GMAT Critical Reasoning

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Source: OG

Level: 4

Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.

If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to

  • A balance its trade while its standard of living rises
  • B balance its trade while its standard of living falls
  • C increase trade deficits while its standard of living rises
  • D decrease trade deficits while its standard of living falls
  • E keep its standard of living constant while trade deficits rise

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