adkikani wrote:
generis ammuseeru nightblade354 pikolo2510GMATNinja KarishmaB Can anyone explain (Book Question: 462)
Which of the following, if true, would most strengthen the author’s assertion regarding economic indicators in lines 25–27 ?
A. During an economic depression, European textile manufacturers’ profits rise while their industrial output remains steady.
B. During a national economic recession, United States microchips manufacturers’ profits rise sharply while United States steel manufacturers’ profits plunge.
C. During the years following a severe economic depression, textile manufacturers’ output levels and profit levels increase in Brazil and Mexico but not in the rest of Latin America.
D. Although Japanese industry as a whole recovers after an economic recession, it does not regain its previously high levels of production.
E. While European industrial output increases in the years following an economic depression, total output remains below that of Japan or the United States.
I failed to identify the main conclusion and supporting premise here.
I understood below:
Author seems to be disagreeing with historians that
- Great depression was was less severe in Latin America than in US
and did not significantly impede industrial growth there
Supporting premise used by author against historians - The premise used by historians ie economic statistics are neither accurate
nor reliable
Additional supporting premise used by author against historians - one cannot assume a direct correlation between
the output level and the profit level of a given
industry as these variables often move in opposite
directions
I could not proceed further.
What i understood is
As per historians, great depression was less severe in Latin America than USA and great depression didn't delay Industrial Growth in Latin America.
Historians used data from National government records and government-sponsored industrial censuses to claim their assertion.
National Government Records--> Tax revenues and Exports
Government-sponsored industrial censuses--> Total Manufacturing Output and Profit Levels.
But as per Author, Historians claim is not reliable and not consistent.
Author specifically points out that Historian claim is not valid for MANUFACTURING DATA.
Then Author says:
1. Manufacturing data may be distorted
2. CANNOT assume a direct correlation between the output level and the profit level of a given industry. These variables often move in opposite directions.
3. National and Regional Economies are consist of Individual firms and Industry. Economic Indicator, which is very wide, may hide substantial variation among DIFFERENT Firms/Enterprises.
Then Author gives example of textile manufacturing of Brazil and Mexico and says GD has more impact in Latin America than historians considered.
adkikani to your question, please note "DIFFERENT Enterprises" which author mentioned in 3rd point. Only option B considers two different firms i.e. USA microchips manufacturers’ and USA steel manufacturers profits’
Other options talk about one industry only. So option B is correct.