Express that complicated argument
in your own words.
Premise 1: Abolishing rent
control will increase the supply of housing (premise).
Premise 2: Greater supply leads to lower prices (premise).
Conclusion: Abolishing rent
control leads to lower rents (conclusion). It is a supply/demand
argument.
Try to find gaps between premises.
Look at premise 1: Abolishing
rent control will increase the supply of housing.
This premise seems reasonable. Higher profits draw increased
supply.
Look at premise 2: Greater
supply leads to lower prices.
This is a supply/demand argument; greater supply leads to
lower prices. However, there is something missing: supply and
demand require a discussion of demand. Indeed, demand is missing;
that is the hidden assumption.
SAMPLE QUESTION
There are many reasons why individuals
want to run their own businesses. Some foresee more personal
satisfaction if they are successful in launching their own business,
while others are interested mainly in the prospect of larger
financial rewards. Since the late 1970s and early 1980s, tax
regulations and other changes have encouraged increasing numbers
of venture capitalists and entrepreneurs to start new enterprises.
Since 1980, some one-half million new ventures have been started.
Not all have succeeded, of course.
The above statement makes which
of the following assumptions?
a) Success in starting a new
business depends in large part on sound financial planning.
b) Social incentives motivate
investors just as much as financial rewards.
c) Financial incentives are associated
with new business starts.
d) Most new business ventures
succeed initially but fail later on.
e) Venture capitalists are motivated
by non-monetary gains.
Explanation: While personal satisfaction
is a motivating factor, the statement shows that since 1980,
business starts increased along with a set of tax changes, promoting
financial gains. (B) is the second best answer. However, it cannot
be inferred that social motives are just as strong as the financial
motive, given that the passage states that tax regulations motivated
increasing numbers of entrepreneurs to invest. Answer choice
(A) may be correct, but there is nothing in the passage to substantiate
it. Choice (D) may be eliminated because of the word "most."
There is no evidence in the passage to support answer choice
(E). (C) is the correct answer.
w C. Strengthen
and Weaken Questions
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