GMATPrep CRs

Question

Please xplain your answers for everyone's benefit.

ak_idc · Answer

1. D

D because all the competitors have stable currencies. Then why should this particular country devalue its currency?

the word "Doubt" in the question stem made me to chose D

E seems close. But the argument does nt say much abt ills of weak currency. Strong currency is not shown as a desirable thing.

2. E

If we know what would be the behavior of capuchins when they find other insects that repel mosquitos, we can evaluate the argument better.

jerrywu · Answer

1.B 

since Darfir's production is reaching peak , the deprecation cannot increase any further sales revenue.

2.D

uvs_mba · Answer

I second that :-D

For the monkey explaination, the passage says that the mosquitos are at their peak during the rainy season, and the chemical mill... helps protect against mosquitos and therefor the monkeys must be rubbing it... And the rubbing behavior only happens during the rainy season, so you want to ask that if the millipedes are only available dring the rainy season.

ivymba · Answer

B 
The country won't be able to meet the increased demand for goods if its factories are already operating at a peak. Hence no increase in revenue from exports.

D

diegmat · Answer

Was struggling with #1 - but great explanation ak_idc...

Viperace · Answer

1. C


2. E
If we found some other insects that have similar chemical, that sort of disprove the claim. There could be another reason why the Monkey choose the milipede but not 'other insects'

baski6 · Answer

1 B

2 D

ak_idc · Answer

Mahesh, OA please?

quangviet512 · Answer

In my opinion ans for the first one must be E
Because this country's products can compete well with other countries' products means that it already get a big market share. If it devaluates its currency, this will not result in a significant increase in export but many other difficulties due to weak domestic currency.

londonluddite · Answer

B & D

B - unlikely to be able to increase manufactured exports if manufacturing already at peak. 

D - if the millepedes are only available during the rainy season this would discredit the fact that they use them conciously to avoid mosquito bites.

londonluddite · Answer

IMO D is not an option for 1. A stable currency is almost always a strong one, if you devalue you $ vs your competitors, your products will be more competitive, in exactly the same way China and Japan deliberately peg their currencies at what most people consider an undervalued level.

Lets say the UK and US have an oligopoly on manufactured widgets, the primary consumer of these widgets is China. Lets also say that 1$ = 1GBP = 1 yuan. If the UK devalues its currency so that 2GBP = 1$ = 1 yuan then China can now afford to buy 2 UK widgets for every US one, therefore one could assume that the UK exports are going to increase.

londonluddite · Answer

Could also discredit E on the 1st question. What if the plants are already 100% efficient? Yes increasing them to 200% efficiency might make them more competitive, but this would be impossible. I think WOULD is the key here; kind of like all, every, any its just a bit of a extreme word.

If GM could manufacture cars for 1$ it would make them more competitive. But it aint gonna happen :shock:

mahesh004 · Answer

OA is B and D

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