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# In 1983 Argonia’s currency, the argon, underwent a reduction in value

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In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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Updated on: 21 Oct 2017, 23:49
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In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the world’s strongest currencies. This reduction resulted in a significant increase in Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the argon led to another increase in Argonia’s exports. Faced with the need to increase exports yet again, Argonia’s finance minister has proposed another reduction in the value of the argon.

Which of the following, if true, most strongly supports the prediction that the finance minister’s plan will not result in a significant increase in Argonia’s exports next year?

(A) The value of the argon rose sharply last year against the world’s strongest currencies.

(B) In 1988 the argon lost a small amount of its value, and Aronian exports rose slightly in 1989.

(C) The value of Argonia’s exports was lower last year than it was the year before.

(D) All of Argonia’s export products are made by factories that were operating at full capacity last year, and new factories would take years to build.

(E) Reductions in the value of the argon have almost always led to significant reductions in the amount of goods and services that Argonians purchase from abroad.

Originally posted by rohansherry on 14 Aug 2009, 15:04.
Last edited by hazelnut on 21 Oct 2017, 23:49, edited 1 time in total.
Edited the question.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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14 Aug 2009, 15:12
rohansherry wrote:
14
In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the
world’s strongest currencies. This reduction resulted in a significant increase in
Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the
argon led to another increase in Argonia’s exports. Faced with the need to increase
exports yet again, Argonia’s finance minister has proposed another reduction in the
value of the argon.
Which of the following, if true, most strongly supports the prediction that the finance
minister’s plan will not result in a significant increase in Argonia’s exports next year?
A. The value of the argon rose sharply last year against the world’s strongest
currencies.
B. In 1988 the argon lost a small amount of its value, and Aronian exports rose
slightly in 1989.
C. The value of Argonia’s exports was lower last year than it was the year before.
D. All of Argonia’s export products are made by factories that were operating at
full capacity last year, and new factories would take years to build.
E. Reductions in the value of the argon have almost always led to significant
reductions in the amount of goods and services that Argonians purchase from

questions ask us to prove that finance minister prediction is wrong - we need to weaken his proposal
A - Doesnt make sense wrt to the question.
B - It make the prediction stonger
C - No connection with the question
D - Right answer - even if the argon value is reduced, the factories are at full capacity and would take years to be built and hence ministers prediction of exports increase will not be true.
E - Doesnt make sense - we dont talk about how much is imported, its about export here
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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15 Aug 2009, 04:08
agree with gmanjesh. another vote for (d)
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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15 Aug 2009, 12:32
I think it's D because
this year,the value of export reached the maximum capacity therefore the country cannot produce more ain the next year unless they have a new factory;however, which cannot be built within next year.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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15 Aug 2009, 15:19
GMATpp wrote:
I think it's D because
this year,the value of export reached the maximum capacity therefore the country cannot produce more ain the next year unless they have a new factory;however, which cannot be built within next year.

So, how is this weaking ? I mean suppose they export 100 today and earning 100 dollars (1\$ =1Argon) and minister devalue the currency against dollar ( major currency) ( say 1\$ =2 Argon) , even though they still export same and earning 100 dollars , but now this means 200 argons i.e. exports is increased
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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15 Aug 2009, 21:39
I think its D...since there is no extra production to export more how will exports increase even after devaluation !
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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Updated on: 21 Oct 2017, 23:43
3
In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the world’s strongest currencies. This reduction resulted in a significant increase in Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the argon led to another increase in Argonia’s exports. Faced with the need to increase exports yet again, Argonia’s finance minister has proposed another reduction in the value of the argon.

Which of the following, if true, most strongly supports the prediction that the finance minister’s plan will not result in a significant increase in Argonia’s exports next year?

(A) The value of the argon rose sharply last year against the world’s strongest currencies.

(B) In 1988 the argon lost a small amount of its value, and Aronian exports rose slightly in 1989.

(C) The value of Argonia’s exports was lower last year than it was the year before.

(D) All of Argonia’s export products are made by factories that were operating at full capacity last year, and new factories would take years to build.

