CR - Answer is A, but why?

GRE Verbal Problem Solving
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163352868703663067885534006278372250×4000 1.39 MB

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Short forms,
Trade balance = TB,
Rise in standard of living = RSL

So the author says Country’s competency cannot be measured by TB or RSL alone. And reasons why by saying TB might be achieved by degrading the RSL (Or RSL might be achieved by degrading TB). So a country’s true competency can only be measured when both TB and RSL are +ve. There’s only one such option

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Thank you for your precious time

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