When limitations were in effect on nuclear-arms testing, people tended to save more of their money, but when nuclear arms testing increased people tended to spend more of their money. The perceived threat of nuclear catastrophe, therefore, decreases the willingness of people to postpone consumption for the sake of saving money.
The conclusion of the argument is the following:
The perceived threat of nuclear catastrophe, therefore, decreases the willingness of people to postpone consumption for the sake of saving money.
The support for the conclusion is the following:
When limitations were in effect on nuclear-arms testing, people tended to save more of their money, but when nuclear arms testing increased people tended to spend more of their money.
We see that the reasoning of the argument is basically that, since there has been a correlation between increased nuclear testing and decreased saving, it can be concluded that perceived threat of nuclear catastrophe causes a decrease in people's willingness save money.
One aspect of the argument that we may notice is that it jumps from a fact about a correlation between nuclear testing and saving to a conclusion about "perceived threat of nuclear catastrophe." So, there's a clear gap in the argument.
The argument above assumes that
This is an Assumption question, and the correct answer will be something that must be true for the evidence to effectively support the conclusion.
(A) the perceived threat of nuclear catastrophe has increased over the years
This choice is a little tricky to eliminate because the argument does involve the idea that the perceived threat of nuclear catastrophe has increased at some point.
However, we can eliminate this choice through noticing that the argument is not about what has occurred "over the years." It's about what has occurred "when nuclear arms testing increased."
The fact that, when nuclear testing increased, saving decreased supports the conclusion regardless of whether the perceived threat of nuclear catastrophe has increased "over the years."
So, this choice is not an assumption on which the argument depends.
Eliminate.
(B) most people supported the development of nuclear arms
The argument is not about what people have supported. It's about the effect of the perceived threat of nuclear catastrophe.
Eliminate.
(C) people’s perception of the threat of nuclear catastrophe depends on the amount of nuclear -arms testing being done
This choice is interesting.
As discussed above, the argument uses evidence involving a correlation between increased nuclear testing and decreased saving to support the conclusion that "the perceived threat of nuclear catastrophe" causes people to be less willing to postpone consumption for the sake of saving money.
To make that jump from the correlation to the conclusion, the argument must assume that increased nuclear testing results in an increase in perception of the threat of nuclear catastrophe.
After all, if there were not such a connection between nuclear testing and threat perception, then the fact that there is a correlation between increased nuclear testing and decreased saving would not be reason to believe that perception of the threat of nuclear catastrophe causes a decrease in saving.
So, the argument works only if this choice is true.
Keep.
(D) the people who saved the most money when nuclear -arms testing was limited were the ones who supported such limitations
The argument makes sense regardless of who supported limitations on nuclear testing.
After all, regardless of who supported such limitations, the fact that, when nuclear testing increased, people saved less still supports the conclusion.
Eliminate.
(E) there are more consumer goods available when nuclear-arms testing increases
This choice weakens the argument, doing basically the opposite of what the correct answer must do.
After all, if there are more consumer goods available when nuclear testing increases, the that increase in availability, rather than a perceived threat of nuclear catastrophe, could be the cause of the increase in spending and decrease in saving when nuclear testing increases.
In other words, this choice presents an alternative explanation for the observed correlation and thus casts doubt on the conclusion.
Eliminate.
Correct answer: C