Question: Economist: A country’s rapid emergence from an economic recession requires substantial new investment in that country’s economy. Since people’s confidence in the economic policies of their country is a precondition for any new investment, countries that put collective goals before individuals’ goals cannot emerge quickly from an economic recession.
Which one of the following, if assumed, enables the economist’s conclusion to be properly drawn?
(A) No new investment occurs in any country that does not emerge quickly from an economic recession.
(B) Recessions in countries that put collective goals before individuals’ goals tend not to affect the country’s people’s support for their government’s policies.
(C) If the people in a country that puts individuals’ goals first are willing to make new investments in their country’s economy, their country will emerge quickly from an economic recession.
(D) People in countries that put collective goals before individuals’ goals lack confidence in the economic policies of their countries.
(E) A country’s economic policies are the most significant factor determining whether that country’s economy will experience a recession.
Explanation
(A) No new investment occurs in any country that does not emerge quickly from an economic recession. The given statement is incorrect because even if you have new investment, you could have no quick emergence from a recession. So, it is possible to have new investment in a country which doesn't quickly emerge from a recession.
(B) Recessions in countries that put collective goals before individuals’ goals tend not to affect the country’s people’s support for their government’s policies. The given statement is incorrect because it is observed that collective over individual goals are linked to poor people's confidence.
(C) If the people in a country that puts individuals’ goals first are willing to make new investments in their country’s economy, their country will emerge quickly from an economic recession. The given statement is incorrect because new investments are necessary. So, it is possible to have new investments and not quickly emergence.
(D) People in countries that put collective goals before individuals’ goals lack confidence in the economic policies of their countries. The given statement is correct because this information is the same as given in (C) but without making errors of necessary conditions.
(E) A country’s economic policies are the most significant factor determining whether that country’s economy will experience a recession. The given statement is incorrect because there are many other factors to be considered.
“Economist: A country’s rapid emergence from an economic recession”- is a question of critical reasoning in a section of GMAT Verbal Reasoning. It examines the logical reasoning of the candidate in the test. The Critical Reasoning question type is used to measure critical business skills. GMAT Critical Reasoning questions assess a distinct set of qualities associated with logic. The students preparing for the GMAT will experience the argument analysis of Critical Reasoning for the first time to substantiate their logic.
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