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Math Expert
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Re: In order to maintain a high standard of living, a nation must maintain [#permalink]
Flaw: Argument assumes that Standard of living can ONLY be improved through investment in infra.
Approach: Find an option that provides other factors that can promote SOL.

A. Incorrect. Standard of living (SOL) might not decline. But it can also experience a stagnation or no-rise situation. Doesn't address the flaw.
B. Out of scope. A nation's capability has nowhere been discussed in the passage. External information.
C. Incorrect. The rise in standard of living might takes ages. Time period is not in scope of the passage.
D. Correct. This addresses the flaw. the argument assumed that rise in SOL can only take place if investment in infra is made. This option clearly states that there can be other factors as well to promote SOL.
E. Out of scope. Fund diversion and management is not in scope of the argument.

IMO D.
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Re: In order to maintain a high standard of living, a nation must maintain [#permalink]
In order to maintain a high standard of living, a nation must maintain a functioning infrastructure. Major investment in the improvement of its infrastructure will, over time, reward a nation with a corresponding rise in its standard of living. Hence a nation whose standard of living is on the rise can be safely assumed to be a nation that has invested heavily in improving its infrastructure.

The reasoning in the argument is flawed because the argument fails to take into account that

(A) a nation that fails to invest in its infrastructure need not experience any resulting decline in its standard of living - WRONG. A decline in SOL is not discussed and its also not possible to prove so.
(B) many nations are unable to make the needed investments in infrastructure - WRONG. However, MANY would be.
(C) the rise in a nation’s standard of living that is prompted by investment in its infrastructure may take a long time to occur - WRONG. It was already mentioned.
(D) a rise in a nation’s standard of living need not be the result of major investments in its infrastructure - CORRECT. Other side of possibility seems to have been ignore or atleast not discussed.
(E) nations often experience short-term crises that require that resources be diverted to purposes other than the maintenance and improvement of infrastructure - WRONG. Short-term crises is irrelevant.

Answer D.
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Re: In order to maintain a high standard of living, a nation must maintain [#permalink]
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