Lesson: Paradox Questions

Comment on Paradox Questions

going to take GMAT next week!! Thank you for your lessons. Keep on working:D

Hi Brent, below is one of the paradox questions from among those you've recommended:
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This question is part of the GMAT Club Critical Reasoning : Paradox Revision Project.

The exchange rate between the currency of Country X and that of Country Y has historically favored the currency of Country Y. Because of this, citizens of Country Y often take their vacations in Country X, where the exchange rate makes hotels and restaurants more affordable. Yet, citizens of Country Y rarely purchase clothing or electronics in Country X, despite the fact that those items are more expensive in their home country, even when sales taxes are taken into account. Which of the following, if true, would best explain the buying habits of the citizens of Country Y?

A. Citizens of Country Y prefer the fashions available in their own country.

B. Stores in Country X receive the latest fashions and technology several months after they are available in Country Y.

C. The citizens of Country X resent the buying power of the currency of Country Y.

D. The government of Country Y imposes tariffs on imported goods.

E. The currencies of Country X and Country Y are both weak compared to the currency of Country Z.

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OA is D, and everybody, including me, is confused on the forum between B & D. There are some attempted explanations, but not at all clear.

The major doubt is that both these options are relying on slight assumptions:

B: Assuming that the latest trend in fashion and technology could be important to citizens of Y. So it could alter their purchase decision.

D: The tariffs that are applied, offset the price difference including the tax, such that after accounting for it, the goods turn out to be more expensive, and this price difference could be the reason.

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Please provide a suitable explanation as to how we can assume/deduce to reach either of the above.

Thanks a lot!
gmat-admin's picture

PARADOX: If Country Y's citizens love vacationing in Country X because everything is relatively cheap in Country X, why don't Country Y's citizens buy tons of clothing and electronics in Country X?

I think B and D both help to resolve the Paradox.

However, D does a better job (in my opinion), because it addresses the issue of money. Answer choice D tells us that, when we factor in the import tariffs, the clothing/electronics purchased in Country X aren't as cheap as we think.

Answer choice B doesn't address the money discrepancy.

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