GRE Reading Comprehension

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A company that invests the necessary infrastructure in a large untapped diamond mine can reap as much as 700% profit in the first year.?Some of the largest untapped diamond mines in the world are in the nation of Shagoca.?Therefore, the American company that brokers a deal in the capital Conkin that allows it to put the necessary infrastructure in place at those mines stands to reap tremendous profits.

Question List: 1

Which of the following, if true, most helps to explain why American companies are not eager to invest in infrastructure necessary for diamond mining in Shagoca?

  • A The diamond mines in Shagoca are located close to population centers, which would allow for easy transport
  • B Diamond mining in climates closer to the equator, such as that in Shagoca, is much easier than diamond mining in regions where the soil is frozen most of the year
  • C In certain states in Shagoca, profits from diamond mining is as heavily taxed as it is in the United States
  • D A minority of the traders buying the diamonds will be citizens of Shagoca.
  • E The fifteen-year-old civil war in Shagoca has caused significant setbacks for many foreign investments.

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