The automobile industry in Country A argues that, because foreign automakers underpay workers and get nationally subsidized materials, they can offer artificially low prices. Thus, the industry argues, the current 8 percent tariff on imported products should be increased for automobiles. However, other industries in Country A remain healthy despite competition with imported products without exceptional tariffs. This fact indicates an increased automobile tariff is unnecessary.
Which of the following, if true, most strongly supports the argument of Country A's automobile industry against the challenge made above?
(A)In some industries-such as childcare, scientific equipment, and higher education-consumers care far more about the quality of the product than the price.
(B)Many governments support automobile exports so strongly that they would be willing to increase subsidies to offset any additional costs that are a result of exports.
(C)There are several industries for which the ratio of workers' wages in Country A to the workers' wages in other countries is even higher than it is in the automobile industry.
(D)Because of a scarcity of mineral and metal resources, Country A's automobile industry has to import, and pay tariffs on, most mineral or metal materials used to produce automobiles. (CORRECT ANSWER)
(E)No industries in Country A other than the automobile industry, including those whose raw materials are highly taxed, have asked for an increase of the 8% tariff.
OA D
Knewton Support 1
This topic has expert replies
- itsmebharat
- Master | Next Rank: 500 Posts
- Posts: 150
- Joined: Tue Aug 18, 2009 7:36 am
- Location: gurgaon
- Thanked: 8 times
- Followed by:2 members
- cans
- Legendary Member
- Posts: 1309
- Joined: Mon Apr 04, 2011 5:34 am
- Location: India
- Thanked: 310 times
- Followed by:123 members
- GMAT Score:750
IMO D
a)It doesn't talk about automobile industry as such
b) irrelevant (talks about exports)
c) It weakens the argument. (some industries pay more wages but still remain healthy without extra tariffs)
d) correct. automobile industry in A needs to import raw materials and thus costs increase substantially
e) weakens the argument.
a)It doesn't talk about automobile industry as such
b) irrelevant (talks about exports)
c) It weakens the argument. (some industries pay more wages but still remain healthy without extra tariffs)
d) correct. automobile industry in A needs to import raw materials and thus costs increase substantially
e) weakens the argument.
If my post helped you- let me know by pushing the thanks button
Contact me about long distance tutoring!
[email protected]
Cans!!
Contact me about long distance tutoring!
[email protected]
Cans!!