GPREP - need expln

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GPREP - need expln

by aj5105 » Thu Oct 09, 2008 4:12 am
Utrania was fomerly a major petroleum exporter, but in recent decades economic stagnation and restrictive regulations inhibited investment in new oil fields. In consequence, Utranian oil exports dropped steadily as old fields became depleted. Utrania's currently improving economic situation, together with less-restrictive regulations, will undoubtedly result in the rapid development of new fields. However, it would be premature to conclude that the rapid development of new fields will result in higher oil exports, because ___.

A the price of oil is expected to remain relatively stable over the next several years

B the improvement in the economic situation in Utrania is expected to result in a dramatic increase in the proportion of Utranians who own automobiles

C most of the investment in new oil fields in Utrania is expected to come from foreign sources

D new technology is available to recover oil from old oil fields formerly regarded as depleted

E many of the new oil fields in Utrania are likely to be as productive as those that were developed during the period when Utrania was a major oil exporter


OA - B.
Source: — Critical Reasoning |

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by Mani_mba » Thu Oct 09, 2008 7:16 am
IMO B.

The increase in automobiles will require correspondingly sufficient oil availability in Utrania and hence higher oil exports cannot be predicted.

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by vivek.kapoor83 » Thu Oct 09, 2008 8:44 am
Agree with Mani...they will have no oil to export as domestic demand for petrol will increase.SO, B

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by chase4meg » Thu Oct 09, 2008 8:34 pm
IMO B

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by rohangupta83 » Wed Oct 15, 2008 10:22 pm
imo B

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by cramya » Fri Nov 07, 2008 6:26 pm
Aj,
If u can show a reason why the oil exports wont increase even though more oil will be available then that would be the right answer.

Answer B exactly does this by showing that with the increase in production of oil there will be an increase in usage of this oil by the country's increasing automobiles.

Hence it would be premature to conclude (we dont know it might increase or the increasing automobiles may use so much that the export can even decrease or stay the same; we dont know)

Hope this helps!

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by peter.p.81 » Wed May 11, 2016 3:10 am
It seems to me that the right answer is B