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Difficulty:
65%
(hard)
Question Stats:
53% (01:53) correct
47%
(01:48)
wrong
based on 660
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An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.
Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
(E) Country A's economy will become the most dominant in the automobile sector globally.
Question updated at 19:00 on July 16 as the difference between 2 answer choices was too subtle
|
16 Jul 2024, 08:00
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GMAT Club Official Explanation:
Correct Answer: B. If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement.
(B) connects the conditions laid out: innovation leads to competitiveness, and competitiveness under a free trade agreement leads to benefits. Hence, if innovation continues, then the benefits from the free trade agreement will follow because competitiveness is maintained as a result of innovation.
(A) If the automobile industry in Country A does not receive sufficient investment, it will not continue to innovate.
(A) We only know that sufficient investment guarantees innovation but we dont know if insuffient investment guarantees no innovation. It still may, but we only know that it will as long as long as it receives sufficient investment. Eliminate.
(C) If there is a global recession, the automobile industry in Country A will cease to innovate.
(C) introduces an external factor (global recession) that is not covered by the economist’s assertions. There is no direct connection between a recession and innovation. Perhaps during the recession there will be less investment but maybe there will be even more - we do not know and we cannot assume anything else. This statement is insufficient by itself and irrelevant. Eliminate.
(D) The automobile industry in Country A will receive sufficient investment indefinitely.
This answer choice makes a prediction that is not based on any of the stated facts. We do not know or have any reason to believe that investments will continue in the future. Eliminate
(E) Country A's economy will become the most dominant in the automobile sector globally.
This choice goes way beyond the provided facts. There are many condidtions that have to happen for this to be true and we do not have any evidence that it will indeed happen. Eliminate
General Discussion
16 Jul 2024, 07:25
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An economist asserts that a free trade agreement will benefit Country A's automobile industry as long as the industry remains competitive globally; that the industry will remain competitive as long as it continues to innovate; and that it will continue to innovate as long as it receives sufficient investment.
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally. This is the answer
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. Free trade agreement will help country get an advantage not vice versa hence rejected
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. -Cease is a very strong word hence rejected.
(D) The automobile industry in Country A will receive sufficient investment indefinitely._Nothing of this sort is mentioned in the given para, hence rejected.
(E) Country A's economy will become the most dominant in the automobile sector globally.- It is too extreme, hence OOS.
Posted from my mobile device
If the assertions above are correct, which of the following further predictions can logically be derived from them?
(A) If the automobile industry in Country A receives sufficient investment, it will remain competitive globally. This is the answer
(B) If the automobile industry in Country A continues to innovate, it will benefit from the free trade agreement. Free trade agreement will help country get an advantage not vice versa hence rejected
(C) If there is a global recession, the automobile industry in Country A will cease to innovate. -Cease is a very strong word hence rejected.
(D) The automobile industry in Country A will receive sufficient investment indefinitely._Nothing of this sort is mentioned in the given para, hence rejected.
(E) Country A's economy will become the most dominant in the automobile sector globally.- It is too extreme, hence OOS.
Posted from my mobile device
