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655-705 (Hard)|   Assumption|      
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nightblade354
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Investment Banker: Democracies require free-market capitalist 01 Dec 2018, 11:06
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65% (hard)

Question Stats:

60% (02:20) correct 40% (02:28) wrong based on 678 sessions

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Investment Banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.

Which one of the following is an assumption required by the investment banker's argument?

A) No current government has reached as complete a state of democracy as it is possible for a government to reach

B) The more democratic a country is, the less regulated its economy must be

C) The need for economic stability makes the existence of partially democratic governments more probable than the existence of fully democratic governments

D) A free-market economy is incompatible with a nondemocratic regime

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past
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E
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Investment Banker: Democracies require free-market capitalist 01 Dec 2018, 11:29
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IB: Non-democratic legislation might be a step into the direction of free market economy and democracy, given that the respective country is transitioning from a totalitarian to a democratic form of government.

It is our task to identify an assumption which supports that statement and answer choice E seems well suited:

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past

Past totalitarian regime => Need for transition => Justification for "uncapitalistic" legislation
This provides a solid foundation for the premise.

Hope this helps.

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Chris
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Investment Banker: Democracies require free-market capitalist 21 Mar 2020, 07:26
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IB: Non-democratic legislation might be a step into the direction of free market economy and democracy, given that the respective country is transitioning from a totalitarian to a democratic form of government.

It is our task to identify an assumption which supports that statement and answer choice E seems well suited:

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past

Past totalitarian regime => Need for transition => Justification for "uncapitalistic" legislation
This provides a solid foundation for the premise.

Hope this helps.

Regards,
Chris
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I had rejected E because it spoke of totalitarian regimes in the past while the conclusion talks of actions that governments are "currently" talking. E could also a situation where while the government was totalitarian in the past but are no longer when the anti-capitalist measures are being taken by the government. Can anyone shed light on this? I'm confused.
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Investment Banker: Democracies require free-market capitalist 21 Mar 2020, 08:52
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Arro44
IB: Non-democratic legislation might be a step into the direction of free market economy and democracy, given that the respective country is transitioning from a totalitarian to a democratic form of government.

It is our task to identify an assumption which supports that statement and answer choice E seems well suited:

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past

Past totalitarian regime => Need for transition => Justification for "uncapitalistic" legislation
This provides a solid foundation for the premise.

Hope this helps.

Regards,
Chris

I had rejected E because it spoke of totalitarian regimes in the past while the conclusion talks of actions that governments are "currently" talking. E could also a situation where while the government was totalitarian in the past but are no longer when the anti-capitalist measures are being taken by the government. Can anyone shed light on this? I'm confused.
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E) The nations whose anticapitalistic measures the people in question bemoan HAD totalitarian regimes in the past

CONCLUSSON: "People who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty." WHY?
PREMISE: Repressive measures against capitalistic developments are required DURING the transition from a totalitarian regime to a democracy.

Here we see a logical gap. "Certain governments" in the conclusion must be DURING the transition from totalitarian regimes to democracies.
I think in Assumption questions, we should ALWAYS use the negation technique when we have come to a few remaining answer choices. If you negate (E), it becomes as follows: "The nations whose anti capitalistic measures the people in question bemoan DID NOT HAVE totalitarian regimes in the past." If so, these nations can not be currently in the TRANSITION from totalitarian regimes to democracies." Then repressive anticapitalistic measures DO NOT apply to those countries. This breaks down the Conclusion. Hence, (E) is incorrect.
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Investment Banker: Democracies require free-market capitalist 08 Jan 2024, 09:49
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Investment Banker: Democracies require free-market capitalist economies, because a more controlled economy is incompatible with complete democracy. But history shows that repressive measures against capitalistic developments are required during the transition from a totalitarian regime to a democracy. Thus, people who bemoan the seemingly anticapitalistic measures certain governments are currently taking are being hasty.

Which one of the following is an assumption required by the investment banker's argument?

A) No current government has reached as complete a state of democracy as it is possible for a government to reach - WRONG. An extreme situation that is not necessarily true.

B) The more democratic a country is, the less regulated its economy must be - WRONG. No relation as such is found nor required for the passage.

C) The need for economic stability makes the existence of partially democratic governments more probable than the existence of fully democratic governments - WRONG. Nothing wrong as such but the red text is questionable.

D) A free-market economy is incompatible with a nondemocratic regime - WRONG. A big claim not necessarily true.

E) The nations whose anticapitalistic measures the people in question bemoan had totalitarian regimes in the past - CORRECT. If not then bemoaning makes sense.

For me only C and E were of any significance. Unfortunately, chose C. Thus, choosing is bad.
The bigger factor to consider is that it is talking about transition in which nothing is absolute. And this is where C falls apart, only slightly though.
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