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Problem 12 - Entrance Test

Investing in renewable energy technologies is a sound financial decision for governments. Although the initial capital outlay is substantial, the long-term savings from reduced fossil fuel imports and the economic growth spurred by a new industry will significantly outweigh these costs, leading to net economic benefits for the nation.

Correct: A

The argument hinges on two main financial benefits: long-term savings from reduced fossil fuel imports and economic growth from a new industry. To strengthen the argument, we need to make one or both of these benefits more certain or more substantial. Choice A directly strengthens the 'long-term savings from reduced fossil fuel imports' component. If fossil fuel prices are expected to remain high or increase, the savings achieved by reducing reliance on them become more significant and predictable, thus making the investment more financially sound. Choice B helps with the cost of developing the industry but not directly with the savings or economic growth as stated. Choice C strengthens the 'economic growth' component, while D provides analogous evidence. However, A addresses a fundamental and direct cost avoidance mechanism that is central to the financial benefits outlined.