Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2601:30 AM EDT
-02:30 AM EDT
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
Apr 2912:30 AM EDT
-01:30 AM EDT
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
May 0111:00 AM PDT
-12:00 PM PDT
Free- full-length test + 15 concept videos + 150+ short videos + study plan!
May 0306:30 AM PDT
-08:30 AM PDT
Verbal trouble on GMAT? Fix it NOW! Join Sunita Singhvi for a focused webinar on actionable strategies to boost your Verbal score and take your performance to the next level.
29 Nov 2021, 09:00
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
60% (01:55) correct
40%
(02:01)
wrong
based on 578
sessions
History
Date
Time
Result
Not Attempted Yet
A company that invests the necessary infrastructure in a large untapped diamond mine can reap as much as 700% profit in the first year. Some of the largest untapped diamond mines in the world are in the nation of Shagoca. Therefore, the American company that brokers a deal in the capital Conkin that allows it to put the necessary infrastructure in place at those mines stands to reap tremendous profits.
Which of the following, if true, most helps to explain why American companies are not eager to invest in infrastructure necessarily for diamond mining in Shagoca?
(A) The diamond mines in Shagoca are located close to population centers, which would allow for easy transport
(B) Diamond mining in climates closer to the equator, such as that in Shagoca, is much easier than diamond mining in regions where the soil is frozen most of the year
(C) In certain states in Shagoca, profit from diamond mining is as heavily taxed as it is in the United States
(D) A minority of the traders buying the diamonds will be citizens of Shagoca.
(E) The fifteen-year-old civil war in Shagoca has caused significant setbacks for many foreign investments.
Which of the following, if true, most helps to explain why American companies are not eager to invest in infrastructure necessarily for diamond mining in Shagoca?
(A) The diamond mines in Shagoca are located close to population centers, which would allow for easy transport
(B) Diamond mining in climates closer to the equator, such as that in Shagoca, is much easier than diamond mining in regions where the soil is frozen most of the year
(C) In certain states in Shagoca, profit from diamond mining is as heavily taxed as it is in the United States
(D) A minority of the traders buying the diamonds will be citizens of Shagoca.
(E) The fifteen-year-old civil war in Shagoca has caused significant setbacks for many foreign investments.
29 Nov 2021, 09:48
Kudos
Bookmarks
Bunuel
Let's get through this: Diamonds, 700% profit. Bring it on.
(A) The diamond mines in Shagoca are located close to population centers, which would allow for easy transport.
We are looking for reasons for American companies not to invest, all this statement is doing is giving e reasons to invest
(B) Diamond mining in climates closer to the equator, such as that in Shagoca, is much easier than diamond mining in regions where the soil is frozen most of the year
If diamond mining is easier means more profit from less work and investment, I am taking the next flight to Shagoca.(Only an insane person won't invest in such a lucrative option)
(C) In certain states in Shagoca, profit from diamond mining is as heavily taxed as it is in the United States.
Now, you are cutting my pockets and telling me indirectly you invest we will reap the benefits.
(D) A minority of the traders buying the diamonds will be citizens of Shagoca.
I can always sell it to places where I can get higher returns. Not a problem. I am In.
(E) The fifteen-year-old civil war in Shagoca has caused significant setbacks for many foreign investments.
I am a little concerned here but again it happened fifteen years ago also things were different back then doesn't mean the condition is same now, we were all savages back then.
I am In. Diamonds 700% profit. 
04 Dec 2021, 08:30
Kudos
Bookmarks
Bunuel
OFFICIAL EXPLANATION
This sounds like situation with a possibility of huge profits. There must be something we are missing to explain why American companies are not eager to invest here.
(E) is the credited answer. If there's been a civil war for 15 years, this sounds like it's not going to resolve any time soon. War = potential destruction of infrastructure as well as loss of life. Any company going into build a diamond mine could lose the sum total of their initial outlay in one well-placed bomb, losing several employees in the process! That certainly sounds like something that would make a company reluctant to invest in Shagoca.
(A) & (B) do the opposite of what we want: they both provide explanations of why the situation would be more profitable, which does not explain why companies would not want to invest there.
(C) is weak: true, no one likes paying taxes, but if you can make 700% profits on your initial investment, then taxes are not a huge concern. This, in and of itself, would not explain the reluctance of companies.
(D) is strangely irrelevant: diamonds always have buyers worldwide, and transport costs for diamonds are not significant. If some of the buyers are actually citizens of Shagoca, this makes no difference at all in how profitable these investments would be.
