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05 Jun 2017, 21:59
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
62% (01:56) correct
38%
(02:01)
wrong
based on 346
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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.
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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06 Jun 2017, 01:01
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IMO A
As it makes it clear that the two events are mutually exclusive.
Sent from my ONE E1003 using GMAT Club Forum mobile app
As it makes it clear that the two events are mutually exclusive.
Sent from my ONE E1003 using GMAT Club Forum mobile app
06 Jun 2017, 10:15
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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]
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]
