The revival of Kranlands automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the countrys economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the countrys exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranlands automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. Can you explain this answer?

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Which of the following best explains the reason for the doubt expressed by the economists?

a)
The automobile industry does not create low-quality jobs.
b)
Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.
c)
The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.
d)
To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.
e)
Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.

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

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Test: Paradox

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The revival of Kranland’s automobile industry is being pitched a...

Argument Analysis

Pre-Thinking

Paradox Clarification

The apparent paradox is that how can the auto manufacturing companies in Kranland not add many jobs in the long run despite an increase in the exports and the corresponding increase in the manufacturing.

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.

Potential explanations

What if the auto mobile manufacturing industry in Kranland outsources many of its jobs to other countries?
What if the manufacturing companies become so efficient in their usage of workforce that an increase in production may not translate in to an increase in employment?

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

Answer Choices

The automobile industry does not create low-quality jobs.

Incorrect - Irrelevant

We are concerned about the number of jobs, not the quality of jobs. If the car industry creates a large number of high quality jobs, the economists’ doubt won’t be supported. Thus, incorrect.

Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.

Incorrect - Irrelevant

This choice talks only about one company, while economists’ doubt pertains to the entire manufacturing sector. Even if we say that their doubt could be based on data from single company, a 5% growth in employment is probably not a small growth. This still indicates that as exports will grow, so will employment. Thus, this option is also inconsistent with the conclusion.

The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.

Incorrect - Irrelevant

This does not even talk about jobs.

To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.

Correct

This is right on track. This choice implies that to succeed in the global market (exports), a company needs to produce more using the same workforce. Therefore, even if exports increase, this increase may not lead to a corresponding increase in jobs. Thus, this statement supports the economists’ doubt.

Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.

Incorrect - Irrelevant

Like option C, this also doesn’t talk about jobs. Thus, incorrect.

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The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. Can you explain this answer?

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The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.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 The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.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 The revival of Kranland’s automobile industry is being pitched as a beacon of hope in an economy that has been broadly flat for the most part of the last two years. It is being suggested that the industry can help boost the country’s economy by increasing its manufacturing output and resultant exports, and create high quality jobs. However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. Can you explain this answer?.

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However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. 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However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. 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However, many economists claim that even if automobiles companies help increase the country’s exports, they will not be a major source of new jobs over the long term.Which of the following best explains the reason for the doubt expressed by the economists?a)The automobile industry does not create low-quality jobs.b)Even though the exports of Sonic Automobiles, a manufacturing company in Kranland, grew more than 20% in the last year, its number of employees grew only by 5%.c)The automobile industry is a capital intensive industry and frequently goes through cycles of growth and recession.d)To succeed in the global manufacturing industry, a company has to be extraordinarily efficient, requiring the use of the same workforce for more production.e)Ranland’s automobile companies are financially well off than their Kranlandian peers and can cut down their prices to gain market share.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.

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