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01 Feb 2026, 23:28
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
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Question Stats:
79% (01:48) correct
21%
(01:54)
wrong
based on 182
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Which of the following most logically completes the passage?
Federal officers analyzing the stagnant industries of the Alcappian region divided the industries into two categories: consumer goods manufacturing and the service industry. According to the analysts, unlike the service providers, most of the manufacturing companies in the region were not profitable. Some economists’ recommendation to focus federal aid on the service industry alone, however, will not necessarily improve the economic situation of the region, since ________.
A. most manufacturing industry companies have been in the Alcappian region for at least a decade, whereas some of the service companies were established in the region in the last decade
B. over the last thirty years, a third of the least profitable manufacturing companies have closed business, and their employees have emigrated from the Alcappian region
C. a significant portion of the revenue of service providers in the region is accounted for by contracts to manufacturing industry companies
D. Local service industry companies do not provide all the services needed by the companies in the Alcappian region
E. Neither industry has greater profitability, relative to the overall size of the industry, than the profitability of the ever-growing shipping industry in the region
Federal officers analyzing the stagnant industries of the Alcappian region divided the industries into two categories: consumer goods manufacturing and the service industry. According to the analysts, unlike the service providers, most of the manufacturing companies in the region were not profitable. Some economists’ recommendation to focus federal aid on the service industry alone, however, will not necessarily improve the economic situation of the region, since ________.
A. most manufacturing industry companies have been in the Alcappian region for at least a decade, whereas some of the service companies were established in the region in the last decade
B. over the last thirty years, a third of the least profitable manufacturing companies have closed business, and their employees have emigrated from the Alcappian region
C. a significant portion of the revenue of service providers in the region is accounted for by contracts to manufacturing industry companies
D. Local service industry companies do not provide all the services needed by the companies in the Alcappian region
E. Neither industry has greater profitability, relative to the overall size of the industry, than the profitability of the ever-growing shipping industry in the region
02 Feb 2026, 00:08
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C: The economists want to focus aid only on the service industry because manufacturing is not profitable. But if service providers earn a significant portion of their revenue from manufacturing companies, then helping services alone won’t fix the problem - those service companies depend on the very manufacturing firms that are struggling.
02 Feb 2026, 08:42
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Interesting stem 😂
A rundown:
1. A region has 2 types of industries - Service and Manufacturing.
2. The service industry is making a profit, unlike the manufacturing industry.
3. Economists say that federal aid to the SERVICE industry won't help the issue at hand.
Point number 3 is why I think that the stem is interesting: If the service industry is already in a profitable situation, why would we need to provide federal aid to them and not the manufacturing industry? The plan seems to be that if a company is doing good, we give them aid so they can do even better instead of helping the struggling ones - it goes a little bit against convention but that is good because it's how the test traps you.
According to the question, we need to find an answer choice that explains why we will not be solving the economic problems of the area by providing federal aid to the service industry.
Let's start eliminating by using simple and concise logic.
A. Most manufacturing industry companies have been in the Alcappian region for at least a decade, whereas some of the service companies were established in the region in the last decade. WRONG.
Does it matter if the industry is recent or old? We cannot be sure, because the age of a company won't determine the impact federal aid will have on it.
B. Over the last thirty years, a third of the least profitable manufacturing companies have closed business, and their employees have emigrated from the Alcappian region. WRONG.
That's pretty sad. Centerville and Louiseville send their regards. Manufacturing's bottom third has shut shop over the last 30 years, if anything - this tells me that aid should be given to the manufacturing sectors. But thinking that this is a reason why aid to service sector companies won't work is a trap! Just because manufacturing sector companies would make better use of the aid doesn't imply in any way that service sector companies won't benefit from aid.
C. A significant portion of the revenue of service providers in the region is accounted for by contracts to manufacturing industry companies. CORRECTO.
If a big chunk of the money of the service sector is coming from the manufacturing companies, this directly tells us that manufacturing profits/performance is the real bottleneck and there is no point in shoving money into the service sector because the profits will always be limited by the manufacturing sector's performance.
