Last visit was: 24 Apr 2024, 08:09 It is currently 24 Apr 2024, 08:09

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Intern
Intern
Joined: 15 Feb 2016
Status:Preparing
Posts: 34
Own Kudos [?]: 213 [19]
Given Kudos: 39
Location: India
Concentration: Finance
Schools: ISB '20
Send PM
Most Helpful Reply
Tutor
Joined: 16 Oct 2010
Posts: 14817
Own Kudos [?]: 64894 [6]
Given Kudos: 426
Location: Pune, India
Send PM
General Discussion
Intern
Intern
Joined: 12 Sep 2018
Posts: 22
Own Kudos [?]: 16 [0]
Given Kudos: 33
Send PM
Current Student
Joined: 04 Sep 2017
Status:Booth 1Y
Posts: 278
Own Kudos [?]: 1162 [0]
Given Kudos: 228
Location: United States (IL)
Concentration: Technology, Leadership
GMAT 1: 690 Q44 V41
GMAT 2: 730 Q50 V38
GPA: 3.62
WE:Sales (Computer Software)
Send PM
Principle: A government should reduce taxes on imports if doing so wou [#permalink]
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.
Intern
Intern
Joined: 27 Mar 2018
Posts: 13
Own Kudos [?]: 23 [0]
Given Kudos: 3
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
E is the only answer that MUST be true. B could be true, but we dont really know for sure.
Intern
Intern
Joined: 23 Sep 2018
Posts: 1
Own Kudos [?]: 8 [1]
Given Kudos: 316
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
Isn't option E a bit vague though as it doesn't really specify the reduction of tax on textile import ?
Manager
Manager
Joined: 15 May 2017
Status:Discipline & Consistency always beats talent
Posts: 146
Own Kudos [?]: 124 [1]
Given Kudos: 132
Location: United States (CA)
GPA: 3.59
WE:Sales (Retail)
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
1
Bookmarks
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?


Quote:
(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.
Quote:
(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.
Quote:
(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.
Quote:
(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.
Quote:
(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.
CEO
CEO
Joined: 07 Mar 2019
Posts: 2552
Own Kudos [?]: 1813 [0]
Given Kudos: 763
Location: India
WE:Sales (Energy and Utilities)
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
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. - If this is true then does textile is only industry or it constitute a majority of the domestic industry which we don't know.

(B) Reducing taxes on textile imports would financially benefit some consumers in the domestic economy but would not benefit the domestic textile industry. - We are not concerned of benefit of industry but customers.

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

(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. - Less or not we can't say. However, what are the other measures. Not relevant.

(E) The added competition produced by any reduction of taxes on imports would significantly harm the domestic textile industry. - This definitely supports the conclusion. Whether it supports consumers in the domestic economy we can't know. Also, the conclusion covers an exception which talks about the harm that might be caused if govt. reduces import taxes. The conclusion limits the scope which this options nicely resolves.

Answer E.
avatar
Intern
Intern
Joined: 31 May 2021
Posts: 2
Own Kudos [?]: 0 [0]
Given Kudos: 6
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
Can someone explain option B using negation method.
Thank you!
Intern
Intern
Joined: 10 Mar 2013
Posts: 43
Own Kudos [?]: 15 [0]
Given Kudos: 182
Location: Turkmenistan
GMAT 1: 730 Q45 V44
Send PM
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
mohit2051 wrote:
Isn't option E a bit vague though as it doesn't really specify the reduction of tax on textile import ?


This was exactly my thought, because it jumped out as the best candidate immediately.
But then, since this is not OG or not even MGMAT, me here being paranoid looking for silly trap answers lol.

"any reduction" could mean any reduction, let's say, on electronic appliances, which somehow in a roundabout way hurts the domestic textile industry.

maybe the original LSAT question does specify, i don't know
GMAT Club Bot
Re: Principle: A government should reduce taxes on imports if doing so wou [#permalink]
Moderators:
GMAT Club Verbal Expert
6917 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne