GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 16 Jan 2019, 00:11

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
• ### The winning strategy for a high GRE score

January 17, 2019

January 17, 2019

08:00 AM PST

09:00 AM PST

Learn the winning strategy for a high GRE score — what do people who reach a high score do differently? We're going to share insights, tips and strategies from data we've collected from over 50,000 students who used examPAL.
• ### Free GMAT Strategy Webinar

January 19, 2019

January 19, 2019

07:00 AM PST

09:00 AM PST

Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.

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

Author Message
TAGS:

### Hide Tags

GMAT Club Verbal Expert
Joined: 20 Nov 2016
Posts: 262
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

23 Apr 2017, 10:35
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.
_________________
Intern
Joined: 12 Mar 2017
Posts: 39
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

28 Jul 2017, 07:48
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
Intern
Joined: 03 Jan 2016
Posts: 22

### Show Tags

10 Aug 2017, 22:15
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.

+1 A
Intern
Joined: 29 Nov 2015
Posts: 5
Location: India
WE: Sales (Consumer Products)
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

06 Oct 2017, 01:03
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...
Study Buddy Forum Moderator
Joined: 04 Sep 2016
Posts: 1299
Location: India
WE: Engineering (Other)
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

06 Oct 2017, 03:12
2
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!
_________________

It's the journey that brings us happiness not the destination.

Senior Manager
Status: Countdown Begins...
Joined: 03 Jul 2016
Posts: 289
Location: India
Concentration: Technology, Strategy
Schools: IIMB
GMAT 1: 580 Q48 V22
GPA: 3.7
WE: Information Technology (Consulting)

### Show Tags

03 Jan 2018, 04:36
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?
GMAT Club Verbal Expert
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2212
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

03 Jan 2018, 17:39
1
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!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for \$29.99 | Time management on verbal

Manager
Joined: 15 Nov 2016
Posts: 144

### Show Tags

03 Apr 2018, 05:43
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.
Intern
Joined: 24 Oct 2015
Posts: 27
Location: India
Concentration: Strategy, General Management
WE: Information Technology (Consulting)
Re: Neither a rising standard of living nor balanced trade, by  [#permalink]

### Show Tags

14 Jul 2018, 07:27
1
1

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

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, 07:27

Go to page   Previous    1   2   [ 29 posts ]

Display posts from previous: Sort by