GMAT Practice Question Set #41 (Question 121-123)

Critical Reasoning Question #123: Profits in the Amazon Forest  
Time 0 0 : 0 0 : 0 0

Suncorp, a new corporation with limited funds, has been clearing large sections of the tropical Amazon forest for cattle ranching. This practice continues even though greater profits can be made from rubber tapping, which does not destroy the forest, than from cattle ranching, which does destroy the forest.

Which of the following, if true, most helps to explain why Suncorp has been pursuing the less profitable of the two economic activities mentioned above?

(A)

The soil of the Amazon forest is very rich in nutrients that are important in the development of grazing lands.

(B)

Cattle-ranching operations that are located in tropical climates are more profitable than cattle-ranching operations that are located in cold-weather climates.

(C)

In certain districts, profits made from cattle ranching are more heavily taxed than profits made from any other industry.

(D)

Some of the cattle that are raised on land cleared in the Amazon are killed by wildcats.

(E)

The amount of money required to begin a rubber-tapping operation is twice as high as the amount needed to begin a cattle ranch.

GMATTM is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.