by dan Mon Sep 14, 2009 5:32 pm
I think your instincts were good (to focus on the numbers). Here's an explanation that might help:
In 1980, the per capita GDP of Country A was $5,000 higher than that of the European Economic Community (EEC). In 1990, the per capita GDP of Country A was $6,000 higher than that of the EEC. The trap is to assume that Country A’s number went up. However, this is not necessarily the case. Take the following analogous example:
Candy bar consumption yesterday:
Me: 9
You: 4
Candy bar consumption today:
Me: 9
You: 3
In this case, the difference was 5 yesterday and 6 today. However, my consumption did NOT increase. Yours simply decreased.
In other words, the growth in the difference between GDP’s could be accounted for by a decrease on the part of the EEC instead of an increase on the part of Country A. The author of the argument assumes that Country A’s per capita GDP increased (leading to a rise in the standard of living).
Answer (D), the correct answer, expresses this assumption in a very subtle way. In order to say, with certainty, that Country A’s per capita GDP increased, we need to assume two things: (1) that the EEC’s per capita GDP did not decrease by exactly $1,000, and (2) that the EEC’s per capita GDP did not decrease by more than $1,000. Let’s look at both cases:
1980 per capita GDP’s:
Country A: $15,000
EEC: $10,000
1990 per capita GDP’s:
Country A: $15,000
EEC: $9,000
As we can see, if the EEC’s per capita GDP goes down by exactly $1,000 to get to a difference of $6,000, then Country A’s must stay the same (Country A does NOT increase!).
1980 per capita GDP’s:
Country A: $15,000
EEC: $10,000
1990 per capita GDP’s:
Country A: $14,999
EEC: $8,999
If the EEC’s per capita GDP decreases by more than $1,000 ($1,001 in this case), we see that Country A’s per capita GDP must go down as well in order to get a $6,000 difference. In summary, in order to conclude with certainty that Country A’s per capita GDP went up, we must assume:
(1) EEC’s did not go down by exactly $1,000.
(2) EEC’s did not go down by more than $1,000.
The correct answer need not express both of these, but each of them is required to make the argument valid. Answer (D) expresses the second assumption.
(A) is out of scope. A comparison of populations is irrelevant. Per capita GDP figures already account for any differences in population.
(B) is irrelevant. A decrease in the EEC’s standard of living tells us nothing about whether Country A’s per capita GDP went up.
(C) is out of scope. The standard of living for EEC member countries is irrelevant.
(E) is out of scope. The individual per capita GDP’s for EEC member countries tell us nothing about whether Country A’s per capita GDP went up.
Hope that helps!
dan