without direct evidence or guarantee. While it may be a desired effect, the report does not claim that this outcome is certain. Therefore, it is not something that must be true based on the provided information.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
This statement directly aligns with the report's reasoning that tech companies stimulate local economies by creating jobs within tech companies and in supporting industries due to the high demand for skilled labor. Thus, this is a necessary conclusion drawn from the given information.
(D) The overall economy of a region is always improved by the presence of tech companies.
The report suggests improvement in terms of unemployment rates but does not generalize to all aspects of the economy or guarantee universal improvement in every region. This statement is too broad and is not supported as a must-be-true conclusion.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
The report does not provide information about the availability of skilled labor in economically depressed regions or suggest that a lack of skilled labor is the reason for these regions' economic status. Therefore, this statement cannot be concluded as a necessary truth.
Ans C
The report suggests that tech companies stimulate local economies, but it does not directly claim that this will definitely occur in regions currently lacking such companies. While it is a reasonable inference, it is not something that must be true based on the information given.
(B) Incentives to attract tech companies to economically depressed regions will significantly lower the unemployment rates in those regions.
This statement extends the proposal to an outcome without direct evidence or guarantee. While it may be a desired effect, the report does not claim that this outcome is certain. Therefore, it is not something that must be true based on the provided information.
(C) Tech companies tend to create more jobs in regions where they are concentrated due to increased demand for skilled labor and supporting industries.
This statement directly aligns with the report's reasoning that tech companies stimulate local economies by creating jobs within tech companies and in supporting industries due to the high demand for skilled labor. Thus, this is a necessary conclusion drawn from the given information.
(D) The overall economy of a region is always improved by the presence of tech companies.
The report suggests improvement in terms of unemployment rates but does not generalize to all aspects of the economy or guarantee universal improvement in every region. This statement is too broad and is not supported as a must-be-true conclusion.
(E) Regions that are economically depressed lack the skilled labor necessary to support the influx of tech companies without government incentives.
The report does not provide information about the availability of skilled labor in economically depressed regions or suggest that a lack of skilled labor is the reason for these regions' economic status. Therefore, this statement cannot be concluded as a necessary truth.
Ans C