(E) Reductions in the value of the argon have almost always led to significant reductions in the amount of goods and services that Argonians purchase from abroad.

Originally posted by Acc3ss on 27 Oct 2009, 22:00.
Last edited by hazelnut on 21 Oct 2017, 23:43, edited 1 time in total.
Edited the question.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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27 Oct 2009, 22:40
1
1
Acc3ss wrote:
In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the
world’s strongest currencies. This reduction resulted in a significant increase in
Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the
argon led to another increase in Argonia’s exports. Faced with the need to increase
exports yet again, Argonia’s finance minister has proposed another reduction in the
value of the argon.
Which of the following, if true, most strongly supports the prediction that the finance
minister’s plan will not result in a significant increase in Argonia’s exports next year?

A. The value of the argon rose sharply last year against the world’s strongest
currencies.
B. In 1988 the argon lost a small amount of its value, and Aronian exports rose
slightly in 1989.
C. The value of Argonia’s exports was lower last year than it was the year before.
D. All of Argonia’s export products are made by factories that were operating at
full capacity last year, and new factories would take years to build.
E. Reductions in the value of the argon have almost always led to significant
reductions in the amount of goods and services that Argonians purchase from

OA

I think this is an easy question - but again, maybe that is because I am an economist

A. Doesn't tell us anything about whether a decline in the argon will boost exports.
B. Offers weak support for the reverse of the claim that we are asked to support.
C. We don't know the value of the argon in "last year and the year before".
E. Tells us that a reduction in argon leads to decreased imports => irrelevant.

D. If all exporting companies are working at full capacity now and it will take years to increase this capacity, it's impossible to immediately increase exports. Hence this is the answer.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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27 Oct 2009, 23:10
Very easy. I believe this is a sub-600 level Q.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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27 Oct 2009, 23:54
I dont understand how the answer is coming here.. may be I am so weak in the economy topics.. can anyone please explain this to me.. thanks..
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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28 Oct 2009, 01:41
andershv wrote:
Acc3ss wrote:
In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the
world’s strongest currencies. This reduction resulted in a significant increase in
Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the
argon led to another increase in Argonia’s exports. Faced with the need to increase
exports yet again, Argonia’s finance minister has proposed another reduction in the
value of the argon.
Which of the following, if true, most strongly supports the prediction that the finance
minister’s plan will not result in a significant increase in Argonia’s exports next year?

A. The value of the argon rose sharply last year against the world’s strongest
currencies.
B. In 1988 the argon lost a small amount of its value, and Aronian exports rose
slightly in 1989.
C. The value of Argonia’s exports was lower last year than it was the year before.
D. All of Argonia’s export products are made by factories that were operating at
full capacity last year, and new factories would take years to build.
E. Reductions in the value of the argon have almost always led to significant
reductions in the amount of goods and services that Argonians purchase from

OA

I think this is an easy question - but again, maybe that is because I am an economist

A. Doesn't tell us anything about whether a decline in the argon will boost exports.
B. Offers weak support for the reverse of the claim that we are asked to support.
C. We don't know the value of the argon in "last year and the year before".
E. Tells us that a reduction in argon leads to decreased imports => irrelevant.

D. If all exporting companies are working at full capacity now and it will take years to increase this capacity, it's impossible to immediately increase exports. Hence this is the answer.

This certainly isn't a sub 600 question .. You explanation seems fine but we are provided data only till 1987. The need for another increase in export may be next year or may be after 100 years .. in that duration .. more factories may or may not have been built.. and thus the present industries may or may not be able to supply the increased exports ..

I hope ^^ makes sense ..

I guess a bit more elaborate explantion will do ..
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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28 Oct 2009, 02:20
2
Acc3ss wrote:
andershv wrote:
Acc3ss wrote:
In 1983 Argonia’s currency, the argon, underwent a reduction in value relative to the
world’s strongest currencies. This reduction resulted in a significant increase in
Argonia’s exports over 1982 levels. In 1987 a similar reduction in the value of the
argon led to another increase in Argonia’s exports. Faced with the need to increase
exports yet again, Argonia’s finance minister has proposed another reduction in the
value of the argon.
Which of the following, if true, most strongly supports the prediction that the finance
minister’s plan will not result in a significant increase in Argonia’s exports next year?

