Source is 1000 CR doc. The Commerce Department recently put : GMAT Critical Reasoning (CR)
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# Source is 1000 CR doc. The Commerce Department recently put

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Source is 1000 CR doc. The Commerce Department recently put [#permalink]

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14 Aug 2006, 01:02
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Source is 1000 CR doc.

The Commerce Department recently put limits on machine-tool imports from two countries whose exports of machine tools into the United States have been substantial. As a result of these restrictions, analysts predict that domestic sales of machine tools manufactured in the United States are bound to rise considerably, starting in the very near future.
Which of the following, if true, would be most likely to cause the analystsâ€™ prediction to be inaccurate?
(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.
(B) United States companiesâ€™ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.
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14 Aug 2006, 01:48
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22
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14 Aug 2006, 04:00
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22

Can you tell me , why A) is incorrect..
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14 Aug 2006, 09:45
shinewine wrote:
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22

Can you tell me , why A) is incorrect..

D for me as well.

While the successful passage of the act may affect the machine tool industry, there's no certainty around it. D attacks the argument more closely. Besides it offers no insights into HOW will the investments be discouraged? Would the discouragement actually work .. because of these reasons the choice is only partially weakening the argument.

I am not 100% sure but I believe more than one choice in CR could be correct. You need to pick up the one that's the MOST relevant.

MATT could you offer some more insights or correct me if I am wrong. Would appreciate it...
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14 Aug 2006, 10:52
A is wrong because its says "would discourage investment in capital equipment" means it might or its possible in future but we cannot be certain about it.

D provides a more concrete reason that since US already has stockpiles of foreign tools the its will not be affected by the newly imposed limit.

Hence D
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14 Aug 2006, 11:17
A is wrong because it is more probabilistic than D...

D is convincing...since the inventories are already available it defeats the purpose...and hence the prediction.
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14 Aug 2006, 12:17
D for me too.

Apart for reasons given above, A is thinking too far.
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14 Aug 2006, 19:08
dwivedys wrote:
shinewine wrote:
GMATT73 wrote:
Clearly (D) here. If the cheaper foreign stockpiled inventories remain, then it will take some time before the domestic tool sales increase.

2:22

Can you tell me , why A) is incorrect..

D for me as well.

While the successful passage of the act may affect the machine tool industry, there's no certainty around it. D attacks the argument more closely. Besides it offers no insights into HOW will the investments be discouraged? Would the discouragement actually work .. because of these reasons the choice is only partially weakening the argument.

I am not 100% sure but I believe more than one choice in CR could be correct. You need to pick up the one that's the MOST relevant.

MATT could you offer some more insights or correct me if I am wrong. Would appreciate it...

Additionally, investment startegies in research (A) is out of scope/off topic. Not relevant to current or near future sales volume of tools.
14 Aug 2006, 19:08
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