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If the government increases its funding for civilian

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If the government increases its funding for civilian [#permalink] New post 21 Jan 2006, 22:59
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E

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If the government increases its funding for civilian scientific research, private patrons and industries will believe that such research has become primarily the government’s responsibility. When they believe that research is no longer primarily their responsibility, private patrons and industries will decrease their contributions toward research. Therefore, in order to keep from depressing the overall level of funding for civilian scientific research, the government should not increase its own funding.

Which one of the following is an assumption on which the argument relies?

(A) Governments should bear the majority of the financial burden of funding for civilian scientific research.
(B) Any increase in government funding would displace more private funding for civilian scientific research than it would provide.
(C) Private donations toward research are no longer welcomed by researchers whose work receives government funding.
(D) Civilian scientific research cannot be conducted efficiently with more than one source of funding.
(E) funding for civilian scientific research is currently at the highest possible level.
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 [#permalink] New post 21 Jan 2006, 23:22
"B" is the best!
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 [#permalink] New post 21 Jan 2006, 23:34
After about 2 minutes I finally got B. :roll:

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 [#permalink] New post 22 Jan 2006, 01:58
Yep B. Mostly used POE to eliminate other choices and tried to justify B in the following way.

Total funding = Govt funding + Private funding
Conclusion specifically says Total funding is depressed if Govt increases the funding. This can be true only if for every $x increase Govt's funding, Private funding reduces by >$x.

The premises are strong, but the conclusion is weak without the assumption.

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 [#permalink] New post 22 Jan 2006, 06:57
It is B. It is from "in order to keep from depressing the overall level of funding for civilian scientific research" that B is the most obvious.
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 [#permalink] New post 22 Jan 2006, 15:09
Did a negation and B stood out.. 1.5 min
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 [#permalink] New post 22 Jan 2006, 22:22
Agree B it is

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 [#permalink] New post 28 Jan 2006, 08:31
Good work gand, OA is B.
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 [#permalink] New post 28 Jan 2006, 09:45
late but B. stand out....
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 [#permalink] New post 28 Jan 2006, 13:48
Economic Perspective: Crowding Out

Assertion: Govt. funds will crowd out (displace) private investment

Underlying Assumpting: More private funds will be displaced than those funds added by the government
  [#permalink] 28 Jan 2006, 13:48
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