Syldania, the worlds largest exporter of iron ore, annually ships about 30 million tons of iron ore to other countries. Experts predict that because of a recent global increase in the production of iron ore, the export market for iron ore will shrink significantly next year. However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldanias iron ore processing plants are employed by the government.c)Bordia, the worlds second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer?

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Which of the following, if true, most helps to explain this apparent discrepancy?

a)
Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the ore
b)
All the workers at Syldania’s iron ore processing plants are employed by the government.
c)
Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.
d)
The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.
e)
The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.

Correct answer is option 'D'. Can you explain this answer?

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Test: Paradox

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Syldania, the world’s largest exporter of iron ore, annually shi...

Argument Analysis

Pre-Thinking

Conclusion Clarification

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Pre-Thinking Approach

To resolve the paradox, let’s see how we can select a scenario in which both the situations can be true without contradicting each other. To do so, we will look at the logical structure, focusing on the seemingly contradictory situations. Now the apparent paradox is that even though experts have predicted that the demand for IO will decrease significantly in the coming year, the government of Syldania, world’s largest exporter of IO, has ordered for an increase in the number of IO processing plants in the country.

Potential explanations

What if there is enough domestic demand for IO in Syladania to absorb the increase in the IO production? In such a scenario, even though the IO export market for Sylandaia may shrink, the government’s decision to increase IO plants will be reasonable.

- Instance : Local demand for IO in Syladania is expected to increase significantly the coming year.

With this understanding in mind, let's take a look at the option statements.

Answer Choices

Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the ore

Incorrect - Irrelevant

The ability to make up for loses does not explain why the country would apparently want to reach a state of excess supply.

All the workers at Syldania’s iron ore processing plants are employed by the government.

Incorrect - Irrelevant

Under which sector - private or public - the workers are employed does not help explain the paradox.

Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.

Incorrect - Irrelevant

Even if Syldania is concerned with losing its top position as an iron ore exporter, it still gives no reason to increase the number of iron ore processing plants since export market is expected to fall.

The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.

Correct

This matches the instance identified in pre-thinking and is the correct choice. It suggests that even though the increased iron-ore production may impact the export market, there will be enough demand within Syldania to absorb the product generated by the new iron-ore processing units in the country.

The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.

Incorrect - Irrelevant

Comparison with other countries with regards to the number of IO plants does not help us understand why the Syldanian government has decided to increase such plants despite an expected fall in the demand for IO in the export market.

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Syldania, the world’s largest exporter of iron ore, annually ships about 30 million tons of iron ore to other countries. Experts predict that because of a recent global increase in the production of iron ore, the export market for iron ore will shrink significantly next year. However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer?

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Syldania, the world’s largest exporter of iron ore, annually ships about 30 million tons of iron ore to other countries. Experts predict that because of a recent global increase in the production of iron ore, the export market for iron ore will shrink significantly next year. However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Syldania, the world’s largest exporter of iron ore, annually ships about 30 million tons of iron ore to other countries. Experts predict that because of a recent global increase in the production of iron ore, the export market for iron ore will shrink significantly next year. However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Syldania, the world’s largest exporter of iron ore, annually ships about 30 million tons of iron ore to other countries. Experts predict that because of a recent global increase in the production of iron ore, the export market for iron ore will shrink significantly next year. However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer?.

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However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. 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However, the Syldanian government has recently issued a directive stating that the number of iron ore processing plants in the country is to be increased.Which of the following, if true, most helps to explain this apparent discrepancy?a)Syldania can compensate for the amount of revenue that it loses from reduced sales of iron ore by increasing the selling price of the oreb)All the workers at Syldania’s iron ore processing plants are employed by the government.c)Bordia, the world’s second-largest exporter of iron ore, is soon expected to overtake Syldania in iron ore production.d)The domestic demand for iron ore and its by-products is expected to increase considerably in Syldania.e)The number of iron ore processing plants in Syldania is already greater than the number of such plants in most other countries.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.

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