In a recent article, economist Steven Landsburg argues that saving mon

P1: Landsburg: Saving is important
P2: Saving benefits society
P3: err in extreme

Q1 Primary purpose
A. argue that misers are more helpful to society than philanthropists (unsupported comparison -> DROP)
B. petition the government to remove any cap on the amount that people can save in tax free accounts
C. show that the recommendations of an economist can be dangerous if they are taken too far
D. examine the various ways that people can spend money (not about spending money -> DROP)
E. demonstrate that it is better to save money by putting it in the bank than to save money by stuffing it in a mattress (unsupported comparison -> DROP)
Between B and C, B means the author supports Landsburg policy, while in C, the author supports Landsburg policy with caveat, so the answer is C.

2. The passage suggests that Landsburg would agree with which of the following?
A. A miser who burns his money is benefiting society. (YES - P2)
B. If everyone saves every dollar that they can, trade will be severely impaired. (author's stance, not Landsburg -> FALSE)
C. A miser benefits society more so than anyone else. (unsupported comparison -> FALSE)
D. Philanthropists should stop giving away their money and should spend it all instead. (out of scope -> FALSE)
E. Misers generally save money because they wish to benefit society. (no info about miser intentions -> FALSE)
Ans: A

3. According to Landsburg, in what way does a miser benefit society if the miser puts money in the bank?
(Two ways - reduce borrowing costs & reduce prices)
A. The miser takes a large tax deduction.
B. The miser gives to charitable causes.
C. The miser increases interest rates so that others can also make money by saving.
D. The miser makes it cheaper for others to borrow money. (reduce borrowing cost: YES)
E. The miser helps employ bank workers.
Ans: D

4. The author of the passage argues that which of the following can be dangerous?
(Dangerous if taken too far)
A. Tax breaks for saving (not tax breaks in general, if with limits, ok)
B. Landsburg's recommendation for saving (YES -> narrower than A -> remove any limits)
C. Lowering of interest rates (good - P2)
D. Trading of goods and services (not supported)
E. Philanthropic activity (not supported)
Ans: B