D. Local service industry companies do not provide all the services needed by the companies in the Alcappian region. WRONG.
The service industry doesn't NEED to provide ALL (100% of the services required), even if they provide 90% of the required services, the question remains - why will federal aid not help?
E. Neither industry has greater profitability, relative to the overall size of the industry, than the profitability of the ever-growing shipping industry in the region. WRONG.
Ah, yes, the elusive third industry. Notice the logic they use, Manufacturing<Service<Shipping (Profitability relative to size), to make us think that because the third sector is doing better than sectors 1 and 2, therefore aid to 2 will not help the overall picture. That's like saying for 3 monkeys in a cage, giving bananas to the first and second won't help the overall health of the monkeys because the third monkey is the healthiest. HUH? GIVE BANANAS TO ALL THE MONKEYS. Excuse me.
Doesn't explain why federal aid won't help the overall economy.
__________________________________________________________________
Aakkash Singh
The Verbal Expert - V90
My website (overhaul soon) - http://www.centprep.com
Book a free tutoring session here - http://www.calendly.com/aakkashgmat
"The Verbal sections on the GMAT and GRE are testing your investigative skills, don't be Dr. Watson"
A rundown:
1. A region has 2 types of industries - Service and Manufacturing.
2. The service industry is making a profit, unlike the manufacturing industry.
3. Economists say that federal aid to the SERVICE industry won't help the issue at hand.
Point number 3 is why I think that the stem is interesting: If the service industry is already in a profitable situation, why would we need to provide federal aid to them and not the manufacturing industry? The plan seems to be that if a company is doing good, we give them aid so they can do even better instead of helping the struggling ones - it goes a little bit against convention but that is good because it's how the test traps you.
According to the question, we need to find an answer choice that explains why we will not be solving the economic problems of the area by providing federal aid to the service industry.
Let's start eliminating by using simple and concise logic.
A. Most manufacturing industry companies have been in the Alcappian region for at least a decade, whereas some of the service companies were established in the region in the last decade. WRONG.
Does it matter if the industry is recent or old? We cannot be sure, because the age of a company won't determine the impact federal aid will have on it.
B. Over the last thirty years, a third of the least profitable manufacturing companies have closed business, and their employees have emigrated from the Alcappian region. WRONG.
That's pretty sad. Centerville and Louiseville send their regards. Manufacturing's bottom third has shut shop over the last 30 years, if anything - this tells me that aid should be given to the manufacturing sectors. But thinking that this is a reason why aid to service sector companies won't work is a trap! Just because manufacturing sector companies would make better use of the aid doesn't imply in any way that service sector companies won't benefit from aid.
C. A significant portion of the revenue of service providers in the region is accounted for by contracts to manufacturing industry companies. CORRECTO.
If a big chunk of the money of the service sector is coming from the manufacturing companies, this directly tells us that manufacturing profits/performance is the real bottleneck and there is no point in shoving money into the service sector because the profits will always be limited by the manufacturing sector's performance.
D. Local service industry companies do not provide all the services needed by the companies in the Alcappian region. WRONG.
The service industry doesn't NEED to provide ALL (100% of the services required), even if they provide 90% of the required services, the question remains - why will federal aid not help?
E. Neither industry has greater profitability, relative to the overall size of the industry, than the profitability of the ever-growing shipping industry in the region. WRONG.
Ah, yes, the elusive third industry. Notice the logic they use, Manufacturing<Service<Shipping (Profitability relative to size), to make us think that because the third sector is doing better than sectors 1 and 2, therefore aid to 2 will not help the overall picture. That's like saying for 3 monkeys in a cage, giving bananas to the first and second won't help the overall health of the monkeys because the third monkey is the healthiest. HUH? GIVE BANANAS TO ALL THE MONKEYS. Excuse me.
Doesn't explain why federal aid won't help the overall economy.
__________________________________________________________________
Aakkash Singh
The Verbal Expert - V90
My website (overhaul soon) - http://www.centprep.com
Book a free tutoring session here - http://www.calendly.com/aakkashgmat
"The Verbal sections on the GMAT and GRE are testing your investigative skills, don't be Dr. Watson"
