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V05-41

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V05-41 [#permalink]

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New post 16 Sep 2014, 02:26
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Utility companies in the United States are generally privately-owned, for-profit business ventures. One notable exception is the Tennessee Valley Authority, which was formed under the New Deal in the 1930s and continues, under federal control, to provide electricity to parts of the Southeast. Given the current pro-business climate in the region, however, it is safe to say that TVA is long overdue to be privatized.

The argument that the ownership of the Tennessee Valley Authority should be privatized rests on which of the following assumptions?


A. A pro-business climate demands the private ownership of utilities.
B. New Deal programs are outdated and should be discontinued.
C. Electricity in the Southeast will be more efficiently distributed if utilities are privately owned.
D. The price of electricity is currently higher than it would be if TVA were privatized.
E. Most residents of the Southeast prefer that TVA enter private ownership.
[Reveal] Spoiler: OA

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New post 16 Sep 2014, 02:26
Official Solution:


Utility companies in the United States are generally privately-owned, for-profit business ventures. One notable exception is the Tennessee Valley Authority, which was formed under the New Deal in the 1930s and continues, under federal control, to provide electricity to parts of the Southeast. Given the current pro-business climate in the region, however, it is safe to say that TVA is long overdue to be privatized.

The argument that the ownership of the Tennessee Valley Authority should be privatized rests on which of the following assumptions?


A. A pro-business climate demands the private ownership of utilities.
B. New Deal programs are outdated and should be discontinued.
C. Electricity in the Southeast will be more efficiently distributed if utilities are privately owned.
D. The price of electricity is currently higher than it would be if TVA were privatized.
E. Most residents of the Southeast prefer that TVA enter private ownership.


Situation: The author argues that ownership of TVA, an electric utility formed during the 1930s, should be privatized due to a pro-business climate in the region.

Reasoning: Which of the following is the underlying assumption? The author begins by stating that most US utilities are privately-owned, for-profit businesses. The Tennessee Valley Authority is contrasted to this, as a utility that is federally controlled. The reason, however, that the author argues TVA should be privatized is the pro-business climate in the region. It can be concluded, then, that the author assumes a pro-business climate should prompt privatization of the utility.
  1. Since the author connects private ownership with a pro-business climate, it can be concluded that he believes TVA should be privatized for this reason.
  2. New Deal programs are not the subject of this passage and are only relevant as they provide information about TVA.
  3. This idea is neither present nor implied in the passage.
  4. The price of electricity is not discussed in the passage.
  5. The statement in the passage is that there is a pro-business climate in the Southeast; this does not necessarily mean that most residents would prefer private ownership of TVA.

Answer: A
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Re: V05-41 [#permalink]

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New post 20 Sep 2017, 09:08
Please explain why C is wrong.
"Electricity in the Southeast will be more efficiently distributed if utilities are privately owned" so TVA should be privatized?

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Re: V05-41 [#permalink]

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New post 09 Nov 2017, 01:32
The price of electricity is not discussed in the passage.-----Why can we not consider option D as an unstated premise and hence an asumption

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Re: V05-41 [#permalink]

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New post 09 Nov 2017, 20:21
anantharaman wrote:
The price of electricity is not discussed in the passage.-----Why can we not consider option D as an unstated premise and hence an asumption
. The assumption is something not explicitly stated, but it is a *strong base to get to the conclusion there. So an unstated premise need not necessarily be the assumption. The price of electricity is not discussed in the passage itself, so it becomes irrelevant first.
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Re: V05-41   [#permalink] 09 Nov 2017, 20:21
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