Critical Reasoning

Economist: In 2015, the average per-person amount paid for goods and services purchased by consumers in Country X was the equivalent of $17,570 in United States dollars, just 30 percent of the corresponding figure of $58,566 for Country Y. Yet in 2015, there was already a substantial middle class in Country X that had discretionary income for middle-class consumer goods such as new vehicles, computers, or major household appliances, while a significant portion of the middle class in Country Y did not have sufficient income to purchase such items.

Which of the following, if true, most helps explain the discrepancy in the relationships described by the economist?

A. There are many consumer goods, such as household appliances, that are produced in Country X to be sold in the Country Y market.
B. The volume of trade between Country X and Country Y is increasing rapidly in both directions.
C. The economy of Country Y is recovering from a downturn that affected both Country Y and Country X.
D. Country X residents pay much less than their Country Y counterparts for housing, transportation, and child care.
E. In Country Y as well as in Country X, there are few assembly-line jobs in factories that pay a middle-class wage.

D

Source: Official Guide 2020

The comparison is between X, where there is less money paid for goods but the middle class has enough income to pay for the goods, and Y, where more money is paid but the middle class's income is insufficient. Instead of trying to guess a reason (as we have no information on surrounding circumstances), we'll look directly to the answer choices. This is an Alternative approach.

A. this does not explain the relation of income to money paid for goods
B. similarly to (A), this is irrelevant to the argument
C. this could imply that Y is in better shape, but we are told that X is in better shape
D. This directly explains why X residents have sufficient income to buy things. Good choice, let's keep going.
E. again, this does not give a separation between the two countries.

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