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tejal777
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rkassal
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angel2009
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getmba
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One more B.

Local economy is also boosted but relatively much smaller as compared to economic activity that goes on in mall. Choice B clearly mentions it.
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tejal777
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IMO it was B too!

OA: :shock:

Somebody please explain the reasoning..
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boeinz
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Please attach the file 'inline'. Many thanks.
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tejal777
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My querie is for question 17 which is clearly visible :)
Now,explanations anyone?
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mrbgam
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It's too hard!
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kodeprasad
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Here is how i looked at the problem!

The fight is clearly between option B and D.

Stimulus :
construction of many shopping malls who have increased economic activity.

Still the increase in the local economy is much smaller than expected due to construction of shopping malls.

look at option B:

It says most of the money spent in the malls is by tourist.

But this statement doesn't remove the discrepancy the question. i.e. it is not important who spends money. the important thing is money is spent in shopping malls and still there is enough increase in local economy!

So ,Imo, the option B in fact increases the proposed Discrepancy!! and so Out!


Look at option D:

It says , most of the money would have been spent somewhere in the same community if shopping malls had not been built!

So, this gives us clue that , money spent somewhere in the same community would have increased economic activity in the economy not just in shopping malls.

So, option D definitely solves the discrepancy in the stimulus i.e. Although there is increase in the economic activity in the shopping malls , there is much smaller increase in economic activity in the same community!

Hope this Helps!!!
Phewww...
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GMAT TIGER
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tejal777
My querie is for question 17 which is clearly visible :)
Now,explanations anyone?

Its clear D.

To increase the economic activities, money has to come into the community from outside. If the money spent at the mall is from the community where the mall is built, then the large amount of economic activity at the mall doesnot increase the economic activities of the community.

D is exactly the same. Therefore, economic activities has not increased in the community where the mall is built...

B is not the same. In B, the money from out of the community has come as the the outside tourist spent money at the mall...
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i picked D too, but it implies that the total amount will remain the same irrespective of where it is (in the mall or other places) the net amount remains the same , hence there is no increase indicated. the last statement of the argument says the increase (i put a % for my understanding) is < total amount - why is that? B answers that.
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AGree with kodeprasad.
It doesnt matter who spends the money in the mall, whether its tourists or locals, the money is still going into the community's economy. In spite of that, there isnt much of an increase in the overall economy .. [D] answers the paradox that since money that would have been spent elsewhere in the community is now being spent in the mall so net gain to the community is negligible.
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Right, it's D. People expect a large economic boost, but the benefits are actually quite small. Yet the shopping center enjoys a great deal of business.

Economic activity, once dispersed throughout the entire community, is now simply concentrated at the mall. In other words, new wealth wasn't created - it only shifted to the mall.

Hope this helps!



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