country’s ability to be competitive - OG10

[venmic]

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

[Geva@EconomistGMAT]

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.

[GmatKiss]

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

[Geva@EconomistGMAT]

@GMATkiss: because we need both a RISING standard of living and a BALANCED trade, not a standard that remains CONSTANT and rising DEFICITS..

[navami]

IMO A

[venmic]

interesting... thanks.. Appreciate your help

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.

[artistocrat]

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.

[amit2k9]

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.