Sample Critical Reasoning Question

For this question, select the best of the answer choices given.

The cost of producing radios in Country Q is ten percent less than the cost of producing radios in Country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y.

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

• (A) Labor costs in Country Q are ten percent below those in Country Y.
• (B) Importing radios from Country Q to Country Y will eliminate ten percent of the manufacturing jobs in Country Y.
• (C) The tariff on a radio imported from Country Q to Country Y is less than ten percent of the cost of manufacturing the radio in Country Y.
• (D) The fee for transporting a radio from Country Q to Country Y is more than ten percent of the cost of manufacturing the radio in Country Q.
• (E) It takes ten percent less time to manufacture a radio in Country Q than it does in Country Y.

(C)

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