• NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    Hundreds of Questions Highly Detailed Reporting Expert Explanations TAKE A FREE GMAT QUIZ
  • 7 CATs FREE!
    If you earn 100 Forum Points

    Engage in the Beat The GMAT forums to earn
    100 points for $49 worth of Veritas practice GMATs FREE

    Veritas Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

Twelve years ago and again five years ago, there were extend

This topic has 8 member replies

Twelve years ago and again five years ago, there were extend

Post
Twelve years ago and again five years ago, there were extended periods when the Darfir Republic's currency,the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on world markets, and Darfir's exports were up substantially. Now some politicians are saying that, in order to cause another similarly sized increase in exports, the government should allow the pundra to become weak again.

Which of the following, if true,provides the government with the strongest grounds to doubt that the politicians' recommendation, if followed, will achieve its aim?

A. Several of the politicians now recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness.
B. After several decades of operating well below peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
C. The economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant.
D. Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies.
E. A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.

OA: will be posted later. Please discuss each answer choice in detail

  • +1 Upvote Post
  • Quote
  • Flag
Legendary Member
Joined
28 Jan 2010
Posted:
965 messages
Followed by:
34 members
Upvotes:
156
Test Date:
9th Feb 2010
GMAT Score:
720
Facebook Logo
Post
I go for E.

This is a cause and effect reasoning Error.
Weak Pundra caused increase in exports (Which was caused by the products being a bargain).

So we need another reason that will help the exports.
That is provided by answer choice E.

A. Several of the politicians now recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness. - no reason to doubt it will fail this time.
B. After several decades of operating well below peak capacity, Darfir's manufacturing sector is now operating at near-peak levels. - still does not explain how to increase exports.
C. The economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant. - target is to improve exports.
D. Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies. irrelevant to discuss their currencies.

_________________
Vineesh,
Just telling you what I know and think. I am not the expert. Smile

  • +1 Upvote Post
  • Quote
  • Flag
Legendary Member Default Avatar
Joined
19 Jan 2010
Posted:
586 messages
Followed by:
5 members
Upvotes:
31
Test Date:
27th July 2011
GMAT Score:
730
Post
aspirant2011 wrote:
Twelve years ago and again five years ago, there were extended periods when the Darfir Republic's currency,the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on world markets, and Darfir's exports were up substantially. Now some politicians are saying that, in order to cause another similarly sized increase in exports, the government should allow the pundra to become weak again.

Which of the following, if true,provides the government with the strongest grounds to doubt that the politicians' recommendation, if followed, will achieve its aim?

A. Several of the politicians now recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness.
this if any strethtnes the argument tht poloticians made a similar comment below and economy did improve
B. After several decades of operating well below peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
this says tht the economy is alreayd at near peak levels,so no matter wht measures are taken (weakening of pundra) it will have no effect on the economy.correct answer.
C. The economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant.
strenghtens the claim of politicnas
D. Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies.
doesnt make us to doubt the plotician sstatemnt.they have stable currencies and still competing, may be by declinign the currency dafir can become more comeptitive? we dnt knw
E. A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.
this gives an alternate plan to make darfirs products a bargain BUT dnt forget wht we are out to prove, we need to show ploticians argument is not strong, there may well be other routes via which the economy can be strong, we are not bothered.

B offers that explanation, already full economy so no point implemeting naythng.

OA: will be posted later. Please discuss each answer choice in detail

  • +1 Upvote Post
  • Quote
  • Flag
Newbie | Next Rank: 10 Posts Default Avatar
Joined
15 Apr 2011
Posted:
4 messages
Upvotes:
2
Post
Thanks for the explanation

  • +1 Upvote Post
  • Quote
  • Flag
Legendary Member Default Avatar
Joined
30 Nov 2009
Posted:
768 messages
Followed by:
7 members
Upvotes:
21
Post
@vineeshp : If you see reasoning used carefully, politicains didn't say that it is the only reason to raise export. Instead , he has assumed that a situation that worked in the past , wll work in the present or in the future. What if there is a circumstance that does not allow so to happen the same way ?

Go ahead and bring down the currency.. demand will increase.. then what.. all plants are running at their peak capacity.

If E wer used by an oppsotion politician Smile , the politician will be quick to say; hey why not to use both and have cumulative effect.

  • +1 Upvote Post
  • Quote
  • Flag
Legendary Member Default Avatar
Joined
28 Jan 2011
Posted:
1574 messages
Followed by:
13 members
Upvotes:
88
Post
thanks rohu, yup the answer is B ..........

