PT130.S1.Q19

PrepTest 130 - Section 1 - Question 19

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Economist: Our economy's weakness is the direct result of consumers' continued reluctance to spend, which in turn is caused by factors such as high-priced goods and services. ████ ██████████ ██ ███████████ ██ ███ ████ ████ ███ ███████ ██████ ██ █████████████ █████ ████ ██ ███ ████ █████ ████ █████ ████ ██████ ██ ██ ███ █ ███████ █████████ ██ ███ ██████████ ████ ██ █████ ██████ ██████ ███ ███████ █████ ████████

Summary

A weak economy is caused by consumers not spending. Consumer aren’t spending because prices are high and incomes are low. Therefore, lowering income taxes would improve the economy.

Notable Assumptions

The argument presents a problem, explains why the problem is occurring, and then offers a solution. It does not, however, explain why the solution of lowering income taxes would actually do anything to help with the problem - there is no direct link within the argument. There is a missing assumption that lower income taxes would either address the sources of the problem or address the problem directly.

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19.

Which one of the following ██ ██ ██████████ ████████ ██ ███ ███████████ █████████

a

Increasing consumer spending ████ █████ ██████ ███ █████ ███ ████████ ██ █████████

b

If consumer spending ██████████ ███ ███████ ██████ ████ █████████

c

If income taxes ███ ███ ████████ ██████████ █████ ████ ███████ ████ ████████

d

Consumers will be ████ █████████ ██ █████ █████ ██ ██████ █████ ███ ████████

e

Lowering income taxes ████ ████ ██ ██████ ██ ██████████ █████████

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