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Last year, the economic downturn affected economies throughout the world. Several million people across nations lost their jobs. Accordingly, the tourism business in the country of Daland, a popular international tourist destination, was severely affected on account of limited business from foreign tourists. However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.
Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?
  • a)
    The hotel business is one of the most profitable businesses in Daland.
  • b)
    Other businesses such as clothing and luxury products have been affected more severely than the hotel business.
  • c)
    Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.
  • d)
    One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.
  • e)
    After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.
Correct answer is option 'C'. Can you explain this answer?
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Last year, the economic downturn affected economies throughout the wor...
Argument Analysis
Pre-Thinking
Conclusion Clarification
N/A
Pre-Thinking Approach
In order to resolve this paradox between the seemingly contradictory situations, we need to find a new piece of information that shows that despite most countries still trying to recover from the recession, Daland’s tourism could have received enough business.
Potential explanations
  • Explanation 1 : What if the situation of most countries is different from the situation of the countries that contribute most to tourism in Daland?
    • Instance:  Even though most countries are recovering from recession, the countries that contribute the maximum to Daland’s tourism have fully recovered from it.
  • Explanation 2: What if domestic tourism improved and compensated for the lack of foreign tourists?
    • Instance: This year, the local population of Daland contributed the most to Daland’s tourism.
With this understanding in mind, let’s take a look at the answer choices.
 
 
Answer Choices
A
The hotel business is one of the most profitable businesses in Daland.
Incorrect - Irrelevant
This option doesn’t help in explaining the situation. The profitability of hotel business compared to other businesses isn’t relevant.
B
Other businesses such as clothing and luxury products have been affected more severely than the hotel business.
Incorrect - Irrelevant
The extent to which hotel business has been affected compared to other businesses isn’t relevant.
C
Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.
Correct
This choice is written along the lines of our pre-thinking per Explanation#2.
D
One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.
Incorrect - Irrelevant
This option doesn’t explain why hotel business is back to the earlier level in Daland when most countries are still struggling with economic recession. Also, the historical site must have always been present there and is not a new addition in the past year.
E
After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.
Incorrect - Irrelevant
This option talks about a consideration. We don’t know if the Hotel Association of Daland actually did something. Moreover, if they had acted upon it, profitability would have been negatively affected which goes against the fact that hotel business is back to its earlier level.
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Last year, the economic downturn affected economies throughout the world. Several million people across nations lost their jobs. Accordingly, the tourism business in the country of Daland, a popular international tourist destination, was severely affected on account of limited business from foreign tourists. However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. Can you explain this answer?
Question Description
Last year, the economic downturn affected economies throughout the world. Several million people across nations lost their jobs. Accordingly, the tourism business in the country of Daland, a popular international tourist destination, was severely affected on account of limited business from foreign tourists. However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Last year, the economic downturn affected economies throughout the world. Several million people across nations lost their jobs. Accordingly, the tourism business in the country of Daland, a popular international tourist destination, was severely affected on account of limited business from foreign tourists. However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Last year, the economic downturn affected economies throughout the world. Several million people across nations lost their jobs. Accordingly, the tourism business in the country of Daland, a popular international tourist destination, was severely affected on account of limited business from foreign tourists. However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. Can you explain this answer?.
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However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. 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However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. 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However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. 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However, even though most countries are still trying to recover from the recession, hoteliers in Daland have found that the business this year is back to its original form.Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the hotel business?a)The hotel business is one of the most profitable businesses in Daland.b)Other businesses such as clothing and luxury products have been affected more severely than the hotel business.c)Most business sectors in Daland were affected by the recession only this year and hence many locals who typically travel to foreign countries chose to visit local destinations.d)One of the historical sites in Daland features in the World Heritage List of the International Archaeological Society.e)After suffering a setback last year, the Hotel Association of Daland considered decreasing the tariff rates to such a level that most hotels would have barely reached the break-even point.Correct answer is option 'C'. 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