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Neither a rising standard of living nor balanced trade, by

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

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New post 23 Apr 2017, 11:35
adkikani,
Quote:
I am confused between option A and B.
As per first statement in stimuli, i need both - rising standard of living and balanced trade to establish country's ability to compete. As per second sentence, if any one of these parameters decline it needs to be compensated by other. IMO, the OA should be B

As explained by Alexey1989x, the passage states that both a rising standard of living and balanced trade are required simultaneously to establish a country's ability to compete. If we only know that a country can balance its trade while its standard of living falls (choice B), we do not know whether it can balance its trade while its standard of living rises. Thus, we do not know if it can achieve both requirements simultaneously.
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New post 28 Jul 2017, 08:48
Neither a rising standard of living nor balanced trade, by itself, establishes a country's 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 country's standard of living.

The first line expresses two conditions for the country to compete in international marketplace. The last lines are only to confuse you so that you chose a wrong answer. The two conditions are rising standards of living with balanced trade.

If the facts stated in the passage above are true, a proper test of a country's 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
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New post 10 Aug 2017, 23:15
standard of living - The degree of wealth and material comfort available to a person or community.

If the SOL increases, people have more money, and more stock on hand. At this stage, if SOL becomes deficit, stocks go cheap or waste and cause a loss. Hence Balanced trade is important for increasing SOL.


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

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New post 06 Oct 2017, 02:03
adkikani wrote:
Hi Expert,
I am confused between option A and B.
As per first statement in stimuli, i need both - rising standard of living and balanced trade to establish country's ability to compete. As per second sentence, if any one of these parameters decline it needs to be compensated by other. IMO, the OA should be B



Can you specify the CR question type please...
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Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

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New post 06 Oct 2017, 04:12
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omkarmorde

This is an inference question in which we treat the facts given in argument as true and
derive what we can logically infer from it.

Let me know if this helps!
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Neither a rising standard of living nor balanced trade, by  [#permalink]

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New post 03 Jan 2018, 05:36
GMATNinja, I am unable to ascertain between choice A and choice E. From the logic presented in the argument, both the options seems good.

Can you please clarify my doubt here?

The only argument that I can figure is - The argument talks about balancing the trade but does not provide any information about keeping standard of living CONSTANT.

is the reasoning correct?
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Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

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New post 03 Jan 2018, 18:39
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RMD007 wrote:
GMATNinja, I am unable to ascertain between choice A and choice E. From the logic presented in the argument, both the options seems good.

Can you please clarify my doubt here?

The only argument that I can figure is - The argument talks about balancing the trade but does not provide any information about keeping standard of living CONSTANT.

is the reasoning correct?

RMD007, I think you've got it! The passage says that a country needs both 1) a rising standard of living and 2) balanced trade in order to compete in the international marketplace. If a country has a CONSTANT standard of living, then it does not have a RISING standard of living. A country with a CONSTANT standard of living would not meet the first criteria and thus would not be competitive.

That's why (E) should be eliminated, and (A) is the best choice. I hope that helps!
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Neither a rising standard of living nor balanced trade, by  [#permalink]

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New post 03 Apr 2018, 06:43
Neither a rising standard of living nor balanced trade, by itself, establishes a country's 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 country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's 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

Reading first sentence gives a very important information which is,
rising standard of living + balanced trade = establishes a country's ability to compete in the international marketplace.

Now I can infer that the standard of living should only go up not down. Hence, I can safely elimionate B and D.

Trade should be balanced and the deficits should not increase. Hence, I can eliminate C and E.

The winner is A, which clearly says that the trade should be balanced and SOL rises.
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Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

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New post 14 Jul 2018, 08:27
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Hi adkikani,

Even I picked B as the answer - but when I read through some of the explanations I realized why I was wrong. The choice between options A and B ,though obvious to people with a good eye, is very tricky . Lets break your query into two parts

WHY IS A THE ANSWER

If you read the first sentence of the questions you can simply decipher that both “a rising standard of living” and “balanced trade” establish a country ability to compete.

This is exactly what A states

WHY IS B NOT THE ANSWER

B just re-states a part of the question which is actually an explanation of how they the two elements can help a country stay competitive and NOT a must be condition for a country to stay competitive.

Think of a good grilled cheese sandwich - you need both good cheese and good bread to make a good grilled cheese, each of them separately cannot make a good grilled cheese. A good cheese can help enhance the taste of bread and a good bread can help enhance/balance the flavour of cheese. But in the end you need both good bread and good cheese to make a good grilled cheese sandwich. It does not mean that if a good bread can balance out the flavour of the cheese its a good grilled cheese, the cheese has to be good too.

Hope this made some sense - brb making a grilled cheese now.

GMATNinja just wanted to check if you think my understanding is correct?
Re: Neither a rising standard of living nor balanced trade, by &nbs [#permalink] 14 Jul 2018, 08:27

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