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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 07 Nov 2016, 20:52
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goalsnr wrote:
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

Please explain your answers


Decoding the argument
"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"[conclusion (rule)]
"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." [Premise-supporting the concl]

The question stems asks us to test the country's ability based on the rule mentioned. "A" makes it clear that both are required.

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

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New post 03 Mar 2017, 17:23
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
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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, 10:35
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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Re: Neither a rising standard of living nor balanced trade, by [#permalink]

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New post 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

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

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New post 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

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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, 01:03
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] 06 Oct 2017, 01:03

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