A wave of redundancies has led state governments to appeal to the fede

Question

A wave of redundancies has led state governments to appeal to the federal government for emergency funding to alleviate unemployment. Following publication of a report on the viability of garage enterprises, a consortium of banks and investment houses has proposed the establishment of an investment fund to provide capital for such enterprises. This has elicited a chorus of criticism from various quarters, who have pointed out that federal light industry programs aimed at assisting skilled but redundant workers by stimulating the growth of garage enterprises frequently end up harming other U.S. social groups unconnected to the enterprises.

Which of the following, if true, provides the most doubt for the critics’ claim above?

(A) Garage enterprises in the state now produce almost 12% of the vehicle components previously imported from Southeast Asia.
(B) The funding of the light industry program depends on the reallocation of resources earmarked for the refurbishment of run-down areas.
(C) Light industry programs have previously produced employment opportunities that last no longer than a decade at most.
(D) The viability report was commissioned and published by the Union for Light Indus- try Workers.
(E) Much of the proposed Investment derives from government and treasury invest- ment houses.

sayan640 · Answer

MartyMurray   KarishmaB  would you like to provide your explanation for this question ?

bo12345 · Answer

Question answer marked incorrectly. Manhattan Prep official answer is B.

Yosemite98 · Answer

It cannot be B, it must be A.

B supports the critics concern as:
 Suggests a  zero-sum  funding trade-off — taking money away from something else.
  Supports  the critics’ concern: some groups lose out (people in run-down areas).

(A) Garage enterprises in the state now produce almost 12% of the vehicle components previously imported from Southeast Asia.
 
 This shows success and economic contribution by garage enterprises. 
 If they're reducing reliance on imports, that may benefit the broader economy — including social groups not directly involved. 
 This challenges the idea that these programs harm others.

bo12345 · Answer

But it is, you can copy paste the question to google to see the official explanation by manhattan prep.

Bunuel · Answer

1. This question is from Manhattan  Review , not Manhattan  GMAT  (now Manhattan Prep). The latter is significantly higher in quality. Tag removed.
2. The official answer in the version I found online is (A), not (B).

bo12345 · Answer

Sorry for the mistake on the question source. I should have used  Review  instead of  Prep . In the Manhattan Review website(practice questions) the answer is shown to be B ( The funding of the Federal light-industry program depends on the reallocation of resources earmarked for disadvantaged groups. ). Am I missing something here? I would have added the link but the forum wont allow me.

Bunuel · Answer

Ignore this question. The topic is locked and archived.

A wave of redundancies has led state governments to appeal to the fede

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