Finance minister: The World Bank's "Doing Business" report ranks countries in terms of ease of doing business in them...

christophergogo on June 8, 2022

Explanation for (D)

I got this question wrong and didn't find the explanation of the other tutor's explanation helpful (or perhaps, I didn't understand it). If any one else is struggling, below how I interpret why (D) is correct. There's no indication of the size of a hypothetical business use to make the report. So, we need to resolve results of the report impacting real small and midsized businesses with the hypothetical businesses used to make the report. So, a good question to ask could be: 1 - "why does business size matter as an indication for future results" or 2- "are the small and midsized businesses in the results of the report the same size as the hypothetical business used to establish the report?" (D) is quite a convoluted way of asking either question, but it does address the disconnect between the report, the result, and future expectation.

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Emil-Kunkin on June 10, 2022

Hi Christophergogo,

I think this is a great way to think about (D). We know that the world bank uses some hypothetical business, but we have no idea what size this hypothetical business is. We also know that the country made it easier for small and some midsize businesses to do business. In order for this change to impact their ranking, the businesses the change effect must be large enough to be considered by the world bank.