Official Explanation

The argument focuses on the relative cost of goods and services in Countries X and Y due to an exchange rate that has historically favored the currency of Country Y. The argument presents an apparent discrepancy: the citizens of Country Y often take their vacations in Country X, yet rarely purchase clothing or electronics in Country X, despite the fact that those items are more expensive in their home country, even when sales taxes are taken into account. The correct answer will be one that indicates some reason why it might not actually be cheaper for citizens of Country Y to purchase clothing and electronics in Country X.

(A) The fashion preferences of the citizens of Country Y do not directly explain their buying habits. To be relevant, this statement would have to go further to link fashion preferences to purchasing decisions: for example, it would have to continue “…and are therefore willing to pay more for the goods available in their own country.”

(B) The fact that stores in Country Y receive the latest fashions and technology earlier than stores in Country X does not address the buying habits of the citizens. Even if we could assume that the citizens of Country Y demand the latest goods as soon as they are available, it still would not directly explain their buying habits. To be relevant, this statement would have to go further to link consumer preferences to purchasing decisions: for example, it would have to continue “…and the citizens of Country Y are willing to pay more in their own country just to acquire the latest goods as soon as they are available.”

(C) The attitude of the citizens of Country X is irrelevant to an argument about the purchasing habits of the citizens of Country Y.

(D) CORRECT. This choice states that the government of Country Y imposes tariffs on imported goods. This suggests that perhaps items that are purchased in Country X and brought into Country Y become prohibitively expensive because of the tariffs and could explain the spending habits of the citizens of Country Y.

(E) The currency of Country Z is irrelevant to why citizens of Country Y rarely purchase clothing or electronics in Country X.

Answer: D