The correct answer is
(A) The first is an objection that has been raised against a certain plan; the second is a prediction that, if accurate, undermines the force of that objection.Why:
First boldfaced portion: "three percent of current retail sales falls short of the amount raised"
- This is clearly an objection raised by critics against the sales tax plan
- The argument acknowledges this objection is factually correct ("The critics are correct on this point")
Second boldfaced portion: "retail sales in Aroca City are bound to increase substantially"
- This is a prediction about future retail sales
- If this prediction is accurate, it undermines the critics' objection because increased sales would generate more tax revenue, potentially making up for the shortfall
Why the other options are incorrect:
(B) Incorrect because the argument doesn't endorse the criticism in the first boldface - it acknowledges it but then proceeds to counter it. Also, the second boldface isn't advocating for an alternative plan but explaining why the proposed plan might work despite the criticism.
(C) Incorrect because the argument doesn't endorse the criticism. Additionally, the second boldface isn't supporting the criticism but is actually countering it.
(D) Incorrect because the argument doesn't seek to refute the first boldface claim - it actually accepts it as true ("The critics are correct on this point"). The second boldface doesn't show the claim is false but rather explains why the plan might still work despite the initial claim being true.
(E) Incorrect because the second boldface isn't rewording the first claim. The first refers to current retail sales being insufficient, while the second makes a prediction about future sales growth - these are distinct points, not rewordings of the same claim.