The cost of manufacturing tractors in Korea is twenty percent less than the cost of manufacturing tractors in Germany. Even after transportation fees and import taxes are added, it is still cheaper to import tractors from Korea to Germany than to produce tractors in Germany. Which of the following assertions is best supported by this information?

general knowledge math & puzzles

  1. Labor costs in Korea are twenty  percent below those in Germany.

  2. Importing tractors into Germany will eliminate twenty  percent of the manufacturing jobs in Germany.

  3. The costs of transporting a tractor  from Korea to Germany is more than twenty  percent of the cost of manufacturing the tractor in Korea.

  4. The import taxes on a tractor  imported from Korea to Germany is less than twenty  percent of the cost of manufacturing the tractor in Germany.

Show answer
Correct Option: D
Explanation:

To solve this question, the user needs to understand the information provided and make logical inferences based on that information.

The passage states that the cost of manufacturing tractors in Korea is twenty percent less than the cost of manufacturing tractors in Germany. Even after transportation fees and import taxes are added, it is still cheaper to import tractors from Korea to Germany than to produce tractors in Germany.

Now let's go through each option and explain why it is right or wrong:

A. Labor costs in Korea are twenty percent below those in Germany. There is no information given about the specific percentage difference in labor costs between Korea and Germany. The passage only states that the cost of manufacturing tractors in Korea is twenty percent less than in Germany. This does not necessarily mean that labor costs are twenty percent below those in Germany. Therefore, this option is not supported by the information given.

B. Importing tractors into Germany will eliminate twenty percent of the manufacturing jobs in Germany. There is no information given about the potential impact on manufacturing jobs in Germany. The passage only states that it is cheaper to import tractors from Korea to Germany, but it does not provide any information about the impact on jobs. Therefore, this option is not supported by the information given.

C. The costs of transporting a tractor from Korea to Germany is more than twenty percent of the cost of manufacturing the tractor in Korea. This option is not supported by the information given. The passage mentions that even after transportation fees and import taxes are added, it is still cheaper to import tractors from Korea to Germany. This suggests that the costs of transporting the tractors are not more than twenty percent of the cost of manufacturing them in Korea. Therefore, this option is not supported by the information given.

D. The import taxes on a tractor imported from Korea to Germany is less than twenty percent of the cost of manufacturing the tractor in Germany. This option is supported by the information given. The passage states that even after transportation fees and import taxes are added, it is still cheaper to import tractors from Korea to Germany. This implies that the import taxes on the tractors are less than twenty percent of the cost of manufacturing them in Germany. Therefore, this option is supported by the information given.

The Answer is: D

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