It is currently 23 Nov 2017, 20:35

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

V07-19

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
1 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133160 [1], given: 12415

V07-19 [#permalink]

Show Tags

New post 16 Sep 2014, 02:29
1
This post received
KUDOS
Expert's post
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

51% (01:06) correct 49% (01:44) wrong based on 89 sessions

HideShow timer Statistics

Ten years ago and again five years ago, there were extended periods when the Bangladesh’s currency, the taka, was weak: its value was unusually low relative to the world’s most stable currencies. Both times a weak taka made Bangladesh’s manufactured products a bargain on world markets, and Bangladesh’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 taka 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 taka 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, Bangladesh’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 Bangladesh’s on the world market all currently have stable currencies.
E. A sharp improvement in the efficiency of Bangladesh’s manufacturing plants would make Bangladesh’s products a bargain on world markets even without any weakening of the taka relative to other currencies.
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 133160 [1], given: 12415

Expert Post
1 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133160 [1], given: 12415

Re V07-19 [#permalink]

Show Tags

New post 16 Sep 2014, 02:29
1
This post received
KUDOS
Expert's post
1
This post was
BOOKMARKED
Official Solution:

Ten years ago and again five years ago, there were extended periods when the Bangladesh’s currency, the taka, was weak: its value was unusually low relative to the world’s most stable currencies. Both times a weak taka made Bangladesh’s manufactured products a bargain on world markets, and Bangladesh’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 taka 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 taka 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, Bangladesh’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 Bangladesh’s on the world market all currently have stable currencies.
E. A sharp improvement in the efficiency of Bangladesh’s manufacturing plants would make Bangladesh’s products a bargain on world markets even without any weakening of the taka relative to other currencies.


(A) Is irrelevant (politicians' stances / opinions don't have a direct bearing on any of the economic indicators in the argument).

(C) We cannot evaluate the effects of (c) until we know whether the purported rise in exports will be 'significant' (circular reasoning - we can't base advocacy for/against a policy on its uncertain results)

(D) Is irrelevant, as there's no material difference between this situation and the situation during the first two export booms: notice that, in those cases, the reference currencies were all stable as well

(E) Is irrelevant: the question asks us to undermine the politician's suggestion, not to suggest an alternative.


Answer: B
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 133160 [1], given: 12415

Manager
Manager
avatar
Joined: 23 Jan 2012
Posts: 75

Kudos [?]: 16 [0], given: 40

Re: V07-19 [#permalink]

Show Tags

New post 16 Sep 2014, 14:43
Good Question Bunuel.

Kudos [?]: 16 [0], given: 40

1 KUDOS received
Current Student
User avatar
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 956

Kudos [?]: 1904 [1], given: 229

Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 26 Sep 2014, 13:25
1
This post received
KUDOS
Bunuel I think something is missing in this question stem. Question does not indicate why/what to choose.
_________________

Piyush K
-----------------------
Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time. ― Thomas A. Edison
Don't forget to press--> Kudos :)
My Articles: 1. WOULD: when to use? | 2. All GMATPrep RCs (New)
Tip: Before exam a week earlier don't forget to exhaust all gmatprep problems specially for "sentence correction".

Kudos [?]: 1904 [1], given: 229

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42338

Kudos [?]: 133160 [0], given: 12415

Re: V07-19 [#permalink]

Show Tags

New post 27 Sep 2014, 01:46

Kudos [?]: 133160 [0], given: 12415

Manager
Manager
User avatar
Joined: 23 Sep 2013
Posts: 107

Kudos [?]: 27 [0], given: 81

Concentration: Strategy, Marketing
WE: Engineering (Computer Software)
Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 27 Sep 2014, 12:42
I am not convinced with the choice B. How can strong manufacturing impact the exports. It's no where mentioned in the argument.I have no idea how option 'B' undermines the whole argument. Can anyone please explain?
Thanks

Kudos [?]: 27 [0], given: 81

Intern
Intern
avatar
B
Joined: 15 Aug 2014
Posts: 20

Kudos [?]: 4 [0], given: 25

Re: V07-19 [#permalink]

Show Tags

New post 27 Sep 2014, 13:17
solitaryreaper wrote:
I am not convinced with the choice B. How can strong manufacturing impact the exports. It's no where mentioned in the argument.I have no idea how option 'B' undermines the whole argument. Can anyone please explain?
Thanks


As mentioned in the statement B, bangladesh is already performing at its peak levels in manufacturing exports. Hence there will now be no further benefit of reducing the value of the taka as claimed in the original argument.

