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Correct Answer A

(A) correct.

(B) Wrong: The argument assumes that colonies on the moon are a way of alleviating overcrowding.

(C) Wrong: The conclusion that colonies would be built would still be true.

(D) Wrong: is out scope

(E) Wrong: is not assumed in the argument

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Max: Although doing so would be very costly, humans already possess the technology to build colonies on the Moon. As the human population increases and the amount of unoccupied space available for constructing housing on Earth diminishes, there will be a growing economic incentive to construct such colonies to house some of the population. Thus, such colonies will almost certainly be built and severe overcrowding on Earth relieved.

See how Max goes from saying growing economic incentive to concluding that such colonies will almost certainly be built! It's a big leap. He is assuming that economic incentive will be so great that it will lead to building such colonies.
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