Ryan Motors' chief financial officer thinks that Chile would not be a good place to sell its products because its gross domestic product (GDP) is not as high as those of some other emerging markets
Which of the following assumptions does his argument rely on?
A) Chile's educational system is not as good as that of the United States.
B) Chile's infrastructure includes an extensive network of well-maintained paved roads.
C) Chile's economy has been growing for the past several years.
D) Foreign companies generally give a favorable rating to Chile as a business-friendly environment.
E) Chile's government economists use measurement systems that take into account all of the country's major economic activity.
Answer: E
Explanation: E) For Chile's reported GDP to be a good indicator of whether it would be worthwhile to do business there, its method of calculating GDP would have to adequately capture most of its major economic activity. Choice A is not required by the argument because it does not depend on any assumption about education. A driving-friendly environment (Choice B) and surging economic growth (Choice C) both strengthen the case that selling automobiles would be a viable business in Chile. Choice D tends to support the case for doing business in Chile, though it's not directly related to the issue of what the GDP is saying.
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