PT148.S4.Q14

PrepTest 148 - Section 4 - Question 14

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Principle: A government should reduce taxes on imports if doing so would financially benefit many consumers in its domestic economy. █████ ██ █ ███████ ██████████ ████████ ██ ██████ █████ ██████ ██████ █████ ██ ███ ██ ████ ██ ███ ████████ ██████████ █████ ██ █████████████ ██████ ██ ███ █████ ████████████

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Summary

The author concludes that the government should not reduce taxes on textile imports. This is based on the following rule:

If one or more of a government’s domestic industries would be significantly harmed by the added competition resulting from reduced import taxes, then a government should not reduce import taxes for that industry.

Missing Connection

We have a rule that allows us to conclude the government shouldn’t reduce import taxes for textiles. To trigger this rule, we want to know that reduced import taxes for the textile industry would significantly harm the domestic textile industry.

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14.

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

a

Reducing taxes on ███████ ███████ █████ ███ ███████████ ███████ ████ █████████ ██ ███ ████████ ████████

b

Reducing taxes on ███████ ███████ █████ ███████████ ███████ ████ █████████ ██ ███ ████████ ███████ ███ █████ ███ ███████ ███ ████████ ███████ █████████

c

The domestic textile ████████ █████ ███████████ ███████████ ██ ████ ██ ███ ██████ ████████

d

The domestic textile ████████ ███ █████████ ██ ███ ████████ ███████ █████ ███████ ████ ████ ██████████ ██ █████ ██ ███████ ███████ ████ ████ █████ ████ █████ █████████

e

The added competition ████████ ██ ███ █████████ ██ █████ ██ ███████ █████ █████████████ ████ ███ ████████ ███████ █████████

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