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E
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Difficulty:
35%
(medium)
Question Stats:
72% (02:03) correct
28%
(02:24)
wrong
based on 1157
sessions
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Prohibitively high tariffs on salmon from Winterland allow companies in the Republic of Osum to sell salmon without any foreign competition. Some economists believe that the tariffs partly explain why Osum salmon costs one dollar more than Winterland’s salmon. If the government removed the tariffs, consumers would either purchase more Winterland salmon than they would Osum salmon or else Osum companies would have to reduce the price of their salmon.
The conclusion reached in the last sentence depends upon which of the following assumptions?
A. The legislature of Osum proposes tariffs and the Prime Minister ratifies them.
B. Winterland has passed a countervailing tariff against salmon from the Republic of Osum.
C. A constitutional amendment is not needed to remove the tariffs.
D. Although the Republic of Osum has lower tariffs on salmon from other countries besides Winterland, these tariffs are just as effective in eliminating all salmon imports.
E. Osum salmon is not over one dollar better in quality than is Winterland salmon.
The conclusion reached in the last sentence depends upon which of the following assumptions?
A. The legislature of Osum proposes tariffs and the Prime Minister ratifies them.
B. Winterland has passed a countervailing tariff against salmon from the Republic of Osum.
C. A constitutional amendment is not needed to remove the tariffs.
D. Although the Republic of Osum has lower tariffs on salmon from other countries besides Winterland, these tariffs are just as effective in eliminating all salmon imports.
E. Osum salmon is not over one dollar better in quality than is Winterland salmon.
Updated on: 18 Sep 2012, 05:35
Originally posted by doraemonbeo on 17 Sep 2012, 12:51.
Last edited by doraemonbeo on 18 Sep 2012, 05:35, edited 1 time in total.
Last edited by doraemonbeo on 18 Sep 2012, 05:35, edited 1 time in total.
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This argument depends on the assumption that if there are no tariffs and Osum salmon costs more than Winterland one, Winterland salmon would win favour of consumers. Although Osum salmon is more expensive, consumers may still buy it if it has better quality. Therefore we should expect that Osum salmon higher price cannot be explained by it better quality.
A. There's nothing to do with the proposal of tariffs. INCORRECT
B. Tariffs against Osum salmon only affect Winterland market. INCORRECT
C. The requirement to remove the tariffs is out of scope.
D. Not relevant.
E. CORRECT. As stated above, if Osum salmon is not over one dollar better in quality than is Winterland salmon, there's no reason for consumers to waste money.
A. There's nothing to do with the proposal of tariffs. INCORRECT
B. Tariffs against Osum salmon only affect Winterland market. INCORRECT
C. The requirement to remove the tariffs is out of scope.
D. Not relevant.
E. CORRECT. As stated above, if Osum salmon is not over one dollar better in quality than is Winterland salmon, there's no reason for consumers to waste money.
17 Sep 2012, 20:46
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@doraemonbeo : Doesn't the option E say that the Osum salmon is not better in quality than Winterland? Assuming the tariffs are removed people would get Winterland's salmon because it is $1 cheaper & same quality as Osum's salmon.
IMO it is C.
IMO it is C.
