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.
Benefit Customer -> -tax
~(benefit DI) -> ~(-tax) —(by added competition)
-> ~(-tax)
Which one of the following is a statement from which the conclusion can be properly drawn using the principle?
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(A) Reducing taxes on textile imports would not financially benefit many consumers in the domestic economy.
There is no connection between C & DI. (A) is out.
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(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy but would not benefit the domestic textile industry.
This does not have to be true. It could be case that both get the benefits. (B) is out.
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(C) The domestic textile industry faces significant competition in many of its export markets.
We are only concerned about Import markets. Export markets are out of the context. (C) is out.
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(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.
There is no such comparison in the reasoning. (D) is out.
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(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry.
Rogue information,Added Competition, from premise presents in this answer choice. In addition, it is the construction of contrapositive of the conclusion. Also, It's the last choice.
(E) is our correct answer.