Official Solution:
Because of political unrest in the world’s largest natural gas exporting country Qatania, the supply of natural gas, which is used to produce energy, has been disrupted, increasing the gas prices worldwide significantly. Gormenia depends heavily on natural gas for producing energy and imports the majority of its requirement of natural gas from Qatania. Therefore the political unrest in Qatania would have a significant long term impact on Gormenia’s economy.
Which of the following options, if true, weakens the above argument?
A. The Gormenian Government will provide subsidies to the Gormenians to compensate them for the rising gas prices.
B. Gormenia has signed a deal with Egatia, who will supply natural gas to Gormenia at the prevailing gas prices.
C. Gormenia is investing significantly in alternative energy sources, such as solar energy plants, that will shortly start producing required amounts of energy within Gormenia.
D. There are no new natural gas sources available worldwide for producing the deficit in supply of natural gas caused by the political unrest in Qatania.
E. Gormenia is one of the key players who contributed to creating the political unrest in Qatania.
A. Even if the Government provides subsidies, the Gormenian economy overall will still be impacted because the Government has to bear the excess expenditures that will be paid to the Gormenians - the impact will then shift from the citizens to the Government, but the impact remains within Gormenia.
B. Since Gormenia will import gas from Egatia
at the prevailing gas prices, which has increased
worldwide significantly, the Gormenian economy will be impacted.
C. Correct. This option indicates that Gormenia’s
heavy dependence on natural gas for producing energy will be eliminated because
shortly required energy will be produced from alternative energy sources within Gormenia. Thus Gormenia would be able to cut down its import of natural gas, possibly not having a significant impact in the long run from the disruption in supply of natural gas.
D. This option implies that the price of natural gas is expected to remain high, thereby supporting the argument.
E. What has caused the unrest in Qatania has no bearing on the scarcity of natural gas and its impact on Gormenia’s economy.
Answer: C