A. The value of the argon rose sharply last year against the world’s strongest
currencies.
B. In 1988 the argon lost a small amount of its value, and Aronian exports rose
slightly in 1989.
C. The value of Argonia’s exports was lower last year than it was the year before.
D. All of Argonia’s export products are made by factories that were operating at
full capacity last year, and new factories would take years to build.
E. Reductions in the value of the argon have almost always led to significant
reductions in the amount of goods and services that Argonians purchase from

OA

I think this is an easy question - but again, maybe that is because I am an economist

A. Doesn't tell us anything about whether a decline in the argon will boost exports.
B. Offers weak support for the reverse of the claim that we are asked to support.
C. We don't know the value of the argon in "last year and the year before".
E. Tells us that a reduction in argon leads to decreased imports => irrelevant.

D. If all exporting companies are working at full capacity now and it will take years to increase this capacity, it's impossible to immediately increase exports. Hence this is the answer.

This certainly isn't a sub 600 question .. You explanation seems fine but we are provided data only till 1987. The need for another increase in export may be next year or may be after 100 years .. in that duration .. more factories may or may not have been built.. and thus the present industries may or may not be able to supply the increased exports ..

I hope ^^ makes sense ..

I guess a bit more elaborate explantion will do ..

I don't think that this is a sub-600 Q and I never stated so. I just said that I found it easy, which I should since I'm an economist.

Allow me to elaborate: In D we are told that the exporting factories are working at full capacity and it will take a couple of years to increase this capacity (by building new factories). This means that there is no way to increase exports in the forthcoming year. Since we are asked to find a claim which supports the notion that the finance ministers plan (to decrease the argon in order to boost exports) will not work, statement D fits the bill perfectly. Again, this is due to the fact that D states that there is no way to increase exports in the next year. Therefore the finance minister's plan will not increase exports.

I hope this helped. If not, please let me know.
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28 Oct 2009, 02:27
Ah .. i guess its more clear to me now .. thanks a ton. kudos +1 for you

PS: that "sub 600" was directed towards barakhaiev, although i didn't mentioned it there .. that might have caused the confusion.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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28 Oct 2009, 02:39
Acc3ss wrote:
Ah .. i guess its more clear to me now .. thanks a ton. kudos +1 for you

PS: that "sub 600" was directed towards barakhaiev, although i didn't mentioned it there .. that might have caused the confusion.

Ah ok, I missed that one. I'm glad that it helped!
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28 Oct 2009, 17:40
This looked like easy question, though because it was too easy I was almost tempted to ignore the correct answer.
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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13 Nov 2009, 11:59
Since Argonia’s factories are already operating at
full capacity, the country has reached its production limit (at least for now). The price won't cause an increase in exports at this stage.

Last year: 200 units of products, at 100 Argons per unit.
This year: 200 units of products, at 50 Argons per unit.

Only the price has changed. The quantity remains the same.
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07 Aug 2015, 08:03
Funny enough I first chose D but then rejected it for being unlikely, as there surely are other goods than those produced than can be exported or are in inventory. Well, sometimes it would be good to stick to the "if, true" part of the stem...
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Re: In 1983 Argonia’s currency, the argon, underwent a reduction in value  [#permalink]

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09 Jul 2016, 09:26
Acc3ss wrote:
Ah .. i guess its more clear to me now .. thanks a ton. kudos +1 for you

PS: that "sub 600" was directed towards barakhaiev, although i didn't mentioned it there .. that might have caused the confusion.

I will give you a hand if you let me:

Only choice D makes it because, even if the government makes a decision about what it needs to make the economy grow, the capacity to produce new goods is a limiting factor to the economy to achieve its goal.
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21 Oct 2017, 23:48
https://gmatclub.com/forum/14-in-1983-a ... fl=similar
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# In 1983 Argonia’s currency, the argon, underwent a reduction in value

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