BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

Economic Considerations

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
MBA Student
Posts: 113
Joined: Sat Dec 05, 2009 10:05 pm
Location: West Lafayette
Thanked: 1 times
GMAT Score:700
by g000fy » Wed Oct 06, 2010 12:17 pm
Economic considerations colour every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.
The reasoning in the passage assumes which one of the following?
(A) A nation that does not lend to any other nation cannot be a world leader.
(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.
(C) A nation that has the terms of its dealings with another nation set by that nation cannot be a world leader.
(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.
(E) A nation that has no dealings with any other nation cannot be world leader.

Source - Aristotle CR Set

OA is C
Last edited by g000fy on Thu Oct 07, 2010 7:15 am, edited 1 time in total.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Critical Reasoning |
User avatar
Community Manager
Posts: 991
Joined: Thu Sep 23, 2010 6:19 amFollowed by: 24 members
Location: Bangalore, India
Thanked: 146 times

by shovan85 » Wed Oct 06, 2010 12:35 pm
g000fy wrote:Economic considerations colour every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.
The reasoning in the passage assumes which one of the following?
(A) A nation that does not lend to any other nation cannot be a world leader.
(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.
(C) A nation that has the terms of its dealings with another nation set by that nation cannot be a world leader.
(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.
(E) A nation that has no dealings with any other nation cannot be world leader.

Source - Aristotle CR Set
IMO C

Borrower is bound to terms of deals of Lender.
Assumption:
(A) Nothing mentioned about Borrower
(B) Lender -> leader. But how do you know that only one Lender is there?
(C) A nation that has the terms of its dealings with another nation set by that nation cannot be a world leader.
(D) More concerned about Lender than Borrower. We need to see why CAN NOT be a leader
(E) This country is neutral. Can be / cannot be a Leader.
Borrower cannot be a Leader.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 1119
Joined: Fri May 07, 2010 8:50 amFollowed by: 3 members
Thanked: 29 times

by diebeatsthegmat » Wed Oct 06, 2010 2:30 pm
g000fy wrote:Economic considerations colour every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.
The reasoning in the passage assumes which one of the following?
(A) A nation that does not lend to any other nation cannot be a world leader.
(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.
(C) A nation that has the terms of its dealings with another nation set by that nation cannot be a world leader.
(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.
(E) A nation that has no dealings with any other nation cannot be world leader.

Source - Aristotle CR Set
E consideration cover all aspect of inter/. dealing...
nations give out the term of deals with the borrower= is it close to " the nation who loans money ( consider banks) to other nations ( borrowers) can say a time when the borrowers have to pay back the money???
concluded : owners are never the world leader...
i chose B
what is the answer?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
MBA Student
Posts: 113
Joined: Sat Dec 05, 2009 10:05 pm
Location: West Lafayette
Thanked: 1 times
GMAT Score:700

by g000fy » Thu Oct 07, 2010 7:18 am
diebeatsthegmat wrote:
g000fy wrote:Economic considerations colour every aspect of international dealings, and nations are just like individuals in that the lender sets the terms of its dealings with the borrower. That is why a nation that owes money to another nation cannot be world leader.
The reasoning in the passage assumes which one of the following?
(A) A nation that does not lend to any other nation cannot be a world leader.
(B) A nation that can set the terms of its dealings with other nations is certain to be a world leader.
(C) A nation that has the terms of its dealings with another nation set by that nation cannot be a world leader.
(D) A nation that is a world leader can borrow from another nation as long as that other nation does not set the terms of the dealings between the two nations.
(E) A nation that has no dealings with any other nation cannot be world leader.

Source - Aristotle CR Set
E consideration cover all aspect of inter/. dealing...
nations give out the term of deals with the borrower= is it close to " the nation who loans money ( consider banks) to other nations ( borrowers) can say a time when the borrowers have to pay back the money???
concluded : owners are never the world leader...
i chose B
what is the answer?
I chose B too however I failed to recognize the verbiage that means nation is certain to be a world leader. As shovan85 said, "how do you know that only one Lender is there" which makes this a weak choice. OA is C
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
GMAT Instructor
Posts: 1302
Joined: Mon Oct 19, 2009 2:13 pmFollowed by: 164 members
Location: Toronto
Thanked: 539 times
GMAT Score:800

by Testluv » Fri Oct 08, 2010 12:18 am
Guys,

this is an assumption question--something the author's reasoning depends on. The more extreme a statement, the less likely it is that any given argument will depend on it.

