The public often protests when an unregulated service industry is foun

Question

The public often protests when an unregulated service industry is found to be corrupt. However, regulation often leads to increased costs for the consumer. Fewer companies survive in a regulated market, leading to decreased competition and higher prices. The public then responds negatively to the increased costs of these services.

The statements above best support which of the following?

A. Service industries should not be regulated.
B. The public should not protest unregulated services.
C. Only unregulated services are subject to public protest.
D. The public is sometimes the cause of its own complaints.
E. Decreased competition always leads to increased prices

VeritasPrepBrandon · Accepted Answer

The logic flow chart for this question is as follows:

Public complains about unregulated industry corruption --> Industry becomes regulated --> Costs increase as a result of regulation --> Public complains about increased costs.

If you look at beginning and end of the flow chart, you can see that the public is causing its own grievances. Thus Answer choice D works great.

I hope this helps!!!

Bunuel · Answer

OFFICIAL EXPLANATION

The passage describes how public complaints about one issue (corruption in unregulated service industries) can have consequences (increased costs) that lead to new public complaints. The correct answer will tie together this information without assuming too much.

(A) This answer choice is too extreme. While regulation does often result in increased costs, which consumers don't like, the regulation presumably halts the corruption, which consumers also don't like.

(B) This answer choice is a judgment call based on the idea that the increased costs are less desirable than the corruption. The passage does not provide information to support this claim.

(C) The passage doesn't address what types of services are subject to public protest. In addition, the word "only" is extreme.

(D) CORRECT.  This answer summarizes what the passage describes – a cycle of public discontent. Notice that the correct “inference” or “conclusion” here isn't much more than a summary of the premises in the passage.

(E) In the passage, the author says "regulation often leads to increased costs for the consumer" due to decreased competition. Always is not the same as often. This answer choice is too extreme.

abhimahna · Answer

Argument is saying if people find industry unregulated then they say it is corrupt. However, on making those industries regulated pricing increasing and then people come and say it is very costly. Why the heck they are doing this to us?? :-D

1.Service industries should not be regulated. : Is it?? Then they will come and say please man do something. 2.The public should not protest unregulated services. As if they are going to hear us. Incorrect 3.Only unregulated services are subject to public protest. Too extreme. 4.The public is sometimes the cause of its own complaints. Yes, here we come. First saying make it regulated and when we do they say don;t do it please. 5.Decreased competition always leads to increased prices. So, what?? We are already given this.

ak2121 · Answer

it says often leads to increased costs tothe customers. but in the next line it says fewer companies survive, leading to higher prices and option c says exactly that.
often is referred to the increased cost to the customers. why e is certaily wrong?

guddo · Answer

The public often protests when an unregulated service industry is found to be corrupt. However, regulation often leads to increased costs for the consumer. Fewer companies survive in a regulated market, leading to decreased competition and higher prices. The public then responds negatively to the increased costs of these services.
 
 The statements above best support which of the following?

The passage says the public protests corruption in unregulated industries, and that regulation can lead to higher costs. Then the public complains about those higher costs.  So the supported idea is that the public’s own demand for regulation can sometimes lead to the later problem it complains about .

A. Service industries should not be regulated.

Wrong. The passage describes a downside of regulation, but it does not say regulation should never happen.

B. The public should not protest unregulated services.

Wrong. The passage does not say public protest is wrong. It only says protest can lead to regulation, which can increase costs.

C. Only unregulated services are subject to public protest.

Wrong. The passage says the public often protests unregulated corrupt industries, not that only those industries are protested.

D. The public is sometimes the cause of its own complaints.

Correct. The public protests corruption, regulation follows, regulation raises costs, and then the public complains about the higher costs. So the public can sometimes help create the very situation it later criticizes.

E. Decreased competition always leads to increased prices.

Wrong. Too strong. The passage says decreased competition can lead to higher prices in this context, not that it always does.

Answer: (D)

The public often protests when an unregulated service industry is foun

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The public often protests when an unregulated service industry is foun

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