In free-trade countries such as the United States, if there is a coal-supply disturbance which increases international coal prices, domestic coal prices will also be affected whether such free-trade countries import some or none of their coal.

Which of the following conclusions is best supported by the argument?

Answer Choices

Correct answer marked below

When there is a disturbance in the international coal supply, free-trade countries’ domestic coal producers cannot participate in international coal markets.

As long as a free-trade country has sufficient domestic supply to meet domestic demand, domestic coal prices are barely affected, if at all, by international coal-supply disturbances.

Even if a free-trade country usually sells most of its domestically produced coal within its borders, that country remains part of the international market for coal.

Correct

Even if international coal prices spike, free-trade countries that export little or no domestically produced coal can keep domestic coal prices constant.

When there is a disturbance in the international coal supply, non-free-trade countries’ domestic coal producers are affected by international coal markets.

See the full step-by-step explanation

You can see the correct answer above. Sign in for free to unlock the complete worked solution.

Track your performance and improve

Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.

Start for free Sign in

Explanation

Unlock the full explanation

Create a free account to reveal the correct answer, see the step-by-step explanation, and start tracking your GMAT progress.

Create free account Sign in

Comments

No comments yet

Be the first to share your thoughts and help others understand it better.

What this question tests

What it tests

Whether you can identify the argument's main conclusion as opposed to a supporting premise.

Common trap

Selecting a restatement of a premise or a side point instead of the central conclusion.