The value of the United States dollar relative to major foreign currencies decreased between 1980 and 1986. Since the decrease made American goods cheaper to buy with these currencies, economists reasonably predicted that the United States exports would increase significantly. However, the total volume of United States exports during this period increased by a smaller amount than predicted.
Which of the following, if true, contributes most to an explanation of why the increase in United States exports was less than predicted?
A By 1980, certain country that previously had had insufficient gross income to import goods from the United States in substantial quantities had begun to do so.
B The number of United States companies exporting their goods was greater in the mid-1980s than it was in the late 1970s.
C Although the value of the dollar did not decrease between 1986 and 1988, volume of United States exports increased slightly during that period.
D Between 1980 and 1986, the quality of manufactured goods exported by the United States was comparable to similar goods manufactured in countries to which these exports were marketed.
E Since the early 1980s, newly industrialized nations producing high-quality goods at low cost have emerged as competitors in the United States export market.
Which of the following most logically completes the passage?
The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where several stops will be added. Since the bus will pick up passengers making local trips on Main Street in addition to its Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s overall revenue, because _______.
A the fare for local trip on Main Street is less than fare for trip from Metroville to Crowestown
B the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C local passengers picked up by Crowestown bus on Main Street would otherwise have taken other transit authority buses
D the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E the planned road repairs are expected to require several months to complete