Kudos [?]: 4 [0], given: 25

Senior Manager
Senior Manager
User avatar
B
Joined: 08 Jun 2015
Posts: 328

Kudos [?]: 21 [0], given: 101

Location: India
GMAT 1: 640 Q48 V29
Re: V07-19 [#permalink]

Show Tags

New post 02 Nov 2015, 01:00
Can you please explain why E is wrong ? Does not E give an alternate reason and thereby weaken the conclusion ?
_________________

" The few , the fearless "

Kudos [?]: 21 [0], given: 101

Intern
Intern
avatar
Joined: 17 Sep 2015
Posts: 12

Kudos [?]: 4 [0], given: 8

GMAT 1: 760 Q50 V42
GPA: 3.65
Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 15 Nov 2015, 13:22
I think this is a valuable question in that it helps clarify why E should not be selected as the correct answer; E offers an alternative solution rather than undermining the assumption of the politicians. That said, B is not helpful either here. That the manufacturing sector is operating at near-peak levels does not preclude exports from rising. A decline in currency valuation could still lead to greater export demand. Further, other non-manufacturing sectors could increase production to meet the increased demand from other countries following the currency devaluation, again increasing exports. The problem does not state that the rise in exports must come from the manufacturing industry.

Even as an economics major, I can't see the logic here, though, admittedly, the last time I thought that hard about economics was 5 years ago. Can anyone clarify?

Kudos [?]: 4 [0], given: 8

Intern
Intern
avatar
Joined: 29 Oct 2014
Posts: 25

Kudos [?]: 3 [0], given: 6

Schools: Molson '19
GMAT Date: 12-06-2014
GMAT ToolKit User
Re: V07-19 [#permalink]

Show Tags

New post 03 Mar 2016, 16:54
I have similar doubts as iwantstanford do . Can anyone please clarify ?? E-gmat

Kudos [?]: 3 [0], given: 6

Intern
Intern
avatar
Joined: 26 May 2016
Posts: 1

Kudos [?]: 5 [0], given: 13

Re: V07-19 [#permalink]

Show Tags

New post 06 Jul 2016, 08:09
This question is the same as V07-07.

Kudos [?]: 5 [0], given: 13

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3522 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 07 Jul 2016, 14:56
GaminAudacieux wrote:
This question is the same as V07-07.


Thank you for pointing out. We are withdrawing this question shortly from the test question bank.

Kudos [?]: 3522 [0], given: 22

Intern
Intern
avatar
Joined: 11 Nov 2014
Posts: 1

Kudos [?]: [0], given: 132

GMAT ToolKit User Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 09 Sep 2016, 00:28
But it is still here and i got it wrong.

Kudos [?]: [0], given: 132

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3522 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 09 Sep 2016, 09:53
maqutadir1 wrote:
But it is still here and i got it wrong.


I got a confirmation from the person responsible for the question bank section that Q V07-07 has been disabled on 8th July. Did you get this question while taking a test?

Kudos [?]: 3522 [0], given: 22

Intern
Intern
avatar
Joined: 03 Nov 2014
Posts: 3

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

Re: V07-19 [#permalink]

Show Tags

New post 28 Sep 2016, 19:33
I got this question in a recent mock, I chose option E, and after evaluating my exam errors, I still chose E for this question. Option B, is flawed as the the increase in manufacturing is not related to exports. So, please either remove this question or updated it accordingly.

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

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3522 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 29 Sep 2016, 10:34
ravitejuppu wrote:
I got this question in a recent mock, I chose option E, and after evaluating my exam errors, I still chose E for this question. Option B, is flawed as the the increase in manufacturing is not related to exports. So, please either remove this question or updated it accordingly.


Since manufacturing sector is already at peak, even if a demand for Bangladeshi products develops outside Bangladesh because of weak currency (or whatsoever reason), the country would not be able meet that export demand - it has no capacity to produce more. Do you now understand how production is directly related to export?

Option B is the correct choice and the explanation why option E is wrong is already stated in OE - there is no problem with this question. In case you still do not agree, please feel free to post back.

Kudos [?]: 3522 [0], given: 22

Intern
Intern
avatar
Joined: 03 Nov 2014
Posts: 3

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

Re: V07-19 [#permalink]

Show Tags

New post 29 Sep 2016, 18:43
Thanks for the response, but one thing which I still don't understand is, even if the manufacturing is at its peak and if the taka value is relatively high, then the other countries might be hesitant to import the products from Bangladesh right?

