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09 Feb 2026, 11:04
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A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.
Which of the following is an assumption on which the coalition’s argument depends?
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.
Which of the following is an assumption on which the coalition’s argument depends?
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.
09 Feb 2026, 11:04
Kudos
Bookmarks
Official Solution:
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.
Which of the following is an assumption on which the coalition’s argument depends?
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.
The argument says that raising tariffs on imported raw materials will revive local production because firms will switch from foreign inputs to domestic suppliers. But we are also told that imported materials are currently cheaper and more available, which explains why manufacturers prefer them today.
For the coalition’s plan to make sense, something must happen after tariffs go up that actually causes this switch. Without the switch, there is no revival. So the assumption we are looking for is the one that keeps this switching mechanism alive.
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
This may sound important at first, since competitiveness seems like a big factor. But the argument is not talking about export competitiveness at all. It is focused only on whether local production increases. Even if local firms struggle internationally, domestic production could still rise if firms start sourcing locally.
Not required. Remove this.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
This is the key assumption. The entire plan depends on manufacturers choosing to switch away from imports after tariffs rise. That choice will only happen if firms feel domestic suppliers are reliable enough to depend on. Reliability here means consistent delivery, the ability to meet demand, and a stable working relationship.
If manufacturers doubt domestic suppliers, they will not switch, even if imports become more expensive. And if they do not switch, the plan to revive local production falls apart.
C. The higher tariffs will not cause foreign governments to retaliate in ways that reduce external demand for domestically manufactured goods.
This brings up international retaliation, but the argument is not about exports. It is about increasing production inside the country. Even if foreign demand falls, firms can still produce more at home if they start sourcing locally.
D. Any short term disruptions caused by switching suppliers will not permanently reduce the willingness of manufacturers to produce goods domestically.
This sounds relevant because disruptions can affect decisions, but the wording makes it too strong. Even if some firms hesitate or are discouraged for a while, others may still switch. Revival does not require every single firm to remain fully willing or unaffected. It only requires enough firms to switch for local production to rise.
E. Replacing imported materials with domestic ones will not reduce the quality of products produced by local firms.
This is another trap. It focuses on product quality, but quality is not what the argument is about. The argument only claims that production will revive. Even if quality suffers a little, firms could still increase production volumes by switching to domestic inputs. Quality is not a required condition for revival.
Answer: B
A coalition of domestic goods manufacturers argues that higher tariffs on imported raw materials will revive local production because firms will switch from cheaper imports to marginally costlier but now tariff-free domestic inputs. However, many of these manufacturers currently depend on imported inputs because they are cheaper and more readily available.
Which of the following is an assumption on which the coalition’s argument depends?
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
C. The higher tariffs will not prompt foreign governments to retaliate in ways that substantially reduce external demand for domestically manufactured goods.
D. Any short term disruptions caused by switching suppliers will not permanently diminish the willingness of manufacturers to produce goods domestically.
E. Replacing imported raw materials with domestic ones will not reduce the quality of the products local firms manufacture.
The argument says that raising tariffs on imported raw materials will revive local production because firms will switch from foreign inputs to domestic suppliers. But we are also told that imported materials are currently cheaper and more available, which explains why manufacturers prefer them today.
For the coalition’s plan to make sense, something must happen after tariffs go up that actually causes this switch. Without the switch, there is no revival. So the assumption we are looking for is the one that keeps this switching mechanism alive.
A. Higher domestic production costs will not reduce the competitiveness of local firms in international markets.
This may sound important at first, since competitiveness seems like a big factor. But the argument is not talking about export competitiveness at all. It is focused only on whether local production increases. Even if local firms struggle internationally, domestic production could still rise if firms start sourcing locally.
Not required. Remove this.
B. Manufacturers will regard domestic suppliers as reliable enough to restructure their sourcing arrangements around them.
This is the key assumption. The entire plan depends on manufacturers choosing to switch away from imports after tariffs rise. That choice will only happen if firms feel domestic suppliers are reliable enough to depend on. Reliability here means consistent delivery, the ability to meet demand, and a stable working relationship.
If manufacturers doubt domestic suppliers, they will not switch, even if imports become more expensive. And if they do not switch, the plan to revive local production falls apart.
C. The higher tariffs will not cause foreign governments to retaliate in ways that reduce external demand for domestically manufactured goods.
This brings up international retaliation, but the argument is not about exports. It is about increasing production inside the country. Even if foreign demand falls, firms can still produce more at home if they start sourcing locally.
D. Any short term disruptions caused by switching suppliers will not permanently reduce the willingness of manufacturers to produce goods domestically.
This sounds relevant because disruptions can affect decisions, but the wording makes it too strong. Even if some firms hesitate or are discouraged for a while, others may still switch. Revival does not require every single firm to remain fully willing or unaffected. It only requires enough firms to switch for local production to rise.
E. Replacing imported materials with domestic ones will not reduce the quality of products produced by local firms.
This is another trap. It focuses on product quality, but quality is not what the argument is about. The argument only claims that production will revive. Even if quality suffers a little, firms could still increase production volumes by switching to domestic inputs. Quality is not a required condition for revival.
Answer: B
12 Feb 2026, 06:24
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Bunuel
I could not understand the reason in the explanation part why option D is wrong. In the explanation it is stated that some manufacturers may be discouraged but the rest may still switch but in the option D, only "manufacturers" have been mentioned; nothing has been indicated that all the manufacturers will not be discouraged.
I could not understand the reason in the explanation part why option D is wrong. In the explanation it is stated that some manufacturers may be discouraged but the rest may still switch but in the option D, only "manufacturers" have been mentioned; nothing has been indicated that all the manufacturers will not be discouraged.
