Question

In 1980, Country A had a per capita gross domesticproduct (GDP) that was $\$$5,000 higher than that ofthe European Economic Community. By 1990, the difference, when adjusted for inflation, had increasedto $\$$6,000. Since a rising per capita GDP indicates arising average standard of living, the averagestandard of living in Country A must have risenbetween 1980 and 1990.

Which one of the following is an assumption onwhich the argument depends?

• A. Between 1980 and 1990, Country A and theEuropean Economic Communityexperienced the same percentage increase inpopulation.
• B. Between 1980 and 1990, the average standardof living in the European Economic Community fell.
• C. Some member countries of the EuropeanEconomic Community had, during the1980s, a higher average standard of livingthan Country A.
• D. The per capita GDP of the European Economic Community was not lower by more than 1,000 in 1990 than it had been in 1980.

Answer 1

The correct option is D

The per capita GDP of the European Economic Community was not lower by more than 1,000 in 1990 than it had been in 1980.

The author has fallen into the trap of believing that an increase in the difference between GDP's means that the actual GDP of country A has increased.

Let us look at this example.

X1= A initial-B initial

X2=A final-B final

X1<X2 is possible if

a) A final is greater than A initial or

b) B initial is greater than B final or

c) Combination of a) and b)

We can see that in case 2 and case 3 the GDP of country has not risen. The author has assumed that the GDP of EEC has not decreased. Only then we can draw the conclusion that GDP of country has increased.

So the only answer option which fits this (d)