The average hourly wage of television assemblers in Vernland has long been significantly lower than that in neighboring Borodia. Since...

GMAT Critical Reasoning : (CR) Questions

Source: Official Guide

Critical Reasoning

Assumption

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The average hourly wage of television assemblers in Vernland has long been significantly lower than that in neighboring Borodia. Since Borodia dropped all tariffs on Vernlandian televisions three years ago, the number of televisions sold annually in Borodia has not changed. However, recent statistics show a drop in the number of television assemblers in Borodia. Therefore, updated trade statistics will probably indicate that the number of televisions Borodia imports annually from Vernland has increased.

Which of the following is an assumption on which the argument depends?

The number of television assemblers in Vernland has increased by at least as much as the number of television assemblers in Borodia has decreased.

Televisions assembled in Vernland have features that televisions assembled in Borodia do not have.

The average number of hours it takes a Borodian television assembler to assemble a television has not decreased significantly during the past three years.

The number of televisions assembled annually in Vernland has increased significantly during the past three years.

The difference between the hourly wage of television assemblers in Vernland and the hourly wage of television assemblers in Borodia is likely to decrease in the next few years.

Solution

Passage Analysis:

Text from Passage	Analysis
The average hourly wage of television assemblers in Vernland has long been significantly lower than that in neighboring Borodia.	What it says: Vernland workers get paid way less than Borodia workers for the same TV assembly job What it does: Sets up a key economic difference between the two countries What it is: Background fact Visualization: Vernland workers: $15/hour, Borodia workers: $25/hour
Since Borodia dropped all tariffs on Vernlandian televisions three years ago, the number of televisions sold annually in Borodia has not changed.	What it says: Even though Vernland TVs became cheaper to import (no tariffs), total TV sales in Borodia stayed the same What it does: Introduces a policy change and its surprising result - connects to the wage difference by showing trade became easier What it is: Policy fact and market outcome Visualization: 3 years ago: Vernland TV price = $300 + $50 tariff = $350. Now: Vernland TV price = $300 (no tariff). Total TVs sold in Borodia: 10,000 then, 10,000 now
However, recent statistics show a drop in the number of television assemblers in Borodia.	What it says: Fewer people are working in TV assembly jobs in Borodia now What it does: Adds a contrasting piece of evidence ("However") that seems puzzling given stable sales - builds on previous facts What it is: Recent statistical finding Visualization: Borodia TV assemblers: 1,000 workers before → 700 workers now
Therefore, updated trade statistics will probably indicate that the number of televisions Borodia imports annually from Vernland has increased.	What it says: The author concludes that Borodia is probably importing more TVs from Vernland What it does: Draws a conclusion by connecting all the previous facts together What it is: Author's conclusion Visualization: Vernland TV imports to Borodia: 2,000 TVs before → probably 5,000 TVs now

Argument Flow:

The argument starts with background info about wage differences, then presents what seems like a puzzle: even with easier trade, TV sales stayed flat but workers decreased. The author then connects these dots to conclude that imports increased.

Main Conclusion:

Borodia is probably importing more televisions from Vernland now than before the tariffs were dropped.

Logical Structure:

The author uses economic reasoning: if total TV sales stayed the same but fewer local workers are making TVs, then the missing TVs must be coming from somewhere else - specifically from Vernland, since their cheaper labor and the removed tariffs make their TVs more attractive to import.

Prethinking:

Question type:

Assumption - We need to find what the argument must assume to be true for the conclusion to logically follow from the premises

Precision of Claims

The argument makes specific quantity claims about TV sales staying constant, assembler jobs decreasing, and imports probably increasing. We need assumptions that bridge these facts to support the conclusion

Strategy

The author concludes that Vernland TV imports to Borodia probably increased based on: lower wages in Vernland, no tariffs, constant total TV sales, and fewer assemblers in Borodia. We need to identify what must be true to connect these dots. The logic seems to be: if total sales stayed the same but fewer people are making TVs in Borodia, then more TVs must be coming from somewhere else (Vernland). Let's find assumptions this reasoning depends on

Answer Choices Explained

The number of television assemblers in Vernland has increased by at least as much as the number of television assemblers in Borodia has decreased.

This focuses on what's happening in Vernland's workforce, but the argument doesn't need this to be true. Even if Vernland's assembler numbers stayed the same or even decreased, they could still be exporting more TVs to Borodia due to the tariff removal and wage advantages. The argument only needs Borodia to be producing fewer TVs domestically, not for Vernland to have more workers.

Televisions assembled in Vernland have features that televisions assembled in Borodia do not have.

This suggests product differentiation, but the argument is based purely on economic factors - lower wages and removed tariffs. The argument doesn't require any quality or feature differences between the TVs. The conclusion is about cost advantages, not product superiority.

The average number of hours it takes a Borodian television assembler to assemble a television has not decreased significantly during the past three years.

This is essential to the argument's logic. If Borodian assemblers became significantly more efficient (taking fewer hours per TV), then fewer assemblers could still produce the same number of televisions. This would break the connection between 'fewer assemblers' and 'less domestic production,' undermining the conclusion that imports must have increased. The argument absolutely depends on this assumption.

The number of televisions assembled annually in Vernland has increased significantly during the past three years.

While this might support the conclusion, it's not necessary for the argument. Even if Vernland's total production stayed the same, they could still be exporting more to Borodia (perhaps at the expense of other markets or domestic sales). The argument only requires that Vernland can supply more TVs to Borodia, not that their overall production increased.

The difference between the hourly wage of television assemblers in Vernland and the hourly wage of television assemblers in Borodia is likely to decrease in the next few years.

This is about future wage trends, but the argument is about what has already happened over the past three years. The conclusion is about current import levels, not future wage convergence. This assumption is irrelevant to the argument's reasoning.

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