tough CR

[ArchitG318]

2/
you seem to be inferring that the manufacturers would receive a higher price from overseas buyers.
that isn't the situation here.
the situation here is this:
• the price of stuff in darfir's currency is the same as always.
• when darfir's currency is 'weak', this means that people in other countries can TRADE those other countries' currency for MORE of darfir's currency.
• so, for people who hold other countries' currency, darfir's products become 'a bargain'.
• for people dealing in darfir's currency—including the manufacturers—there is no perceptible difference.

...and, in case you're thinking 'maybe they raise the price accordingly?'—nope. in stating that the goods become 'a bargain on the world market', the argument implies that the price HAS NOT increased with respect to the domestic currency.

Hi
thanks for the response.
Perhaps I am mixing too much economics into it and probably wrongly..
This is what i thought-
lets say... Current state - 50rs.= 1 dollar
product x - 50rs. in domestic market and 1 dollar in foreign market.

now with change .... Exchange rate - 60rs =1 dollar
product x - 50rs in domestic market(unchanged) and 1 dollar in foreign market(unchanged)

Now the incentive for manufacture to sell in foreign market is that he sells product x in foreign market ,gets same 1 dollar and he converts 1 dollar to get 60rs.. So the incentive would only be in conversion of the currencies. Thus he is better of exporting..

I guess i am missing the "products become a bargain in foreign market " line ,but still ...its a general trend that when currency becomes weak products of domestic country become cheaper in foreign market and still exports increases. Exporters gain more from just the conversion of the currency .
So , i inferred that exports would increase .

And of course no other option is even closer than this one.

[RonPurewal]

three things.

1/
if you have to plug in specific numbers to make a point ON THE VERBAL SECTION, then that point is very, very unlikely to be a valid point.
(there IS a part of this exam where we plug in specific numbers to try to make specific things happen. it's not the verbal section.)

2/
if production is at a peak, then—even if everything you're saying is true—we couldn't increase exports without creating a shortage in the domestic market!
this is certainly not something you can just assume.

3/
in solving CR problems, DO NOT use ANY outside knowledge, other than everyday common sense.
if you encounter a problem about a subject you know very well, then, ironically, your knowledge is much more likely to be a liability than to be an asset. (you'll have to be meticulous about separating 'stuff YOU know' from 'stuff the passage actually says'.)

[ArchitG318]

three things.

1/
if you have to plug in specific numbers to make a point ON THE VERBAL SECTION, then that point is very, very unlikely to be a valid point.
(there IS a part of this exam where we plug in specific numbers to try to make specific things happen. it's not the verbal section.)

2/
if production is at a peak, then—even if everything you're saying is true—we couldn't increase exports without creating a shortage in the domestic market!
this is certainly not something you can just assume.

3/
in solving CR problems, DO NOT use ANY outside knowledge, other than everyday common sense.
if you encounter a problem about a subject you know very well, then, ironically, your knowledge is much more likely to be a liability than to be an asset. (you'll have to be meticulous about separating 'stuff YOU know' from 'stuff the passage actually says'.)

yeah you are right i have noticed it too..
both thinking too much and thinking too little is disastrous ...
just the adequate amount of thinking is required not more not less.

I got your point.
Thanks for the help

[RonPurewal]

you're welcome.