GMAT Verbal Reasoning Practice Test 1

Question : 70 of 100

Marks: +1, -0

Technological improvements have made electric cars far more cost-efficient in the last decade. However, the threshold of economic viability for electric cars (that is, the cost of running an electric car compared to a gasoline powered car) has remained unchanged. Which of the following, if true, does most to help explain why the increased cost-efficiency of electric cars has not decreased its threshold of economic viability?

The cost of manufacturing gasoline-powered cars has fallen dramatically.
The reduction in the cost of manufacturing electric cars has occurred despite increased raw material costs for those cars.
Technological changes have increased the efficiency of gasoline-powered cars.
Most electricity is generated by coal-fired or nuclear, rather than oil-fired, power plants.
When the price of oil increases, reserves of oil not previously worth exploiting become economically viable

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