What's the extreme word in Choice B?

Choices with extreme wording are always wrong in assumption questions unless the argument itself has extreme components--which is fairly rare.

***

The author's reason for thinking that a borrower can't be a world leader is that the borrower has the terms of its dealings with another nation set by that other nation. Thus, the author is committed to thinking that a nation that has the terms of its dealings with another nation set by that nation can't be a world leader (choice C).

We can use the Kaplan denial test:

Choice C reads:

A nation that has the terms of its dealings with another nation set by that nation CANNOT be a world leader

whose denial is:

A nation that has the terms of its delaings with another nation set by that nation CAN be a world leader

in which case the author's reason for thinking that these nations can't be world leaders is no longer a good reason for thinking that they can't be world leaders. Because the argument fails to hold upon the negation of choice C, we know that the argument's existence depends on choice C.
Kaplan Teacher in Toronto
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
MBA Student
Posts: 113
Joined: Sat Dec 05, 2009 10:05 pm
Location: West Lafayette
Thanked: 1 times
GMAT Score:700

by g000fy » Fri Oct 08, 2010 4:08 am
Makes sense! Thanks!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 2326
Joined: Mon Jul 28, 2008 3:54 amFollowed by: 2 members
Thanked: 173 times
GMAT Score:710

by gmatmachoman » Fri Oct 08, 2010 10:15 am
g000fy wrote:Makes sense! Thanks!
Dude,

If u see my Thanks Given data..all goes to deepak Dada ONLY!! He is one gem of all!!

I have a long long long relation with dada!!

Just saw tat He's BACK!!

If u want some solid answers for tough ones from him, plz go thru his CR column..They are (were) fabulous!!

Enjoy dude..
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
MBA Student
Posts: 113
Joined: Sat Dec 05, 2009 10:05 pm
Location: West Lafayette
Thanked: 1 times
GMAT Score:700

by g000fy » Fri Oct 08, 2010 10:19 am
gmatmachoman wrote:
g000fy wrote:Makes sense! Thanks!
Dude,

If u see my Thanks Given data..all goes to deepak Dada ONLY!! He is one gem of all!!

I have a long long long relation with dada!!

Just saw tat He's BACK!!

If u want some solid answers for tough ones from him, plz go thru his CR column..They are (were) fabulous!!

Enjoy dude..
I've a question - two actually :P - how to see your thanks given data? and where to find his CR column?? :?:
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 2326
Joined: Mon Jul 28, 2008 3:54 amFollowed by: 2 members
Thanked: 173 times
GMAT Score:710

by gmatmachoman » Fri Oct 08, 2010 10:40 am
g000fy wrote:
gmatmachoman wrote:
g000fy wrote:Makes sense! Thanks!
Dude,

If u see my Thanks Given data..all goes to deepak Dada ONLY!! He is one gem of all!!

I have a long long long relation with dada!!

Just saw tat He's BACK!!

If u want some solid answers for tough ones from him, plz go thru his CR column..They are (were) fabulous!!

Enjoy dude..
I've a question - two actually :P - how to see your thanks given data? and where to find his CR column?? :?:
May be u can see his first 200 posts..

and My thanks..ohh it counts to 200+
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Senior | Next Rank: 100 Posts
Posts: 85
Joined: Sat Jan 30, 2010 3:49 am
Location: Hyderbad, India
GMAT Score:660

by abhi.genx7 » Tue Oct 12, 2010 2:33 am
Thanks a ton , I opted C nd was confused to see others opting B and D .
Thank you instructor
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Newbie | Next Rank: 10 Posts
Posts: 5
Joined: Thu Jul 05, 2012 9:33 am

by The AJ » Wed Aug 15, 2012 4:57 am
I understood why C is right but what is the problem with D?
Please explain !!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 27
Joined: Wed Feb 15, 2012 10:06 am
Thanked: 1 times

by coolmrityu » Tue Nov 06, 2012 6:51 am
Note one thing helpful in Assumption -

If X --> Y

Then the assumption NOT X --> Y is always wrong.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1