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# Neither a rising standard of living nor balanced trade, by

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Director
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Neither a rising standard of living nor balanced trade, by [#permalink]

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11 Jun 2008, 21:23
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Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a countrys standard of living.

If the facts stated in the passage above are true, a proper test of a countrys ability to be competitive is its ability to

(A) balance its trade while its standard of living rises

(B) balance its trade while its standard of living falls

(C) increase trade deficits while its standard of living rises

(D) decrease trade deficits while its standard of living falls

(E) keep its standard of living constant while trade deficits rise

this was between A&E for me. Please explain your choice and reasoning.
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Director
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Re: CR:270/1000 [#permalink]

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11 Jun 2008, 21:46
I go with A on second look.
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Re: CR:270/1000 [#permalink]

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11 Jun 2008, 21:47
A

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Director
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Re: CR:270/1000 [#permalink]

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11 Jun 2008, 21:47
Should be A.

As passage says in trade deficit increases then standard of living increases. So E (which says standard of living remain constant is not true).

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SVP
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Re: CR:270/1000 [#permalink]

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11 Jun 2008, 21:52
I think this reference may help you not confuse between A and E

Fact: A or B ---> Not C

Correct Inference: C ---> Both A and B
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Re: CR:270/1000 [#permalink]

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11 Jun 2008, 23:23
A is the only plausible option here
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Manager
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Re: CR:270/1000 [#permalink]

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12 Jun 2008, 06:32
Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a countrys standard of living.

If the facts stated in the passage above are true, a proper test of a countrys ability to be competitive is its ability to

(A) balance its trade while its standard of living rises
Correct..Country should see both rise in standard of living and trade
(B) balance its trade while its standard of living falls
for country to be compititive enough standard of living should not fall
(C) increase trade deficits while its standard of living rises
for country to be compititive enough trade deficit should not rise
(D) decrease trade deficits while its standard of living falls
for country to be compititive enough standard of living should not fall
(E) keep its standard of living constant while trade deficits rise
for country to be compititive enough standard of living should be rising

IMO A is the answer.

what is OA

Chandra

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Re: CR:270/1000 [#permalink]

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12 Jun 2008, 06:34
should be A..!!!

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Manager
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Re: CR:270/1000 [#permalink]

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12 Jun 2008, 17:43
I think it's A here

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Manager
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Re: CR:270/1000 [#permalink]

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13 Jun 2008, 02:13
what about B ?

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Director
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Re: CR:270/1000 [#permalink]

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13 Jun 2008, 02:21
OA is A
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Re: CR:270/1000   [#permalink] 13 Jun 2008, 02:21
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# Neither a rising standard of living nor balanced trade, by

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