Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 22 May 2017, 08:38

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Twelve years ago and again five years ago, there were

Author Message
TAGS:

### Hide Tags

Intern
Joined: 14 Jun 2011
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 0

Twelve years ago and again five years ago, there were [#permalink]

### Show Tags

19 Jan 2012, 23:27
00:00

Difficulty:

45% (medium)

Question Stats:

65% (01:45) correct 35% (01:50) wrong based on 23 sessions

### HideShow timer Statistics

Twelve years ago and again five years ago, there were extended periods when Darfir Republic's currency, the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on the world markets, and Darfir's exports were up substantially. Now some politicians are saying that, in order to cause another similarly sized increase in exports, the government should allow the pundra to become weak again.

Which of the following if true provides the government with the strongest grounds to doubt the politican's recommendation, if followed, will achieve its aim?
a) Several of the politicians no recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness.
b) After several decades of operating well below its peak capcity, darfir's manufacturing sector is now operating at near-peak levels
c) the economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant.
d) those countries whose manufactured products compete with darfir's on the world market currently all have stable currencies
e) a sharp improvement in the efficiency of darfir's manufacturing plants would make darfir's products a bargain on the world markets even without weakening of the pundra relative to other currencies.

Can someone explain???
[Reveal] Spoiler: OA
If you have any questions
New!
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7368
Location: Pune, India
Followers: 2281

Kudos [?]: 15067 [0], given: 224

### Show Tags

20 Jan 2012, 03:31
Twelve years ago and again five years ago, there were extended periods when Darfir Republic's currency, the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on the world markets, and Darfir's exports were up substantially. Now some politicians are saying that, in order to cause another similarly sized increase in exports, the government should allow the pundra to become weak again.

Which of the following if true provides the government with the strongest grounds to doubt the politican's recommendation, if followed, will achieve its aim?
a) Several of the politicians no recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness.
b) After several decades of operating well below its peak capcity, darfir's manufacturing sector is now operating at near-peak levels
c) the economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant.
d) those countries whose manufactured products compete with darfir's on the world market currently all have stable currencies
e) a sharp improvement in the efficiency of darfir's manufacturing plants would make darfir's products a bargain on the world markets even without weakening of the pundra relative to other currencies.

Can someone explain???

It is a 'weaken the plan' question.

What is the plan?
Plan: When currency weakens, exports increase. (Foreigners can buy more using same amount of their currencies so they buy more.) Therefore, in order to cause [highlight]another similarly sized increase in exports[/highlight], the government should allow the pundra to become weak again.

Focus on the highlighted words. The aim is to cause a similarly sized increase in exports. That is what the plan is trying to achieve. On weaken questions, we focus on the conclusion. What the plan is trying to achieve is parallel to conclusion. So we focus on trying to weaken what the plan is trying to achieve. We need to find something that tells us why we will not get a similarly sized increase in exports even if we weaken pundra.

Options a, c, d and e do not talk about the reasons we will not see similarly sized increase in exports.
Option B tells us that darfir's manufacturing sector is now operating at near-peak levels. If this is true, exports cannot increase much because darfir cannot manufacture more than it is manufacturing now. If there are no extra products manufactured, there cannot be extra exports. In previous instances, darfir was manufacturing below capacity so they could manufacture extra products. Hence the plan worked in those instances but this time it may not. Therefore, option (B) is correct.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for \$199

Veritas Prep Reviews

Manager
Joined: 08 Aug 2011
Posts: 199
GPA: 3.5
Followers: 1

Kudos [?]: 14 [0], given: 51

### Show Tags

20 Jan 2012, 06:18
Here we have to weaken the politican's recommendation,which proposes that the government should allow the pundra to become weak and that would increase the export,agreed as it happen earlier.

But B suggests that darfir's manufacturing sector is now operating at near-peak levels so why would a government want to weaken it's currency hence B weakens the politican's recommendation.
Re: CR   [#permalink] 20 Jan 2012, 06:18
Similar topics Replies Last post
Similar
Topics:
5 RATT RACE: Five years ago 7 12 May 2016, 23:20
9 Five years ago, the town of Bayside, in the Katontic River 10 26 Oct 2016, 07:40
67 Twelve years ago and again five years ago, there were 15 15 Nov 2016, 19:23
32 Five years ago, as part of a plan to encourage citizens of 37 30 Jul 2016, 11:29
25 Twelve years ago and again five years ago, there were 28 01 Jul 2016, 19:18
Display posts from previous: Sort by