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country’s ability to be competitive - OG10

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country’s ability to be competitive - OG10

by venmic » Sun Sep 18, 2011 8:45 pm
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in
the international marketplace. Both are required simultaneously since standards of living can rise because of
growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.


If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


can someone please explain how to approach this one
the premise
assmtion and conclusion

Thanks
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by Geva@EconomistGMAT » Sun Sep 18, 2011 9:23 pm
venmic wrote:Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in
the international marketplace. Both are required simultaneously since standards of living can rise because of
growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.


If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


can someone please explain how to approach this one
the premise
assmtion and conclusion

Thanks
All of that isn't really necessary, as this isn't a standard strengthen/weaken/assumption question, but more of an inference/application question.

The argument states that A and B alone are not enough to establish a country's ability to compete: both are requires simultaneously (because of economic BS that we don't really need to understand).
The question then asks what is a proper test of a country's ability to compete. We've just been told that in order to compete, it needs A and B simultaneously (A = rising standard of living; B=balanced trade). So that's what the right answer should hold - both A and B.

Look at the answer choices: only answer choice A fits. It is literally that simple. The key to this question is not to get dragged too much into the detail, but look at the structure of the argument, and what you are required to do.
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by GmatKiss » Mon Sep 19, 2011 2:53 am
Geva@MasterGMAT wrote:
venmic wrote:Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in
the international marketplace. Both are required simultaneously since standards of living can rise because of
growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.


If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


can someone please explain how to approach this one
the premise
assmtion and conclusion

Thanks
All of that isn't really necessary, as this isn't a standard strengthen/weaken/assumption question, but more of an inference/application question.

The argument states that A and B alone are not enough to establish a country's ability to compete: both are requires simultaneously (because of economic BS that we don't really need to understand).
The question then asks what is a proper test of a country's ability to compete. We've just been told that in order to compete, it needs A and B simultaneously (A = rising standard of living; B=balanced trade). So that's what the right answer should hold - both A and B.

Look at the answer choices: only answer choice A fits. It is literally that simple. The key to this question is not to get dragged too much into the detail, but look at the structure of the argument, and what you are required to do.
Hi Geva,

Could you please explain how E is eliminated!

TIA,
GK
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by Geva@EconomistGMAT » Mon Sep 19, 2011 3:01 am
@GMATkiss: because we need both a RISING standard of living and a BALANCED trade, not a standard that remains CONSTANT and rising DEFICITS..
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by navami » Mon Sep 19, 2011 11:30 am
IMO A
This time no looking back!!!
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by venmic » Tue Sep 20, 2011 7:30 pm
interesting... thanks.. Appreciate your help
Geva@MasterGMAT wrote:
venmic wrote:Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in
the international marketplace. Both are required simultaneously since standards of living can rise because of
growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.


If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


can someone please explain how to approach this one
the premise
assmtion and conclusion

Thanks
All of that isn't really necessary, as this isn't a standard strengthen/weaken/assumption question, but more of an inference/application question.

The argument states that A and B alone are not enough to establish a country's ability to compete: both are requires simultaneously (because of economic BS that we don't really need to understand).
The question then asks what is a proper test of a country's ability to compete. We've just been told that in order to compete, it needs A and B simultaneously (A = rising standard of living; B=balanced trade). So that's what the right answer should hold - both A and B.

Look at the answer choices: only answer choice A fits. It is literally that simple. The key to this question is not to get dragged too much into the detail, but look at the structure of the argument, and what you are required to do.
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by artistocrat » Wed Sep 21, 2011 4:04 pm
Geva@MasterGMAT wrote:
venmic wrote:Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in
the international marketplace. Both are required simultaneously since standards of living can rise because of
growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.


If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise.


can someone please explain how to approach this one
the premise
assmtion and conclusion

Thanks
All of that isn't really necessary, as this isn't a standard strengthen/weaken/assumption question, but more of an inference/application question.

The argument states that A and B alone are not enough to establish a country's ability to compete: both are requires simultaneously (because of economic BS that we don't really need to understand).
The question then asks what is a proper test of a country's ability to compete. We've just been told that in order to compete, it needs A and B simultaneously (A = rising standard of living; B=balanced trade). So that's what the right answer should hold - both A and B.

Look at the answer choices: only answer choice A fits. It is literally that simple. The key to this question is not to get dragged too much into the detail, but look at the structure of the argument, and what you are required to do.
The very first sentence of the stimulus reveals the answer: "Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete". In other words, BOTH are required. Then the answer is easy -just parrot the stimulus. BOTH "a rising standard of living" AND "balanced trade" "establishes a country's ability to compete". Clearly A.
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by amit2k9 » Wed Sep 21, 2011 9:02 pm
std of living falls - eliminated options B and D go.
trade deficit should not be increased- C goes.

between A and E,stad of living constant isn't the goal. E goes.

A prevails.
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