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Economist: Some critics of the media have contended

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Economist: Some critics of the media have contended  [#permalink]

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New post 10 Feb 2019, 19:27
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A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

58% (01:54) correct 42% (02:21) wrong based on 101 sessions

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Economist: Some critics of the media have contended that negative news reports on the state of the economy can actually harm the economy because such reports damage people’s confidence in it, and this lack of confidence in turn adversely affects people’s willingness to spend money. But studies show that spending trends correlate very closely with people’s confidence in their own immediate economic situations. Thus these media critics are mistaken.

The economist’s argument is flawed in that it fails to consider the possibility that
(A) one’s level of confidence in one’s own economic situation affects how one perceives reports about the overall state of the economy
(B) news reports about the state of the economy are not always accurate
(C) people who pay no attention to economic reports in the media always judge accurately whether their own economic situation is likely to deteriorate or improve
(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations
(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned

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Re: Economist: Some critics of the media have contended  [#permalink]

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New post 12 Feb 2019, 22:54
Why the correct answer is D and not E?

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Re: Economist: Some critics of the media have contended  [#permalink]

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New post 12 Feb 2019, 23:48
RaquelR1409 wrote:
Why the correct answer is D and not E?

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Negative news about country's economy does not necessarily mean an ECONOMIC slowdown. Passage does not say anything about economic slowdown.

It talks about negative news that may come out because of several different reasons such as Corruption, Bad policies, Trade deficit, Low GDP etc
.
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Re: Economist: Some critics of the media have contended  [#permalink]

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New post 08 Mar 2019, 03:18
RaquelR1409 wrote:
Why the correct answer is D and not E?

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(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned
According to it, if it media tells true negative news, than it will have overall positive impact on economy((importantly, non negative impact)) . And same thing is economist is saying, that impact will be non negative. And we need to find flw in it ie. we need to find how the impact will be negative.
so this option is wrong.

(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations
as a result of negative news, people will loose confidence, and thus, according to this option, they'll take a pessimistic view concerning their own immediate economic situations, which according to argument have negative impact.

Let me know if the answer was helpful.
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Economist: Some critics of the media have contended  [#permalink]

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New post 09 Mar 2019, 12:02
patto wrote:
Economist: Some critics of the media have contended that negative news reports on the state of the economy can actually harm the economy because such reports damage people’s confidence in it, and this lack of confidence in turn adversely affects people’s willingness to spend money. But studies show that spending trends correlate very closely with people’s confidence in their own immediate economic situations. Thus these media critics are mistaken.

The economist’s argument is flawed in that it fails to consider the possibility that


The economist's argument is that the media critics are wrong. The media critics say that negative news on the economy can lead to damaging people's confidence in the economy. And that the lack of confidence in the economy leads to people not fueling the economy.

So where is the flaw in the economist's argument? Could negative news actually lead to damaging the economy?

(A) one’s level of confidence in one’s own economic situation affects how one perceives reports about the overall state of the economy

General statement. This does not imply that the Economist is wrong and the Media Critic's are correct... At least without making some major assumptions.
P.S. - I chose this one :facepalm_man:


(B) news reports about the state of the economy are not always accurate

Completely irrelevant. We are not concerned with the accuracy of the news. We are concerned with the behavior of people responding to negative economical news.

(C) people who pay no attention to economic reports in the media always judge accurately whether their own economic situation is likely to deteriorate or improve

Irrelevant. We are concerned with people who do pay attention to economic reports, specifically negative economic reports.

(D) people who have little confidence in the overall economy generally take a pessimistic view concerning their own immediate economic situations

People who lack confidence in the economy have a lack of confidence in their immediate economic situations. So negative news could impact their "little" confidence in the economy, which could lead to these people not fueling the economy. This is in line with the Media Critic's argument and it does not align with the Economist's argument.

(E) an economic slowdown usually has a greater impact on the economic situations of individuals if it takes people by surprise than if people are forewarned

This is actually the opposite of the Media Critics' argument. So we can eliminate. This implies that if there is negative news going into a slowdown, that there will not be as much of a negative impact on the economy as there would be if there was not negative news. So basically, negative news helps the economy not tumble in a downturn.
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Economist: Some critics of the media have contended   [#permalink] 09 Mar 2019, 12:02
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