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

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Scrap Iron

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 1169
Joined: Sun Jul 06, 2008 2:34 amFollowed by: 1 member
Thanked: 25 times
by aj5105 » Fri Jun 26, 2009 8:24 pm
Country Y uses its scarce foreign-exchange reserves to buy scrap iron for recycling into steel. Although the steel thus produced earns more foreign exchange than it costs, that policy is foolish. Country Y’s own territory has vast deposits of iron ore, which can be mined with minimal expenditure of foreign exchange.

Which of the following, if true, provides the strongest support for Country Y’s policy of buying scrap iron abroad?

(A) The price of scrap iron on international markets rose significantly in 1987.

(B) Country Y’s foreign-exchange reserves dropped significantly in 1987.

(C) There is virtually no difference in quality between steel produced from scrap iron and that produced from iron ore.

(D) Scrap iron is now used in the production of roughly half the steel used in the world today, and experts predict that scrap iron will be used even more extensively in the future.

(E) Furnaces that process scrap iron can be built and operated in Country Y with substantially less foreign exchange than can furnaces that process iron ore.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Critical Reasoning |
Junior | Next Rank: 30 Posts
Posts: 27
Joined: Thu Apr 02, 2009 7:41 pm
Thanked: 2 times

by sasen » Fri Jun 26, 2009 10:10 pm
clear E
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 1578
Joined: Sun Dec 28, 2008 1:49 amFollowed by: 9 members
Thanked: 82 times
GMAT Score:720

by maihuna » Fri Jun 26, 2009 11:09 pm
B too is a good contender which kills an alternative explanation, but E is more direct...
Charged up again to beat the beast :)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 160
Joined: Sun May 03, 2009 1:17 amFollowed by: 1 member
Location: Rourkela/Hyderabad
Thanked: 4 times

by sanp_l » Sat Jun 27, 2009 2:16 am
E is a clear winner.
Sandy
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Master | Next Rank: 500 Posts
Posts: 472
Joined: Sun Mar 29, 2009 6:54 pm
Thanked: 56 times

by ssmiles08 » Sun Jun 28, 2009 3:29 pm
IMO E as well.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 224
Joined: Mon May 04, 2009 2:44 pm
Location: Russia, Moscow
Thanked: 10 times
GMAT Score:730

by ranell » Sun Jun 28, 2009 3:34 pm
(A) The price of scrap iron on international markets rose significantly in 1987 – if price of scrap iron on international markets rose significantly, it weakens rather than supports Country Y’s policy of buying scrap iron abroad

(B) Country Y’s foreign-exchange reserves dropped significantly in 1987 – - out of scope as the argument doesn’t address the quantity of foreign-exchange reserves and if Country Y’s foreign-exchange reserves dropped, probably it worth starting mining operations on country Y’s own territory. The latter weakens rather than supports Country Y’s current policy

(C) There is virtually no difference in quality between steel produced from scrap iron and that produced from iron ore. – if there is no difference in quality between steel produced from scrap iron and that produced from iron ore, it doesn’t matter for the country which strategy to follow

(D) Scrap iron is now used in the production of roughly half the steel used in the world today, and experts predict that scrap iron will be used even more extensively in the future– out of scope as it doesn’t matter in what amount scrap iron is and will be used.

(E) Furnaces that process scrap iron can be built and operated in Country Y with substantially less foreign exchange than can furnaces that process iron ore – CORRECT as if country Y buy can scrap iron for recycling into steel on international markets and technology facilities oriented on the usage of scrap iron cost less foreign exchange than do furnaces processing only iron ore, it would be more expensive for the country to change its policy than to continue the old one. The above provides the strongest support for Country Y’s policy of buying scrap iron abroad
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 1161
Joined: Mon May 12, 2008 2:52 amFollowed by: 1 member
Location: Sydney
Thanked: 23 times

by mehravikas » Sun Jun 28, 2009 5:32 pm
IMO - E
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Wed Jul 01, 2009 7:09 pm

by pelle » Wed Jul 01, 2009 7:30 pm
When I read this question I actually thought it was D. The way I looked at it was if experts predict the use of scrap iron to increase in the future you would assume prices to go up. As a result, it would make more sense for Country Y to buy the relatively cheap scrap iron today before it gets more expensive and use their own cheaper sources later.

Whats wrong with my reasoning or am I thinking too much into it?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 116
Joined: Sun Feb 01, 2009 10:56 am

by Musicolo » Thu Jul 02, 2009 4:22 am
I like your reasoning Pelle and thats what I thought too but I would have still gone for E in the exam having acquainted myself with the GMAT type of questions. Your reasoning is very long term and strategic thinking :) :)
GMAT sometimes does not make sense but you gotta play along :)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 15
Joined: Thu Jul 19, 2012 3:05 pm
Thanked: 1 times

by bigge2win » Sun Nov 18, 2012 1:55 pm
I'm having trouble attacking this problem, even with some of the explanations. Is the conclusion in this argument on the 2nd sentence where it says "that policy is foolish"?

Can an expert provide insight on this question?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 1248
Joined: Thu Mar 29, 2012 2:57 pmFollowed by: 192 members
Location: Everywhere
Thanked: 503 times
GMAT Score:780

by Bill@VeritasPrep » Sun Nov 18, 2012 5:04 pm
bigge2win wrote:I'm having trouble attacking this problem, even with some of the explanations. Is the conclusion in this argument on the 2nd sentence where it says "that policy is foolish"?

Can an expert provide insight on this question?
Yep. When in doubt, the conclusion can be found by asking "why?" On CR questions, there will always be evidence provided in support of a conclusion.

Why is the policy foolish? Because Country Y has iron deposits, so it doesn't need to buy scrap iron.
Join Veritas Prep's 2010 Instructor of the Year, Matt Douglas for GMATT Mondays

Visit the Veritas Prep Blog

Try the FREE Veritas Prep Practice Test
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 15
Joined: Thu Jul 19, 2012 3:05 pm
Thanked: 1 times

by bigge2win » Mon Nov 19, 2012 7:01 pm
I meant I needed some more insight on the argument, not just the question I asked.

From what I read, it seems as though the policy of the country is opposed by the author and the question is asking to support the policy of the country. The conclusion says the policy is foolish, but the question is asking to find evidence that the policy is not foolish. Am I right?

What type of question is this exactly? To me, it looks like a strengthen a premise or weaken the conclusion (since a premise and the conclusion are opposing views). Or maybe it's a paradox question?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 1248
Joined: Thu Mar 29, 2012 2:57 pmFollowed by: 192 members
Location: Everywhere
Thanked: 503 times
GMAT Score:780

by Bill@VeritasPrep » Mon Nov 19, 2012 11:11 pm
It's a strengthen question, but with misdirection. They want you to focus on the author's conclusion (that buying scrap iron is foolish), but the question stem itself asks you to add support to the country's course of action.
Join Veritas Prep's 2010 Instructor of the Year, Matt Douglas for GMATT Mondays

Visit the Veritas Prep Blog

Try the FREE Veritas Prep Practice Test
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 10
Joined: Tue Nov 05, 2013 6:31 am

by tusharkhatri123 » Mon Jan 19, 2015 2:21 pm
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether my pre-assumptions are also correct:

1. Time to bring scrap iron from abroad is less than that used to mine iron ore
2. Country Y has trade negotiations with the country from whom scrap iron is being purchased.

Thanks and Regards
Tushar
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1