Economists have historically embraced the idea that trade between nati

Question

Economists have historically embraced the idea that trade between nations is the only means of increase in nation’s wealth. The increase in per capita income, which is the primary indicator of increase in a nation’s wealth, however is same for nations that have actively engaged international trade as those that instead focus on improving the overall education level of their citizens.

Which of the following can be inferred based on the statements above?

A. Economists’ idea that trade between nations is the only means to increase wealth of nations is flawed.

B. The nations that focus on trade are no more wealthy on average than the nations that focus on increasing the overall education level of its citizens.

C. A nation that focuses on both trade and improving its citizen’s educational outcomes is not more wealthy than one that focuses on either trade or improving education.

D. Citizens of nations that focus on increase in trade do not in turn focus on improving their education levels.

E. Companies of nations that focus on improving the educational level of its citizens do not derive a greater proportion of their revenue from exports than companies of nations that focus more on export

Hrishabh07 · Answer

why option a is correct can anyone explain?

Shlokashetty30 · Answer

Could you please specify the reason fro elimination of option B ?

ZIX · Answer

We have eliminated option B because we are talking about per capita income here. India may have a higher increase in per capita income while being less wealthy than the UK

da16 · Answer

because economists said that increasing the trade with other nations is ONLY way of increasing nation's wealth, but the arguments presents the fact that increasing the education level has just about the same affect on a nation's wealth as that of trading with other nations. So trading is not the ONLY way hence their idea is flawed

da16 · Answer

the argument only states that the per capita income, which is the "primary indicator" of the nation's wealth is the same for both types of nations. Nothing is mentioned about the comparison of the average wealth of these 2 types of nations. We cant assume that if the primary indicator is same then the average of a nation's wealth will also be the same. That's a very bold assumption

Advait01 · Answer

Read the first line, it says the economist believes that the only way to increase a nation's wealth is by trade.
The author argues that trade or per capita income is a primary indicator but it is equally valued with improving overall education
B might have been correct if the word "only" was not used in the economist's line
Therefore D

Economists have historically embraced the idea that trade between nati

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Economists have historically embraced the idea that trade between nati

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