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Politician: A government that taxes incomes at a rate of 100 percent

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Politician: A government that taxes incomes at a rate of 100 percent  [#permalink]

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New post 09 Apr 2020, 01:14
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  35% (medium)

Question Stats:

71% (01:41) correct 29% (01:31) wrong based on 34 sessions

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Politician: A government that taxes incomes at a rate of 100 percent will generate no revenue because all economic activity will cease. So it follows that the lower the rate of income tax, the more revenue the government will generate by that tax.

Economist: Your conclusion cannot be correct, since it would mean that an income tax of 0 percent would generate the maximum revenue.

Which one of the following argumentative strategies is used by the economist in responding to the politician?


(A) stating a general principle that is incompatible with the conclusion the politician derives

(B) providing evidence that where the politician’s advice has been adopted, the results have been disappointing

(C) arguing that the principle derived by the politician, if applied in the limiting case, leads to an absurdly false conclusion

(D) undermining the credibility of the politician by openly questioning the politician’s understanding of economics

(E) attacking the politician’s argument by giving reason to doubt the truth of a premise

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Re: Politician: A government that taxes incomes at a rate of 100 percent  [#permalink]

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New post 09 Apr 2020, 02:59
1
Quote:
Politician: A government that taxes incomes at a rate of 100 percent will generate no revenue because all economic activity will cease. So it follows that the lower the rate of income tax, the more revenue the government will generate by that tax.

Economist: Your conclusion cannot be correct, since it would mean that an income tax of 0 percent would generate the maximum revenue.

Which one of the following argumentative strategies is used by the economist in responding to the politician?
(A) stating a general principle that is incompatible with the conclusion the politician derives
(B) providing evidence that where the politician’s advice has been adopted, the results have been disappointing
(C) arguing that the principle derived by the politician, if applied in the limiting case, leads to an absurdly false conclusion
(D) undermining the credibility of the politician by openly questioning the politician’s understanding of economics
(E) attacking the politician’s argument by giving reason to doubt the truth of a premise


argument
p= 100% rate would cease activity and generate no revenue
= so the lower the rate the higher the revenue generated
e= not true; if rate is 0, then revenue is also 0

ans (C) if P's principle was true, than 0 rate would max revenue, in fact it zero's revenue!
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Re: Politician: A government that taxes incomes at a rate of 100 percent  [#permalink]

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New post 09 Apr 2020, 03:11
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(A) stating a general principle that is incompatible with the conclusion the politician derives.....he didnt state any general principle.....he was specific......INCORRECT

(B) providing evidence that where the politician’s advice has been adopted, the results have been disappointing.....He didnt say its disappointing......he said its incorrect completely.............INCORRECT

(C) arguing that the principle derived by the politician, if applied in the limiting case, leads to an absurdly false conclusion.......Limiting case meant an extreme case.......here its 0......which resulted in an incorrect conclusion........CORRECT

(D) undermining the credibility of the politician by openly questioning the politician’s understanding of economics.......INCORRECT....its not just about the questioning......

(E) attacking the politician’s argument by giving reason to doubt the truth of a premise.......he didnt attck the politician...INCORRECT

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Re: Politician: A government that taxes incomes at a rate of 100 percent  [#permalink]

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New post 09 Apr 2020, 03:31
Politician: A government that taxes incomes at a rate of 100 percent will generate no revenue because all economic activity will cease. So it follows that the lower the rate of income tax, the more revenue the government will generate by that tax.

Economist: Your conclusion cannot be correct, since it would mean that an income tax of 0 percent would generate the maximum revenue.

Which one of the following argumentative strategies is used by the economist in responding to the politician?


(A) stating a general principle that is incompatible with the conclusion the politician derives. principle is not incompatible. Its affects are not what is expected

(B) providing evidence that where the politician’s advice has been adopted, the results have been disappointing. This stmt clearly explains if applied the strategy will be disappointing where revenue becomes zero

(C) arguing that the principle derived by the politician, if applied in the limiting case, leads to an absurdly false conclusion stm do not talk about limit. It talks about when applied full

(D) undermining the credibility of the politician by openly questioning the politician’s understanding of economicsno questions on credibility

(E) attacking the politician’s argument by giving reason to doubt the truth of a premisethruth is not impacted here

B is the correct answer
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Re: Politician: A government that taxes incomes at a rate of 100 percent  [#permalink]

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New post 09 Apr 2020, 20:07
1
ANS C

Resoning : the Economist takes the considers the extreme case of Politician Conclusion and renders it false...

(A) stating a general principle that is incompatible with the conclusion the politician derives Its a specific case

(B) providing evidence that where the politician’s advice has been adopted, the results have been disappointing

(C) arguing that the principle derived by the politician, if applied in the limiting case, leads to an absurdly false conclusion CORRECT


(D) undermining the credibility of the politician by openly questioning the politician’s understanding of economics

(E) attacking the politician’s argument by giving reason to doubt the[s] truth of a premise[/s]
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Re: Politician: A government that taxes incomes at a rate of 100 percent   [#permalink] 09 Apr 2020, 20:07

Politician: A government that taxes incomes at a rate of 100 percent

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