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Investment Banker: Democracies require free-market capitalist

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Investment Banker: Democracies require free-market capitalist  [#permalink]

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New post 01 Dec 2018, 11:06
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Question Stats:

59% (02:25) correct 41% (02:12) wrong based on 128 sessions

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Investment Banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.

Which one of the following is an assumption required by the investment banker's argument?

A) No current government has reached as complete a state of democracy as it is possible for a government to reach

B) The more democratic a country is, the less regulated its economy must be

C) The need for economic stability makes the existence of partially democratic governments more probable than the existence of fully democratic governments

D) A free-market economy is incompatible with a nondemocratic regime

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past

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Re: Investment Banker: Democracies require free-market capitalist  [#permalink]

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New post 01 Dec 2018, 11:29
IB: Non-democratic legislation might be a step into the direction of free market economy and democracy, given that the respective country is transitioning from a totalitarian to a democratic form of government.

It is our task to identify an assumption which supports that statement and answer choice E seems well suited:

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past

Past totalitarian regime => Need for transition => Justification for "uncapitalistic" legislation
This provides a solid foundation for the premise.

Hope this helps.

Regards,
Chris
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Re: Investment Banker: Democracies require free-market capitalist   [#permalink] 01 Dec 2018, 11:29
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