Besides, in your explanation you are emphasizing on exports getting maxed out due to the already high manufacturing, but nothing in the question stem states that these products manufactured in Bangladesh are primarily for exports, what if they are marketed with in Bangladesh and if that's the case, the Politicians idea would attract other countries to import if the taka value is lowered and thus increase exports.

Also, I don't understand why OE is irrelevant here, because this option is directly emphasizing on the facts that exports can be increased without lowering the taka value. Again, I might be skewed in my thought process. So any suggestion will be of great value not just in this question but my approach in CR in general.

E. A sharp improvement in the efficiency of Bangladesh’s manufacturing plants would make Bangladesh’s products a bargain on world markets even without any weakening of the taka relative to other currencies.

(E) Is irrelevant: the question asks us to undermine the politician's suggestion, not to suggest an alternative.

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

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3522 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 01 Oct 2016, 02:13
ravitejuppu wrote:
Thanks for the response, but one thing which I still don't understand is, even if the manufacturing is at its peak and if the taka value is relatively high, then the other countries might be hesitant to import the products from Bangladesh right?

Besides, in your explanation you are emphasizing on exports getting maxed out due to the already high manufacturing, but nothing in the question stem states that these products manufactured in Bangladesh are primarily for exports, what if they are marketed with in Bangladesh and if that's the case, the Politicians idea would attract other countries to import if the taka value is lowered and thus increase exports.

Also, I don't understand why OE is irrelevant here, because this option is directly emphasizing on the facts that exports can be increased without lowering the taka value. Again, I might be skewed in my thought process. So any suggestion will be of great value not just in this question but my approach in CR in general.

E. A sharp improvement in the efficiency of Bangladesh’s manufacturing plants would make Bangladesh’s products a bargain on world markets even without any weakening of the taka relative to other currencies.

(E) Is irrelevant: the question asks us to undermine the politician's suggestion, not to suggest an alternative.


Ok, I shall try to explain once again. No, I am not indicating that export is maxed out. My point is that the manufacturing capacity is maxed out:
Let us say Bangladesh is currently manufacturing 1000 units of items - some of which (say 700 units) is used within Bangladesh and some (say 300 units) are exported (the distribution does not matter).

Bangladesh CANNOT produce more than 1000 units. Now suppose the Bangladesh currency is weakened. Foreign countries will now want to buy 600 units ( instead of 300 they were buying previously). However Bangladesh does not have the capacity to produce this excess demand of 600-300 = 300 units. Bangladesh is now required to produce 1300 units (700 for domestic use and 600 for export), but it has capacity to produce only 1000 units. Therefore weakening the currency does not help boost export (it boosted export demand, but could not boost export supply because of manufacturing constraint).

The conclusion is that weakening taka will boost export. There are two parts: weakening taka and boost export. The weakening statement must point out why weakening taka will NOT boost export. Option E does not address the weakening taka part.

Kudos [?]: 3522 [0], given: 22

Intern
Intern
avatar
Joined: 18 Nov 2016
Posts: 1

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

V07-19 [#permalink]

Show Tags

New post 24 Nov 2016, 21:31
"Bangladesh’s manufacturing sector is now operating at near-peak levels."

Option B says the manufacturing sector is operating at near-peak levels but not at peak levels. We are assuming the effort is already maxed out. May be the difference in manufacturing effort (Peak - nearly peak) is enough to meet the export demand.

I think E was better fit until option B is rephrased.

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

Expert Post
Verbal Expert
User avatar
S
Joined: 14 Dec 2013
Posts: 3200

Kudos [?]: 3522 [0], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V07-19 [#permalink]

Show Tags

New post 26 Nov 2016, 04:21
sathish.never@gmail.com wrote:
"Bangladesh’s manufacturing sector is now operating at near-peak levels."

Option B says the manufacturing sector is operating at near-peak levels but not at peak levels. We are assuming the effort is already maxed out. May be the difference in manufacturing effort (Peak - nearly peak) is enough to meet the export demand.

I think E was better fit until option B is rephrased.


Since the word "substantially" is used, it is alright to conclude that difference between near-peak and peak would not be able to cater to the substantial ("similarly sized") increase.

Option E is irrelevant altogether. The argument is about whether the plan to weaken taka would boost the export - the argument is not about whether some alternative plan could boost the export.

Kudos [?]: 3522 [0], given: 22

Re: V07-19   [#permalink] 26 Nov 2016, 04:21

Go to page    1   2    Next  [ 25 posts ] 

Display posts from previous: Sort by

V07-19

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: chetan2u, Bunuel



cron

GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.