Hi Mark ... great explanation. But I could not get why B is correct. While going through the question, I did not think that there is any option that could actually weaken the pol's recommendation. I am writing my understanding. Please guide me if you see any flaw.
Premise 1 - 12 & 5 years ago, the pundra was weak (I guess extensive period means a good amount of time during the aforesaid 2 years).
Premise 2 - Other currencies were a lot higher.
Result of 2 premises - weak pundra made Darfir's products cheaper globally and hence exports of such products increased.
Conclusion (by pols) - govt shall make pundra weak again and exports will increase by the same magnitude.
Now, A strengthens. D strengthens, E is irrelevant because we have to weaken the conclusion rather than look for an alternative.
C talks about economy but we are concerned about exports.
Finally, B says that the production is at near-peak level now, while 12 & 5 yrs ago, it was well below peak.
Where I got it wrong....
So what. Even though the prod is at peak (say), it can still export abroad the already manufactured goods, instead of selling them in the country. And who says that the products are actually getting sold. Even though the optimum cap has been achieved, the option does not talk about sale. Probably the product might not be getting sold locally, or, even if it is, why cannot they export?
I thought this actually strengthened because more the production, more the exports. For eg. say the optimum cap is 10000. 12 yrs ago, it produced 5000, 5 yrs ago 6000. Now, in this year, the prod is 9500.
This means that while Darfir could export only 5000 or 6000 earlier, now it can export 9500. Hence, weak currency will definitely help. The country has more to export. Hence, strengthen.