This one might be a bit cruel, but the passage does give a very clear reason why the answer is correct. Let's get a hold on things first, however. The argument says that some mayor does not want to restore city hall; that he is saying the building is outdated, would cost too much to do when the budget is already tight. The CZ says however that we need this building due to its historical legacy to the founding and that preserving that sense helps 1) maintain respect for CG and 2) its authority.
Concerned citizen: The mayor, an outspoken critic of the proposed restoration of city hall, is right when he notes that the building is outdated, but that the restoration would be expensive at a time when the budget is already tight. We cannot afford such a luxury item in this time of financial restraint, he says. However, I respectfully disagree. The building provides the last remaining link to the days of the city’s founding, and preserving a sense of municipal history is crucial to maintaining respect for our city government and its authority. So to the question, “Can we really afford to?” I can only respond, “Can we afford not to?”
Which one of the following most accurately characterizes a flaw in the concerned citizen’s argument?
(A) The argument is solely an emotional appeal to history.
The CZ has given 2 reasons. One is an appeal to history BUT there is also a clear argument being put forth that the restoration of the building will help maintain respect and authority towards the CG as well.
(B) The argument ambiguously uses the word “afford.”
I don't think the argument is using the word AFFORD ambiguously. It's a play on words. It's the kind of thing you might hear someone write in an article as a response. But the argument does CHANGE how the word AFFORD is being used. The mayor uses it in the simple calculation sense in terms of budget. The CZ uses it in a more abstract sense. As in how can we afford not to do this. Sigh.
(C) The argument inappropriately appeals to the authority of the mayor.
Nope, nothing about this is a flaw here or, I daresay, even mentioned in the argument. The authority of the CZ is only mentioned.
(D) The argument incorrectly presumes that the restoration would be expensive.
Is this a flaw in the response of the CZ? Out.
(E) The argument inappropriately relies on the emotional connotations of words such as “outdated” and “luxury.”
Nope, nothing mentioned about the words outdated or luxury in this way in the response of the CZ. If the Mayor had relied on such a method, and the CZ criticized that method, THEN we might be able to consider this.
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