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PrepTest 73, Logical Reasoning 1, Question 23


Question 23. When a question asks what the information most strongly supports than you are doing an inference question. On an inference question, your job is to take stock of the information you've been given, and then prove one of the answer choice's true on the basis of that information.

So let's start with the facts that we have. The first thing that we're told is that a developing country can increase its economic growth substantially if people are willing to invest in industries that haven't already been invested in. The second fact we get as a next sentence being the first to invest in industry is very risky.

They further explain that risk in the next sentence. Business people have little incentive to take the risk because if the business succeeds, many other people are going to invest in the same industry and the competition is going to cut their profits. So three facts notice that the facts are not very definite. It's just a bunch of cans and risks and coulds.

There's nothing here that's absolutely clear cut no onlys, always', nevers. That means that the correct answer is going to have to be every bit as qualified as the information we've been given. We're really going to watch out for extreme answer choices because we don't have any extreme information to base an extreme influence off of. So let's go answer choice by answer choice and find the thing that we can prove answer choice A says that wants developing country has at least one business in a modern industry.

Further investment in that industry will not contribute to the country's economic growth. This answer goes way too far. We know that if people invest in industries that don't already have investment that has the potential to increase the economic growth of the country.

We know that that initial investment is useful. But we don't know that that's the only thing that's useful that once you're past the initial investment, everything's over. So A goes too far it's not our answer. Look at answer choice B. In developing countries, there's a greater competition within modern industries than within traditional industries.

We don't have any information about traditional industries in this stimulus. We know something about modern industries or new industries. We don't know anything about traditional industries, so B can't be our answer. Answer choice C, a developing country can increase its prospects for economic growth by providing added incentive for investment in modern industries that have not yet been pursued there.

Now this is our answer, and notice how qualified it is. They're not saying that the developing country will increase its economic growth, just that it can increase its prospects for economic growth. And sure, right now there is little incentive for business people who take the risk If you could provide them some incentive, then maybe they will invest. And if they invest, we know that that can increase economic growth.

Answer choice C fits with what we've been told. So it is our answer. So what's wrong with the other answers? Well answer choice D goes too far again. We know that investment can help grow the economy not that is required for the economy to grow and this says that the economy won't grow unless people invest.

So it goes too far and then answer choice E goes too far and it's kind of confusing. The information we've been given so far is only about industries that haven't yet had investment, not industries that have exactly one other business and them or at least one other business and them. It's about industries where investment hasn't happened not in industries where there's just one business.

We don't know anything about these kinds of industries. So answer choice E, we can't say anything about it's not our answer. Answer choice C was what we could prove.

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