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Principle: A government should reduce taxes on imports if doing so wou

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Principle: A government should reduce taxes on imports if doing so wou  [#permalink]

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New post 16 Feb 2019, 22:15
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E

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  35% (medium)

Question Stats:

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Principle: A government should reduce taxes on imports if doing so would financially benefit many consumers in its domestic economy. There is a notable exception, however: it should never reduce import taxes if one or more of its domestic industries would be significantly harmed by the added competition.
Conclusion: The government should not reduce taxes on textile imports.

Which one of the following is a statement from which the conclusion can be properly drawn using the principle?


(A) Reducing taxes on textile imports would not financially benefit many consumers in the domestic economy.

(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy but would not benefit the domestic textile industry.

(C) The domestic textile industry faces significant competition in many of its export markets.

(D) The domestic textile industry and consumers in the domestic economy would benefit less from reductions in taxes on textile imports than they would from other measures.

(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry.
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Re: Principle: A government should reduce taxes on imports if doing so wou  [#permalink]

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New post 20 Feb 2019, 04:57
akanshaxo wrote:
Principle: A government should reduce taxes on imports if doing so would financially benefit many consumers in its domestic economy. There is a notable exception, however: it should never reduce import taxes if one or more of its domestic industries would be significantly harmed by the added competition.
Conclusion: The government should not reduce taxes on textile imports.

Which one of the following is a statement from which the conclusion can be properly drawn using the principle?


(A) Reducing taxes on textile imports would not financially benefit many consumers in the domestic economy.

(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy but would not benefit the domestic textile industry.

(C) The domestic textile industry faces significant competition in many of its export markets.

(D) The domestic textile industry and consumers in the domestic economy would benefit less from reductions in taxes on textile imports than they would from other measures.

(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry.


Not sure between A & C.
A) no benefit for many consumers -> no tax reduction
E) Harm for the domestic industry -> no tax reduction

Any help?
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Principle: A government should reduce taxes on imports if doing so wou  [#permalink]

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New post 23 Feb 2019, 13:47
akanshaxo wrote:
Principle: A government should reduce taxes on imports if doing so would financially benefit many consumers in its domestic economy. There is a notable exception, however: it should never reduce import taxes if one or more of its domestic industries would be significantly harmed by the added competition.
Conclusion: The government should not reduce taxes on textile imports.

Which one of the following is a statement from which the conclusion can be properly drawn using the principle?


(A) Reducing taxes on textile imports would not financially benefit many consumers in the domestic economy.

(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy but would not benefit the domestic textile industry.

(C) The domestic textile industry faces significant competition in many of its export markets.

(D) The domestic textile industry and consumers in the domestic economy would benefit less from reductions in taxes on textile imports than they would from other measures.

(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry.


Great question. I would say (B) and (E) are both definitely true. So which is better and more direct? Let's focus on Exception and Conclusion.

Exception: it should never reduce import taxes if one or more of its domestic industries would be significantly harmed by the added competition.

Conclusion: The government should not reduce taxes on textile imports.

(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy
- Potentially true, because some consumers might be able to purchase textiles for lower prices because of less tax.
(B) but would not benefit the domestic textile industry.
- True, because the domestic textile industry would have more competition.

(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry.

Answer (E) almost exactly matches the Exception. E is better.

Hope this helps someone.
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Re: Principle: A government should reduce taxes on imports if doing so wou  [#permalink]

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New post 25 Feb 2019, 15:35
E is the only answer that MUST be true. B could be true, but we dont really know for sure.
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Re: Principle: A government should reduce taxes on imports if doing so wou   [#permalink] 25 Feb 2019, 15:35
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