Policy analyst: CAFTA the Central American Free Trade

Question

Policy analyst:  CAFTA—the Central American Free Trade Agreement—is a good thing . If we enact CAFTA, we essentially drop trade barriers between the US and a host of Central American companies; that means lower production costs for American companies, lower retail prices for American consumers, and more income from exports for the US. These are undeniably good things. But all good things in economic policy come at a price. The price of CAFTA’s benefits is the outsourcing of American jobs.  For prices to drop and companies to make more money, overhead costs must be slashed . CAFTA lets companies send all their manufacturing jobs to Central America, where workers make a fraction of what American workers make and where factories are poorly regulated and thus cheap to operate. In the end, the savings of the average American at the store will not compensate for the loss of income from outsourcing.

The boldface portion of the analyst’s argument serve what function?

(A) The first offers the analyst’s conclusion; the second gives a consideration that counts against that conclusion.
(B) The first presents a reason in favor of the analyst’s conclusion; the second is that conclusion.
(C) The first gives a reason that counts against the analyst’s conclusion; the second gives a reason that the analyst thinks supports the first reason.
(D) The first is a factor that weighs against the analyst’s conclusion; the second presents an explanation of why this consideration should be disregarded.
(E) The first is the analyst’s conclusion; the second presents a consequence of that conclusion.

LAKSH0328 · Answer

IMO D.

The conclusion of the analyst is the statement "End the end.. ". So, A and E are gone. 1st bold statement is opposite to the conclusion. so B is also gone. Now 1st and 2ns statement state 2 opposite things , so C is also gone. that leaves D.

ConkergMat · Answer

Clear D. 2:45 though...yikes...

ritula · Answer

D. For the first time, I cld ans a bold face problem with confidence. These BF problems really terrorise me

. Can sum1 help?

unplugged · Answer

Agree with D

Cheers,
Unplugged

bigfernhead · Answer

Not sure if it's that clear to me.

Between A) and E), I went with A.

IF the first bold is  NOT  the conclusion, then what is?

In the end, the savings of the average American at the store will not compensate for the loss of income from outsourcing.

I believe this is a premise.

chicagocubsrule · Answer

I was also debating between A & E, and chose A simply because it fit a little better.

icandy · Answer

I agree this Q was very confusing.The opening statement makes it appear as if it were the conclusion.

But D has a pretty strong case. If we arrange all the events in chronological/logical order, what is the last word on this whole thing?

Is CAFTA a good thing the last word (or) If we adopt CAFTA for its good reasons, there are dire consequences

Logically it seems to be the later. How can the Policy expert still conclude that CAFTA is a good thing despite the huge loss in income unless there is an evidence that favors less prices to lower incomes. There is not.

Hence I believe it is D.

A was the trap and I fell for it to start with.

gurpreet07 · Answer

I am still confused b/w A and E.......
Though D make sense but i doubt thats it's the OA.

Can someone throw some more light on it.....

JohnLewis1980 · Answer

Hi mates,

IMO  D

The conc. is that the savings of the average American at the store will not compensate for the loss of income from outsourcing. And Oursourcing comes from CAFTA. Therefore, saying that the CAFTA is good goes againts the conc. and the second part explains why outsourcing should be disregarded.

OA and Source?

Cheers

grumpyoldman · Answer

Where does this question come from? I can't find a correct answer.

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Policy analyst: CAFTA the Central American Free Trade

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