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Country Y uses its scarce foreign-exchange reserves to buy scrap iron for recycling into steel.

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Country Y uses its scarce foreign-exchange reserves to buy scrap iron for recycling into steel. Although the steel thus produced earns more foreign exchange than it costs, that policy is foolish . Country Y's own territory has vast deposits of iron ore, which can be mined with minimal expenditure of foreign exchange.
Which of the following, if true, provides the strongest support for Country Y's policy of buying scrap iron abroad?
(A) The price of scrap iron on international markets rose significantly in 1987.
(B) Country Y's foreign-exchange reserves dropped significantly in 1987.
(C) There is virtually no difference in quality between steel produced from scrap iron and that produced from iron ore.
(D) Scrap iron is now used inthe production of roughly halfthe steel used in theworld today, and experts predict that scrap ironwill be used even more exten sively in the future .
(E) Furnaces that process scrap iron can be built and operated in Country Ywith substantially less foreign exchange than can furnaces that process iron ore.
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Best answer
This is a CR strengthen problem, we are looking for an answer which makes the argument stronger.
Country Y -> uses foreign exchange for scrap iron
Country Y -> foreign exchange is scare
Conclusion -> Policy is foolish. Country should use its own iron ore
We are looking for an answer, which justifies this policy. What if the processing cost of iron ore is high for domestic.
D) It is a general claim & does not help us address the  issue.
E) Yep this one justifies a possible reason. Overall, the cost is reduced by using such a policy.
answered Jul 6, 2014 by Guru (5,628 points)
selected Jul 8, 2014 by
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