President of Lazyville: The people of our country love watching movies

VeritasKarishma Can u help ?
Why should E not be an answer here ? Piracy will cause govt to loose revenue thus bad for economy.

Not E becasue it says might encourage while we need an answer which definitely don't wouldn't help the economy. Which is case B

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With POE:
IMO B

A is irrelevant
C.Has no relation with economy
D. It is contradicting
E. Could have been the answer, but because of the usage of 'Might'B is best choice

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Agreed, this isn't a high quality question. The main reason being, a good question will test direct impact/effects rather than both indirect effects.

In context of this question however, here's why (B) has a stronger correlation than (E)

B) the available leisure time is not enough to cater to the increased movie watching and people will cut into their productive time to compensate for it.
Low Leisure Time > Intruding into productive time > Less productivity in businesses > impact on the economy. Thus, bad idea to have a Blockbuster come up and eat into a booming Inox business.

E) movie rental services might encourage piracy of movies.
Blockbuster comes up > Piracy MIGHT increase > eat into Inox' business > impact on the economy IF Inox is big enough to cause an impact. Notice the conditional words which weaken this option.

To complete the argument logically, the best option is:

E) movie rental services might encourage piracy of movies.

The reasoning is as follows:

The argument states that setting up movie rental services within the country would not be helpful to the economy. This implies that there might be some negative economic consequence or harm to the existing revenue source (cinema theaters) from establishing movie rental services.

Among the given options, the one that best aligns with this line of reasoning is option E, which suggests that movie rental services might encourage piracy of movies. If piracy increases, it could lead to decreased revenues for both cinema theaters and legitimate rental services, thereby harming the economy and the government's revenue from this sector.

The other options do not logically complete the argument in a relevant manner:

A) is irrelevant to the economic impact of movie rental services.
B) is speculative and does not necessarily follow from the premise.
C) is about the movie production industry, which is separate from the movie rental or exhibition business.
D) is a statement about the relative costs of running different businesses, but it does not explain why movie rental services would not be helpful to the economy.

Therefore, option E provides the most logical completion of the argument presented.