  • +1 Upvote Post
  • Quote
  • Flag
Master | Next Rank: 500 Posts
Joined
18 Jun 2010
Posted:
230 messages
Followed by:
2 members
Upvotes:
1
Post
rohu27 wrote:
aspirant2011 wrote:
Twelve years ago and again five years ago, there were extended periods when the Darfir Republic's currency,the pundra, was weak: its value was unusually low relative to the world's most stable currencies. Both times a weak pundra made Darfir's manufactured products a bargain on world markets, and Darfir's exports were up substantially. Now some politicians are saying that, in order to cause another similarly sized increase in exports, the government should allow the pundra to become weak again.

Which of the following, if true,provides the government with the strongest grounds to doubt that the politicians' recommendation, if followed, will achieve its aim?

A. Several of the politicians now recommending that the pundra be allowed to become weak made that same recommendation before each of the last two periods of currency weakness.
this if any strethtnes the argument tht poloticians made a similar comment below and economy did improve
B. After several decades of operating well below peak capacity, Darfir's manufacturing sector is now operating at near-peak levels.
this says tht the economy is alreayd at near peak levels,so no matter wht measures are taken (weakening of pundra) it will have no effect on the economy.correct answer.
C. The economy of a country experiencing a rise in exports will become healthier only if the country's currency is strong or the rise in exports is significant.
strenghtens the claim of politicnas
D. Those countries whose manufactured products compete with Darfir's on the world market all currently have stable currencies.
doesnt make us to doubt the plotician sstatemnt.they have stable currencies and still competing, may be by declinign the currency dafir can become more comeptitive? we dnt knw
E. A sharp improvement in the efficiency of Darfir's manufacturing plants would make Darfir's products a bargain on world markets even without any weakening of the pundra relative to other currencies.
this gives an alternate plan to make darfirs products a bargain BUT dnt forget wht we are out to prove, we need to show ploticians argument is not strong, there may well be other routes via which the economy can be strong, we are not bothered.

B offers that explanation, already full economy so no point implemeting naythng.

OA: will be posted later. Please discuss each answer choice in detail
in weakening we are told that:

d. Even if the choice introduces new information, you need to accept them as correct choices, if they are weakening the conclusion.

so why E is incorrect.Please explain

  • +1 Upvote Post
  • Quote
  • Flag
Junior | Next Rank: 30 Posts Default Avatar
Joined
01 Jul 2015
Posted:
18 messages
Upvotes:
1
GMAT Score:
720
Post
Hi,

Why do we have to assume that to satisfy the demand for exports we need to manufacture more ?
I realised that supply might still be more as compared to the demand and thus eliminated answer choice B
Where did I go wrong here ?

_________________
Please take a moment to hit Thanks if you like my post. Smile

  • +1 Upvote Post
  • Quote
  • Flag
Senior | Next Rank: 100 Posts Default Avatar
Joined
12 Jan 2019
Posted:
39 messages
Post
The argument states that during periods of weak currency (lower value vs other countries), X experience a sharp INCREASE in exports. Politicians are suggesting that the country intentionally weaken the currency so X can experience a similar INCREASE in exports.

The correct answer to this 'weaken' question needs to ATTACK a necessary assumption to the politicians plan.

A. If anything, this answer strengthens the position of the politicians
B. This answer choice (correct) states that manufacturing is already at peak levels. That means that even if the currency become devalued and demand for products increases, X would not be able to increase manufacturing to meet that demand. The conclusion of the politicians is completely weakened (if not destroyed). [Note: the assumption you are attacking here is as follows: Politicians are assuming that X is able to increase production to meet the increase in demand that would result from a devalued currency.]
C. Out of scope answer
D. Out of scope (or perhaps even a little strengthening)
E. Out of scope
Hence, B is the answer.

  • +1 Upvote Post
  • Quote
  • Flag
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • The Princeton Review
    FREE GMAT Exam
    Know how you'd score today for $0

    Available with Beat the GMAT members only code

    MORE DETAILS
    The Princeton Review
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep

Top First Responders*

1 Ian Stewart 50 first replies
2 Brent@GMATPrepNow 37 first replies
3 Jay@ManhattanReview 33 first replies
4 GMATGuruNY 29 first replies
5 ceilidh.erickson 14 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

Most Active Experts

1 image description Scott@TargetTestPrep

Target Test Prep

209 posts
2 image description Max@Math Revolution

Math Revolution

92 posts
3 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

79 posts
4 image description Ian Stewart

GMATiX Teacher

57 posts
5 image description GMATGuruNY

The Princeton Review Teacher

49 posts
See More Top Beat The GMAT Experts