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# Industrialists from the country Distopia were accused of

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Director
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Industrialists from the country Distopia were accused of [#permalink]

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25 Mar 2005, 21:49
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Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists' facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia's federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists' facilities in Arcadia totaled only four billion dollars.

Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?

A. During the Aracdian war, many Distopian industrialists with faciliteis located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
B. The largest proportion of Distopia's federal expenses is borne by those who receive no significant industrial profits.
C. Most Distopian industrialists' faciliteis located in Arcadia are expected to maintain the level of profits they achieved during the war.
D. Distopian industrialists' facilities in Arcadia made substantial profits before the events that triggered the civil war.
E. Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.

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Director
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25 Mar 2005, 22:48
"during the war, profits from the Distopian industrialists' facilities in Arcadia totaled only four billion dollars."

If we can prove that Distopians had more at stake, this can weaken the argument.
C) does exactly this - Distopian industries in Arcadia are expected to continue to make money after war, so they have lot at stake.

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Intern
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26 Mar 2005, 05:21
At the first glance C seemed ok to me. First sentence says: Distopians merely wanted to insure "that the industrialists' facilities in Arcadia made substantial profits during the war". I think, the argument states: substantial profits during the war is not Distopia's motive. And C only strengthens the argument, saying that profits after the war are a reason Distopia intervented in the civil war.
But may be, the thing is that profits after the war are impossible without substantial profits during the war?
Is C the OA?

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Senior Manager
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03 Apr 2005, 13:44
B makes sense to me. If the costs went to industrialists who didn't reap the benefits, then the industrialists who reaped the benefits actually came out with a great margin.

While c makes sense, I think it's irrelevent in this case. We're not discussing the postwar period in the question stem, hence we should leave it out.

what's the OA?

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Manager
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03 Apr 2005, 14:34
B.

The argument is flawed.

Cost of intervention to the Govt. = \$8B
Cost of intervention to the industrialists = a fraction of \$8B in taxes
Net Profit to the industrialists = \$4B - fraction of \$8B paid in taxes.

The argument ignores the possibility that the industrialists pay only a small fraction of \$8B in taxes.
_________________

Anyone who has never made a mistake has never tried anything new. -Albert Einstein.

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Senior Manager
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Re: CR - Industrialists from Distopia [#permalink]

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03 Apr 2005, 15:36
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists' facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia's federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists' facilities in Arcadia totaled only four billion dollars.

Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?

B. The largest proportion of Distopia's federal expenses is borne by those who receive no significant industrial profits.
C. Most Distopian industrialists' faciliteis located in Arcadia are expected to maintain the level of profits they achieved during the war.

I will choose B.

C is out of scope because the stem focus on the profits during the war, not after the war.

plus, we are comparing expense and profits right here. Mckenna gave a good analysis why B is right.

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VP
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Re: CR - Industrialists from Distopia [#permalink]

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03 Apr 2005, 20:03
Industrialists from the country Distopia were accused of promoting the Distopian intervention in the Arcadian civil war merely to insure that the industrialists' facilities in Arcadia made substantial profits during the war. Yet this cannot be the motive since, as the Distopians foresaw, Distopia's federal expenses for the intervention were eight billion dollars, whereas, during the war, profits from the Distopian industrialists' facilities in Arcadia totaled only four billion dollars.

Which of the following, if true, exposes a serious flaw in the argument made in the second sentence above?

A. During the Aracdian war, many Distopian industrialists with faciliteis located in Arcadia experienced a significant rise in productivity in their facilities located in Distopia.
We talked about facilities located in Arcadia.

B. The largest proportion of Distopia's federal expenses is borne by those who receive no significant industrial profits.
We don't care about which is the largest. Those who receive no significant industrial profits wouldn't interven in the civil war.

C. Most Distopian industrialists' faciliteis located in Arcadia are expected to maintain the level of profits they achieved during the war.
This is my pick, because industrialists have expection, they interven in the Arcadian civil war.
D. Distopian industrialists' facilities in Arcadia made substantial profits before the events that triggered the civil war.
we talked about during the civil war
E. Many Distopians expressed concern over the suffering that Arcadians underwent during the civil war.
clearly wrong.

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Director
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04 Apr 2005, 03:13
OA is B

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GMAT Club Legend
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04 Apr 2005, 22:03
Shd be B. If a large proprotion of the expenses are not borned by these industrialists, then it's right to say they profited from the war

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Senior Manager
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05 Apr 2005, 11:29
that's a situation similar to that of profit sharing.
I was told by my professor that when a manager shares 5% of a company's profits, and he is willing to buy a corporate car, he loses a small part of his earnings at the expense of the shareholders.
In this case, the manager is represented by industrialists and the company by the society.

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05 Apr 2005, 11:29
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# Industrialists from the country Distopia were accused of

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