ajaym28 wrote:
In an attempt to draw manufacturing companies from Calonia, a neighboring country, the government of Alusia is instituting a tax credit of $1000 per worker per year for any company that employs more than twenty workers in the manufacturing sector. Because companies are highly responsive to tax credit incentives, the Alusian government expects that most Calonian manufacturing companies will move into Alusia within ten years.
we can come up with few assumptions:
Calonian gvt will not respond with the same tax credits
Tax credits is the only thing that scares manufacturing companies to enter Alusia
Companies that will come to Alusia will actually have more than 20 workers.
The success of the plan instituted by the government of Alusia relies on the assumption that
A. tax credits are the most popular and effective incentive by which to lure manufacturing companies to a new country.
negate this one - conclusion stands, so out. moreover, this one talks about popularity, so incorrect.
B. the Calonian government will respond by offering a similar tax credit for manufacturing companies that remain in Calonia.
this one actually weakens the conclusion.
C. manufacturing companies that have succeeded in Calonia are less likely to succeed if they move operations to a neighboring country.
talks about things not concerned in the argument, so out.
D. most Calonian manufacturing companies expect to employ at least twenty workers in the manufacturing sector within ten years.
ok, so if we negate this one, we see that most of the companies have <20 workers. tax credit in A applies only if companies have >20 workers. thus, there is no need for the companies to move to A, if they have <20 workers, since they will not receive any tax credits. D looks good.
E. Calonian manufacturing companies tend to continue paying each worker, on average, more than $1000 per year.
payment for workers - irrelevant.
So nice to see how I've improved myself