Question 7
Over the last several decades, the demand for Country Y’s auto-mobiles increased in Country X but demand for Country X’s auto-mobiles in Country Y has remained stagnant. Initially, this disparity was plausibly due to Y’s manufacturers having superior technology, which has yielded more fuel efficient cars with cheaper maintenance. However, now Country X’s cars are comparable—if not slightly superior—in these respects. What Country X’s manufacturers fail to acknowledge is that Country Y’s drivers drive on the left side of the road. Clearly, to help lessen this trade imbalance, Country X manufacturers should produce more cars with right-side steering wheels.
Which of the following is an assumption made by the argument?
Over the last several decades, the demand for Country Y’s auto-mobiles increased in Country X but demand for Country X’s auto-mobiles in Country Y has remained stagnant. Initially, this disparity was plausibly due to Y’s manufacturers having superior technology, which has yielded more fuel efficient cars with cheaper maintenance. However, now Country X’s cars are comparable—if not slightly superior—in these respects. What Country X’s manufacturers fail to acknowledge is that Country Y’s drivers drive on the left side of the road. Clearly, to help lessen this trade imbalance, Country X manufacturers should produce more cars with right-side steering wheels.
Which of the following is an assumption made by the argument?
- Reversing the trade imbalance requires making right-side steering wheels.
- If Country X makes auto-mobiles with right-side steering wheels, most consumers from Country Y will chose to purchase a car from Country X.
- If consumers from Country Y drive on the left side of the road, these consumers are less inclined to buy steering wheels found on the left-side of the car.
- Cars from Country X will continue to improve their fuel efficiency and reduce their maintenance costs.
- The government of Country Y requires all its citizens to purchase cars with right-side steering wheels.
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