Lowering entry barriers that foreign investors face in entering a coun

Question

Lowering entry barriers that foreign investors face in entering a country's economy produces more interest and causes investments inflow. The inflow of investments causes the country's economy to boost. Boost of the economy creates many new jobs, which enables people to ask for bigger salaries. _____________________, which leads to the development of a strong basis for a stable economic situation in the country.

Which of the following is the best piece of evidence that would work in the logic above?

A. Bigger salaries mean more taxes paid to the government.
B. New interesting jobs attract people from abroad, who spend their incomes in this country.
C. Therefore, lowering of the entry barriers to foreign investors helps some people in the economy of the country under discussion.
D. The possibility to easier get better jobs with bigger payments leads to the desire of the population to pursue more education.
E. A big percentage of those people asking for bigger salaries get some increase.

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Official Answer

D

mojorising800 · Answer

Cause and Effect
Removal of barriers -> Increased investements -> Economy boost -> Increased jobs -> Higher salaries.

E.Some People getting raise in their salaries not relevant to stable economy.
D.Pursuit of education close but irrelevant.Since no mention in the stimulus/.
C.Helps  some  people.
B.Number of people spending there incomes is questionable.hence stable economy unlikely.
A. Correct.Taxes to the gvt. probably comes the closest to a stable economy.

SudiptoGmat · Answer

A for me too but OA (800Score) says its D. I was not convinced. Dont get it wrong but Arab countries do not have that much talent pool (by education) but they are rich for oil. Countries can be economically developed without having very good education (in long term yes) but tax will make the country economically rich.

!!!There is no income tax in saudi arabia so its bad example!!! lol

!!!There is no income tax in saudi arabia so its bad example!!! lol

amma4u · Answer

hah - nice. the correct ans is D. the q/stem says ------- would lead development of strong basis for a better economy. "basis" here refers to education. better jobs ppl are encouraged to go back to books. ripple effect.

abhas59 · Answer

IF we choose D, then we do make an assumption that people having higher salaries will prefer education, which will lead to generation of more high paying jobs & better education.

If A is not true, then, although people might earn high salaries, government will not be able to increase its revenues. Thus, public sector jobs and business will not benefit.
Above stated in A is more of a fact than an assumption.

Please correct me if I am wrong.

paresh124 · Answer

IMO A 
Better jobs are not linked to education therefore making assumption that better jobs would lead to more education is a bit far reached. Therefore D is eliminated however A suits the purpose but it becomes too easy for being a 700 group question

seekmba · Answer

A says that bigger salaries mean more taxes paid to the government. But the argument says that Boost of economy creates many jobs and ENABLES people to ask for bigger salaries. (however this does not mean that people will get bigger salaries and more taxes will be paid to government)

We have to have a factor of possibility in the options. Only D says that

The POSSIBILITY to easily get better jobs with bigger payments leads to a desire of the population to pursue more education.

gautrang · Answer

I pick A.

This is such a bad question. A seems to be the best, even both A and D and you can still argue for errorness of both. There is abosulutely no hint as to what consititute "basis" here.

navami · Answer

How can more education relate stable economic situation? My vote for A : more tax for govt do help in a stable economy.

gurpreetsingh · Answer

For verbal practice prefer official material only. Consider LSAT cr/rc if you need more practice.

A seems to be the correct answer.

LifeChanger · Answer

surprised to read D as the OA...Can anyone who has the source(800score) refer and post the OA and OE?
My vote is for A-seems to be a clear winner for me

Shoumik · Answer

I think with CR questions, you have to assume whatever the author states is TRUE. You cannot bring external worldwide views into the argument.

amkabdul · Answer

i would vote for B though no one has done that yet; by attracting more people to come to the country and spend their money, the economy of the country is bound to improve.

Any takers on this ???

royalpranjal · Answer

It’s more of a grammar question. ‘Which’ must explain the noun before. The only noun that it explains is in D (education).

Posted from my mobile device

PRIYANSHU1111 · Answer

there's a lot of confusion about the correct OA plus this is a very high level(800 level) question

Avibhati · Answer

It's following a pattern of happening an event followed by the result of that event so according to that A should be answerr

Lowering entry barriers that foreign investors face in entering a coun

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GMAT Critical Reasoning (CR) Questions

Lowering entry barriers that foreign investors face in entering a coun

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