GMAT Practice Question Set #38 (Question 112-114)

Critical Reasoning Question #114: Sourcing Refined Petroleum  
Time 0 0 : 0 0 : 0 0

The cost to refine petroleum in Country X is 10% less than the cost of refining petroleum in Country Y. Even after transport fees for the petroleum and tariff charges are added, it is still cheaper for an oil company to import refined petroleum from Country X to Country Y than to refine the petroleum in Country Y.

The statements above, if true, best support which of the following assertions?

(A)

Labor costs in Country X are ten percent below those in Country Y.

(B)

Refining petroleum in Country X and then importing to Country Y will eliminate ten percent of the refinery jobs in Country Y.

(C)

The tariff on petroleum imported from Country X to Country Y is less than ten percent of the cost of refining petroleum in Country Y.

(D)

The fee for importing refined petroleum from Country X to Country Y is more than ten percent of the cost of refining petroleum in Country X.

(E)

It takes ten percent less time to refine petroleum in Country X than it does in Country Y.

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.