A proposal has recently been floated by the government to increase

Question

A proposal has recently been floated by the government to increase road use tax rates across the country. This will lead to an increase in operating costs for trucking companies, who will then most likely increase their freight rates. The higher freight rates will, in turn, lead to a consequent increase in the prices of goods and commodities of daily use such as vegetable and grocery items. Thus, if the proposal is passed, it will actively contribute to inflation in the country.

Which of the following, if true, most strongly indicates that the logic of the prediction above is flawed?

(A) It assumes that there is no other way in which inflation can increase apart from increased road use taxes.

(B) It mistakes a likely outcome for a confirmed outcome.

(C) It resorts to addressing peripheral issues while ignoring the deeper fundamental problems with the economy.

(D) It assumes that inflation will not increase if the road tax is not increased.

(E) It mistakes a correlation for a cause and effect relation.

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Aabhash777 · Answer

Argument's Conclusion:

Road Tax Increases > Freight Charges Increases > Inflation Increases

Answer is B as it assumes that any increase in road tax will surely increase inflation. The argument assumes confirmed scenario instead of it being a likely one.

Pranita2712 · Answer

I selected B but I was also confused between A and E. Could someone please help explain?

Bunuel · Answer

Official Explanation

Answer: B

Notice that the argument states that trucking companies will  most likely  increase their freight rates.  Most likely  does not mean that this will definitely happen. Trucking companies may have already built this increase in road use tax into their current prices, in which case they will not increase the freight rates. Then the entire argument will fall apart. So the flaw in the argument is that it assumes that a likely outcome will be a definite outcome, that is, ‘B’ is the correct answer.

(A) The argument assumes no such thing. As long as increase in freight rates can be one cause of inflation, the argument will hold true.

(B) The correct answer.

(C) The argument does no such thing.

(D) The argument does not assume this.

(E) There is no mention of correlation in the argument. The argument only talks about cause and effect relations. The question is whether this cause and effect will definitely take place?

A proposal has recently been floated by the government to increase

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A proposal has recently been floated by the government to increase

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615 to 715 in 15 Days (Ria's Strategies)

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