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13 Jun 2025, 16:28
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
39% (02:09) correct
61%
(02:18)
wrong
based on 149
sessions
History
Date
Time
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Not Attempted Yet
Soltopian economist: To strengthen Soltopia's economy during a recession, our national government should reject plans to offer tax rebates to individual taxpayers and should instead give money to local governments. Individual consumers spend much of their income on imported goods, so their purchases tend to bolster the economies of other nations more than that of our own.
Which of the following is an assumption the economists argument requires?
A. To strengthen Soltopian's economy during a recession, the national government must either give money to local government or give tax rebates to individual taxpayers.
B. On average, local governments in Soltopia spend a lower percentage of their income on imported goods than individual Soltopian consumers do.
C. Any local government income in Soltopia that is not spent on imported goods bolsters at least some portion of the Soltopian national economy.
D. The Soltopian national government should not act in a way that bolsters the economies of other nations when its own economy is in a recession.
E. The portion of a rebate to an individual Soltopian taxpayer that is not spent on goods produced in Soltopia is typically spent on imported goods.
Which of the following is an assumption the economists argument requires?
A. To strengthen Soltopian's economy during a recession, the national government must either give money to local government or give tax rebates to individual taxpayers.
B. On average, local governments in Soltopia spend a lower percentage of their income on imported goods than individual Soltopian consumers do.
C. Any local government income in Soltopia that is not spent on imported goods bolsters at least some portion of the Soltopian national economy.
D. The Soltopian national government should not act in a way that bolsters the economies of other nations when its own economy is in a recession.
E. The portion of a rebate to an individual Soltopian taxpayer that is not spent on goods produced in Soltopia is typically spent on imported goods.
16 Jun 2025, 04:32
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GMATslaughter100
Reasoning-
The economist argues that giving money to local governments is better for strengthening Soltopia's economy than giving tax rebates to individuals, because:
Individual consumers spend much of their income on imported goods, which helps other nations’ economies more than Soltopia’s.
For the conclusion (give money to local governments instead of to individuals) to hold, the key assumption is that local governments would not make the same mistake — i.e., that local governments are more likely to spend money domestically, thereby helping Soltopia's economy.
That is exactly what choice B says.
[*]A. This forces a false dichotomy (either/or) and is not required by the argument. The economist is just comparing two options, not claiming they’re the only ones.
[*]C. This seems plausible but is too weak to be necessary. Even if some local government spending helps Soltopia’s economy, the argument assumes it does so more effectively than individual spending.
[*]D. This is an ethical claim, not a necessary assumption for the economist’s reasoning.
[*]E. This restates part of the argument, but it doesn’t address why local governments are a better alternative, which is the key issue.
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