A developing country can substantially

Answer choices

1. A

   Too Strong: will not contribute6% picked this

   Once a developing country has at least one business in a modern industry, further investment in that industry will not contribute

   This sounds way more harsh than anything we read: As soon as a developing country has one business entering [the solar power industry], investing any more in [solar power] would not contribute to economic growth? That's crazy strong. Maybe it wouldn't contribute to substantial increases in growth, but not contribute at all?

   6%
2. B

   Out of Scope: greater competition9% picked this

   In developing countries, there is greater competition within modern industries than

   This introduces an unknown comparison between modern and traditional industries. We were told that if a new modern industry succeeds, there will potentially be competing investors in that modern industry. But we were told nothing about competition within traditional industries, so we have no means to make any comparison.

   9%
3. C

   Correct71% picked this

   A developing country can increase its prospects for economic growth by providing added incentive for investment in modern industries that have

   Why this is right

   This Reconciles the Pivot, balancing the idea that developing countries would benefit economically from investment in 'new' modern industries, but investors will see that investment as unpalatably risky. For investors, the risk seems to outweigh the incentive. The investment in a previously un-pursued modern industry is "very risky", while there is "little incentive" to do it. So it's supportable to say that if a developing country can tip the scales a little bit more by adding more incentive for investment in these new modern industries, then more investors might be willing to take on the risk (and if they succeed, it would help the developing country's economic growth). It feels weird to be bringing in this new idea of the developing country adding incentive, but it seems like a plausible takeaway given what we were told about the current imbalance between risk and reward.

   Skill tested: Most Supported · how this choice captures the argument's function is the move to repeat next time.

   71%
4. D

   Too Strong: will not / unless8% picked this

   A developing country will not experience economic growth unless its businesspeople invest

   The first sentence is saying that a developing country can experience growth from investment in modern industries, but this answer choice is acting like it said that a developing country can only experience growth from investment in modern industries.

   8%
5. E

   Too Strong6% picked this

   Investments in a modern industry in a developing country carry little risk as long as the country has at least one

   Too Strong: little risk Out of Scope: established industries This answer is essentially selling us an "illegal light switch" idea. Because the passage told us that "within new industries that no one's yet pursued, investment is very risky", it's acting like we can infer that "within industries where at least one has pursued, investment carries little risk". We don't know anything from this paragraph about industries that already have at least one established business. And it's possible that investments in them are also very risky, but the potential incentives are so high that investors are willing to take on those risks.

   6%