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In a July 2011 survey of 53 prominent American economists, 65% said

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In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   05 Jun 2017, 21:59
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In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.

Which of the following statements must be true for the above argument to hold?

A. The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
B. A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.
C. The opinions of all the 53 economists surveyed are equally credible.
D. Most of the claims made by the economists surveyed have been proved to be true in the past.
E. High corporate taxes do not aid the growth of the new companies.

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A
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   06 Jun 2017, 01:01
IMO A
As it makes it clear that the two events are mutually exclusive.

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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   06 Jun 2017, 10:15
We are looking for an inference.

A. The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
[Out of scope - argument doesn't mention anything about prices]
B. A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.- [out of scope]
C. The opinions of all the 53 economists surveyed are equally credible. - [Strengthens argument but not an inference].
D. Most of the claims made by the economists surveyed have been proved to be true in the past. [Strengthens argument but not an inference].
E. High corporate taxes do not aid the growth of the new companies. [ Correct - Higher corporate taxes but companies aren't hiring i.e. employment rate isn't decreasing]
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   18 Apr 2019, 06:26
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My understanding of the passage:

Gap Analysis: More people stating A(lack of demand) than B(High corporate taxes) as a reason for C(not hiring new employees). Therefore, B did not cause C. B --->x C
For Assumptions: Answer choice MUST BE TRUE

Which of the following statements must be true for the above argument to hold?

A) The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
The negative of this choice: A is caused by B. Therefore, conclusion that B did not cause C is broken. Hence, this choice is correct.

B) A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.
low cost strategies is not relevant to the conclusion to identify what caused lower employment rates.

C) The opinions of all the 53 economists surveyed are equally credible.
I saw this as a potential contender, since the argument is based on the survey results. But the word "all" eliminates this, since
it need not be true that ALL 53 economists surveyed must be equally credible for conclusion to hold true.

D) Most of the claims made by the economists surveyed have been proved to be true in the past.
So?? validity of their past claims has no relevance here and it is not mandatory that their past claims MUST BE TRUE for this claim to be true.

E) High corporate taxes do not aid the growth of the new companies.
growth of new companies is out of scope.
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   26 Jun 2019, 03:23
Can someone explain how and why A is the correct answer?

Thanks.
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   28 Jun 2019, 00:58
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jibberjabber wrote:
Can someone explain how and why A is the correct answer?

Thanks.

Argument states:
    We have different voices stating 2 different things -
      X( lack of demand) ----CAN lead to----> Z( lower employment rates)
      Y( corporate taxation) ----CAN lead to----> Z( lower employment rates)

    Conclusion:
      Y ----does NOT lead to----> Z( lower employment rates)

Pre-Think:
    What if Y could have affected X, leading to Z?
    If that's the case, the argument will shatter.

Answer choice analysis:
    A. The lack of demand is NOT due to higher prices charged by corporates for their products in order to account for the higher tax rate.
      Aha!
      !A = In order to account for the higher tax rate( Y( corporate taxation )),
      higher prices charged by corporates for their products --------> The lack of demand( Z( lower employment rates))
      Meaning: Y( corporate taxation) ----was somehow responsible for----> Z( lower employment rates)
      The negation BREAKS the argument.

    B. A higher corporate tax rate does not necessarily lead corporates to adopt low-cost strategies.
      Good to know. Let's negate B:
      A higher corporate tax rate does necessarily lead corporates to adopt low-cost strategies.
      !B = Y( corporate taxation) ----------> low-cost strategies.
      However, low-cost strategies do NOT necessarily equal lower employment rates, unless backed by the argument.
      Shell-Game. OUT

    C. The opinions of all the 53 economists surveyed are equally credible.
      Not important. Their credibilities CAN easily vary amongst themselves, yet the argument CAN stand true.
      The negation does NOT break the conclusion. OUT

    D. Most of the claims made by the economists surveyed have been proved to be true in the past.
      Least bothered about what happened in the past. OUT

    E. High corporate taxes do not aid the growth of new companies.
      Growth of companies? That too new. Nope. E is OUT
      With each passing word, E loses relevance.
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink] New post   20 Nov 2020, 03:51
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Re: In a July 2011 survey of 53 prominent American economists, 65% said [#permalink]
20 Nov 2020, 03:51
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