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

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Director
Joined: 05 Jan 2008
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Twelve years ago and again five years ago, there were [#permalink]

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06 Apr 2008, 05:44
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Twelve years ago and again five years ago, there were extended periods when the 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 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 that the politicians' recommendation, if followed, will achieve its aim?

(A) Several of the politicians now 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 peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
The country won't be able to meet the increased demand for goods if its factories are already operating at a peak. Hence no increase in revenue from exports.
(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 all currently have stable currencies.
(E) A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.
[Reveal] Spoiler: OA

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

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06 Apr 2008, 10:06
Debated between C and E.

Vote for C.
Eliminate E as there is no mention of Economy as such in the argument.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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07 Apr 2008, 16:05
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I go for E.

prasannar wrote:
Twelve years ago and again five years ago, there were extended periods when the 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 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(main argument).
Which of the following, if true, provides the government with the strongest grounds to doubt that the politicians' recommendation, if followed, will achieve its aim?

(A) Several of the politicians now recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness. <-- Strengthens argument
(B) After several decades of operating well below peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
The country won't be able to meet the increased demand for goods if its factories are already operating at a peak. Hence no increase in revenue from exports. <-- very tempting but again irrelevant to the argument which only talks of increasing exports and not about revenue from exports
(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. <-- irrelevant to the main argument - which only talks of increasing exports and not about the economy
(D) Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies. <-- So what ? Too far fetched making this irrelevant
(E) A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies. <-- Only good option I feel
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Re: Twelve years ago and again five years ago, there were [#permalink]

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07 Apr 2008, 23:35
i go with C....

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

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08 Apr 2008, 12:00
I guess its E since " rise in exports " is being questioned
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 18:58
d.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:37
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prasannar wrote:
Twelve years ago and again five years ago, there were extended periods when the 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 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 that the politicians' recommendation, if followed, will achieve its aim?

(A) Several of the politicians now 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 peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
The country won't be able to meet the increased demand for goods if its factories are already operating at a peak. Hence no increase in revenue from exports.
(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 all currently have stable currencies.
(E) A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.

I got B, and after reading some posts, I notice that it talks about revenue. However, I still think it is the best choice. Since there is no more manufacturing capacity, weakening the currency won't help; thus, government can doubt the plan.

Argument here is that weakening currency ->increased export, and we have to prove that this plan will NOT work.

A. This strengthens the argument, if at all.
C. Strong currency OR significant rise in export -> healthy economy. This argument do not relate anything to the main argument. I feel that this is irrelevant as it doesn't prove that the plan won't work.
D. Irrelevant. Not talking about strength of currency here.
E. This is also irrelevant. We are not talking about efficiency of plants. This only gives an alternative to weaken currency method and it does not prove that the politicians won't achieve their aim.

Last edited by bkk145 on 08 Apr 2008, 19:39, edited 1 time in total.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:38
it is certainly between c and e..all other are ruled out.both are close and would go with e as it is stating that there are other factors like technology to have world market gain and not simply by weakening the currency.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:42
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I don't know why I am the only one who picked B.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:48
Well I did find B very tempting but decided on E in the end - see my reasoning above ...

bkk145 wrote:
I don't know why I am the only one who picked B.
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:49
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I believe the OA for this one is B
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Re: Twelve years ago and again five years ago, there were [#permalink]

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08 Apr 2008, 19:52
I agree with bkk145. B
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Re: Twelve years ago and again five years ago, there were [#permalink]

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10 Apr 2008, 09:38
prasanna,
Is OA B?
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Re: Twelve years ago and again five years ago, there were [#permalink]

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24 Apr 2008, 04:40
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If your country is already operating at near peak production capacity, whats the point of trying to raise exports if you cant produce anymore?
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Re: Twelve years ago and again five years ago, there were [#permalink]

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24 Apr 2008, 07:22
I dont know why I'm going differently from a lot of you here, I go for D after choosing between D and E. Simply the politician recommends weak pundra so as to increase export, which can only result from bargain products in the market. Only D shows how this recommendation will not work.
Director
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Re: Twelve years ago and again five years ago, there were [#permalink]

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24 Apr 2008, 07:53
I am going with B.

D & E answer if true, will cause the plan to fail as well, but it desn't contradict the politicians point. I think...
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Re: Twelve years ago and again five years ago, there were [#permalink]

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24 Apr 2008, 09:22
OA is B
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Twelve years ago and again five years ago, there were [#permalink]

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19 Jan 2012, 23:27
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???
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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.
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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

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