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The revival of Kranland’s automobile industry is being pitched as a be

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The revival of Kranland’s automobile industry is being pitched as a be  [#permalink]

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New post Updated on: 02 Aug 2018, 04:47
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The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.

Which of the following best explains the reason for the doubt expressed by the economists?


A. The automobile industry does not create low-quality jobs.

B. Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.

C. The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.

D. To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.

E. Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share

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Originally posted by Cbirole on 02 Aug 2018, 04:40.
Last edited by Bunuel on 02 Aug 2018, 04:47, edited 1 time in total.
Edited the question.
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Re: The revival of Kranland’s automobile industry is being pitched as a be  [#permalink]

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New post 02 Aug 2018, 05:30
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Prethinking : The economists expressed a doubt that the number of jobs might not increase even if the automobile industry proves to be successful. May be for the automation industry to be successful it has to automate the jobs increasing productivity, in which case the number of jobs will not increase.

A. The automobile industry does not create low-quality jobs.

Even if the automobile industry doesn't create low-quality jobs, the number of high-quality it creates may increase, resulting in the overall increase of the number of jobs. This doesn't explain the reason for the doubt expressed INCORRECT

B. Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.

This option gives information about some other company and is unrelated to the doubts expresses by economists INCORRECT

C. The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.

The automobile industry may have several cycles of growth and recession but since it is expected to grow at this moment, it might create more number of jobs. This doesn't explain the doubts expresses by economists INCORRECT

D. To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.

This option is somewhat similar to the prethinking. For a automobile company to be successful, it has to increase productivity by keeping the number of workforce constant. This helps explain the doubts expresses by economists.

E. Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share

This compares Ranland's automobiles to its peers and say Ranland's may cut down their prices. This option doesn't specify anything about the workforce or the number of jobs. INCORRECT

Hence option D
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Re: The revival of Kranland’s automobile industry is being pitched as a be  [#permalink]

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New post 02 Aug 2018, 05:49
Cbirole wrote:
The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.

Which of the following best explains the reason for the doubt expressed by the economists?


A. The automobile industry does not create low-quality jobs.

B. Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.

C. The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.

D. To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.

E. Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share


We need to find a reason why manufacturing growth doesn't create new jobs.
A. Yes no low-quality jobs but there can be high-quality jobs
B.5% growth tells us nothing because this is in percents. Moreover B talks about other company.
C. So what? In cycle of growth company can require new labor force.
D. Bingo. Company requires the use of the same workforce hence no need to create new jobs.
E. Market share? So what? New jobs doesn't mean more market share
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The revival of Kranland’s automobile industry is being pitched as a be  [#permalink]

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New post 07 Aug 2018, 09:20
Cbirole wrote:
The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.

Which of the following best explains the reason for the doubt expressed by the economists?


A. The automobile industry does not create low-quality jobs.

B. Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.

C. The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.

D. To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.

E. Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share





Hint :

only talk about not increasing jobs.. everything else can be okay as per the eco-nomist.



hence, option "C"


hope it helps!!
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Re: The revival of Kranland’s automobile industry is being pitched as a be  [#permalink]

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New post 07 Aug 2018, 10:39
The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.

Which of the following best explains the reason for the doubt expressed by the economists?
Boil it down - However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.
Pre-thinking - What if most of the work in the automobile industry is done by machines(automation) ;
What if most of the parts in Kranland’s automobile industry are manufactured abroad and they are assembled in Kranland

A. The automobile industry does not create low-quality jobs. - Incorrect - it does not explain the situation

B. Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%. - Incorrect - okay the increase in the number of employees is at a lower rate than the growth in production but it is still an increase

C. The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession. - Incorrect - but as of now it is in growth cycle

D. To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production. - Correct - a more efficient manufacturing process and automation are necessary to be a global manufacturing industry

E. Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share - Irrelevant

Answer D
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Re: The revival of Kranland’s automobile industry is being pitched as a be &nbs [#permalink] 07 Aug 2018, 10:39
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