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The cost of manufacturing microchips in Country K is 15 percent greate

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The cost of manufacturing microchips in Country K is 15 percent greate  [#permalink]

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New post 22 Apr 2017, 06:24
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Question Stats:

89% (01:29) correct 11% (01:40) wrong based on 119 sessions

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The cost of manufacturing microchips in Country K is 15 percent greater than the cost of manufacturing the same microchips in Country P. Even after customs taxes and delivery fees are considered, it is still cheaper for Country K to import microchips from Country P than to have the microchips manufactured domestically.

The claims above, if true, most strongly support which of the following conclusions?

(A) Customs taxes are less in Country K than they are in Country P.
(B) It takes 15 percent more time to manufacture a microchip in Country K than it does in Country P.
(C) The taxes and fees associated with importing microchips from Country P to Country K are less than 15 percent of the cost of manufacturing those microchips in Country K.
(D) Importing microchips from Country P will reduce employment opportunities in manufacturing by 15 percent in Country K.
(E) Manufacturing costs are the primary consideration for countries when considering whether to import foreign goods.

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Re: The cost of manufacturing microchips in Country K is 15 percent greate  [#permalink]

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New post 25 Apr 2017, 08:05
Question Type: Inference

We must find an answer option that is true based on the given information.

(A) Customs taxes are less in Country K than they are in Country P. - Incorrect. Out of scope.

(B) It takes 15 percent more time to manufacture a microchip in Country K than it does in Country P. - Incorrect. Out of scope.

(C) The taxes and fees associated with importing microchips from Country P to Country K are less than 15 percent of the cost of manufacturing those microchips in Country K. - Correct. Manufacturing cost is 15% greater in K. So if import of microchips has to be cheaper, the import duty and and delivery fee must be less than 15% of the manufacturing cost in K.

(D) Importing microchips from Country P will reduce employment opportunities in manufacturing by 15 percent in Country K. - Incorrect. Out of scope.

(E) Manufacturing costs are the primary consideration for countries when considering whether to import foreign goods. - Incorrect. This is not the sole consideration. The argument considers other factors such as customs and delivery fee and doesn't prioritize one over the other.

Answer: C
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The cost of manufacturing microchips in Country K is 15 percent greate  [#permalink]

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New post 12 May 2017, 06:31
(A) Customs taxes are less in Country K than they are in Country P. Out of scope.

(B) It takes 15 percent more time to manufacture a microchip in Country K than it does in Country P. Out of scope.

(C) The taxes and fees associated with importing microchips from Country P to Country K are less than 15 percent of the cost of manufacturing those microchips in Country K. - Correct. Manufacturing cost is 15% greater in K. So if import of microchips has to be cheaper, the import duty and and delivery fee must be less than 15% of the manufacturing cost in K.

(D) Importing microchips from Country P will reduce employment opportunities in manufacturing by 15 percent in Country K. - Out of scope.

(E) Manufacturing costs are the primary consideration for countries when considering whether to import foreign goods. - Incorrect. This is not the sole consideration. Moreover avoid strong words like Primary.

Answer: C

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The cost of manufacturing microchips in Country K is 15 percent greate &nbs [#permalink] 12 May 2017, 06:31
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