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In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.
Which of the following statements must be true for the above argument to hold?
- a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
- b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.
- c)The opinions of all the 53 economists surveyed are equally credible.
- d)Most of the claims made by the economists surveyed have been proved to be true in the past.
- e)High corporate taxes do not aid the growth of the new companies.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In a July 2011 survey of 53 prominent American economists, 65% said th...
Explanation:
The argument presented in the question is that the lack of demand is the main reason why employers are not hiring new employees, rather than high rate of corporate taxation. To support this argument, the statement that must be true is:
A) The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
To understand why this statement is true, we need to consider the relationship between corporate taxes and prices, and how they affect demand.
- Corporate taxes: When a company is subject to higher taxes, it has two options: (1) absorb the cost by reducing profits or (2) pass the cost on to consumers by raising prices. If the company chooses to raise prices, it may see a decrease in demand as consumers are less willing to pay higher prices for the same product.
- Prices: High prices can decrease demand for a product because consumers may be unwilling or unable to pay the higher price.
Based on these relationships, if higher corporate taxes lead companies to raise prices, this could lead to a decrease in demand for their products. This decrease in demand could then lead to a decrease in hiring because companies do not need to hire new employees if they are not selling as much. Therefore, if the lack of demand is due to higher prices charged by corporates for their products in order to account for the higher tax rate, then high corporate taxes could be a factor in the lack of hiring.
In conclusion, statement A is true because if higher corporate taxes do not lead to higher prices charged by corporates for their products, then the argument that lack of demand is the main reason for the lack of hiring is stronger.
The argument presented in the question is that the lack of demand is the main reason why employers are not hiring new employees, rather than high rate of corporate taxation. To support this argument, the statement that must be true is:
A) The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.
To understand why this statement is true, we need to consider the relationship between corporate taxes and prices, and how they affect demand.
- Corporate taxes: When a company is subject to higher taxes, it has two options: (1) absorb the cost by reducing profits or (2) pass the cost on to consumers by raising prices. If the company chooses to raise prices, it may see a decrease in demand as consumers are less willing to pay higher prices for the same product.
- Prices: High prices can decrease demand for a product because consumers may be unwilling or unable to pay the higher price.
Based on these relationships, if higher corporate taxes lead companies to raise prices, this could lead to a decrease in demand for their products. This decrease in demand could then lead to a decrease in hiring because companies do not need to hire new employees if they are not selling as much. Therefore, if the lack of demand is due to higher prices charged by corporates for their products in order to account for the higher tax rate, then high corporate taxes could be a factor in the lack of hiring.
In conclusion, statement A is true because if higher corporate taxes do not lead to higher prices charged by corporates for their products, then the argument that lack of demand is the main reason for the lack of hiring is stronger.
Community Answer
In a July 2011 survey of 53 prominent American economists, 65% said th...
It's a causal reasoning where qn type is assumption.
the main point mentioned here says since
65% say A Causes B
and
27% say C causes B
the conclusion can be drawn that C doesn't cause B
and the same need to be destructed by a cross reasoning and that reasoning helps me to fails apart the conclusion,will be my answer
what is the assumption here negating the conclusion
C causes B
so have to find a point which says so.
so start reading by all the statements negating
option A says
C indirectly causes A
at first glance we can't understand
but we have another argument A casues B
that implies C causes B .so what was our conclusion
C DOESN'T CAUSE B
HERE WE PROVED C CAUSES B
SO OPTION A IS A WINNER ,Still check the rest
B says low cost strategy , which cannot guarantee employee demand will be less.they can do cost reduction in other parts of company.means not clear cut answer choices
C simply states a fact , 65%+27%<100% ,that="" means="" rest="" people="" what="" say="" we="" don't="" know.so="" negating="" the="" statement="" just="" provides="" a="">
D it's not a comparison type argument so past doesn't reflect present or future kind argument is baseless.
E.negating option E ,at first my mind asks me SO WHAT , DOE'S IT NULLIFY THE CONCLUSION,NO.
so out.
OA IS A.
the main point mentioned here says since
65% say A Causes B
and
27% say C causes B
the conclusion can be drawn that C doesn't cause B
and the same need to be destructed by a cross reasoning and that reasoning helps me to fails apart the conclusion,will be my answer
what is the assumption here negating the conclusion
C causes B
so have to find a point which says so.
so start reading by all the statements negating
option A says
C indirectly causes A
at first glance we can't understand
but we have another argument A casues B
that implies C causes B .so what was our conclusion
C DOESN'T CAUSE B
HERE WE PROVED C CAUSES B
SO OPTION A IS A WINNER ,Still check the rest
B says low cost strategy , which cannot guarantee employee demand will be less.they can do cost reduction in other parts of company.means not clear cut answer choices
C simply states a fact , 65%+27%<100% ,that="" means="" rest="" people="" what="" say="" we="" don't="" know.so="" negating="" the="" statement="" just="" provides="" a="">
D it's not a comparison type argument so past doesn't reflect present or future kind argument is baseless.
E.negating option E ,at first my mind asks me SO WHAT , DOE'S IT NULLIFY THE CONCLUSION,NO.
so out.
OA IS A.
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In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer?.
In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer?.
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In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In a July 2011 survey of 53 prominent American economists, 65% said that lack of demand was the main reason why employers were not hiring new employees as compared to 27% who said that high rate of corporate taxation was the main reason. Therefore, higher corporate taxes didn’t likely lead to lower employment rates.Which of the following statements must be true for the above argument to hold?a)The lack of demand is not due to higher prices charged by corporates for their products in order to account for the higher tax rate.b)A higher corporate tax rate does not necessarily lead corporates to adopt low cost strategies.c)The opinions of all the 53 economists surveyed are equally credible.d)Most of the claims made by the economists surveyed have been proved to be true in the past.e)High corporate taxes do not aid the growth of the new companies.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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