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Question: Exports of United States wood pulp will rise considerably during this year. The reason for the rise is that the falling value of the dollar will make it cheaper for paper manufacturers in Japan and Western Europe to buy American wood pulp than to get it from any other source.
Which of the following is an assumption made in drawing the conclusion above?
(A) Factory output of paper products in Japan and Western Europe will increase sharply during this year.
(B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers.
(C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor.
(D) Demand for paper products made in Japan and Western Europe will not increase sharply during this year.
(E) Production of wood pulp by United States companies will not increase sharply during this year.
Answer: B
Explanation:
(A) Factory output of paper products in Japan and Western Europe will increase sharply during this year. The given statement is incorrect because even if factory output of paper products did not increase this year, manufacturers in Japan and Europe might import more U.S. wood pulp this year as raw materials for next year's production.
(B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers. The given statement is correct because the predicted increase would likely not occur unless U.S. wood pulp met the manufacturers' minimum-quality standards.
(C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor. The given statement is incorrect because it is not important to assume that cost is the sole factor.
(D) Demand for paper products made in Japan and Western Europe will not increase sharply during this year. The given statement is incorrect because it is not assumed that no such sharp increase will occur this year. In fact, if such an increase were to occur, it would be even more likely that exports of U.S. wood pulp would increase this year if U.S. wood pulp became internationally more competitive on price this year.
(E) Production of wood pulp by United States companies will not increase sharply during this year. The given statement is incorrect because the prediction that U.S. wood-pulp exports will increase, there is no reason to assume no sharp increase in U.S. wood pulp production during this year.
“Exports of United States wood pulp will rise considerably during this”- 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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