LSAT (Law School Admission Test)Logical ReasoningMedium
Economist: The government's new tariff on imported steel will undoubtedly lead to higher domestic steel prices. Domestic steel producers, facing less competition, will raise their prices, and consumers will ultimately bear the cost. Therefore, the tariff will harm the economy. Which of the following is an assumption required by the economist's argument?
- AThe increase in domestic steel prices will not be offset by other economic benefits.
- BThe government's primary goal is to protect domestic steel producers.
- CConsumers will not find alternative materials to steel that are cheaper.
- DDomestic steel producers are currently struggling to compete with imported steel prices.
Show answer & explanationAnswer & explanation
Correct answer: A. The increase in domestic steel prices will not be offset by other economic benefits.
The economist concludes that the tariff will harm the economy based solely on higher steel prices. For this conclusion to hold, the argument must assume that these higher prices are not outweighed by any positive economic effects, such as increased domestic production or employment.
Why the other options are wrong
- B. The government's motivation is irrelevant to the logical chain presented by the economist regarding the economic impact of the tariff.
- C. This is a plausible outcome but not a *required* assumption for the economist's specific chain of reasoning from tariffs to higher prices to economic harm. Even if alternatives exist, the argument about higher steel prices still stands.
- D. While possibly true, this is background information, not a necessary assumption for the conclusion about harm to the economy from higher prices.
Assumptions in Arguments
An assumption is an unstated premise that must be true for the conclusion to logically follow from the stated premises. It's a missing link in the argument's chain of reasoning.
- An assumption is always unstated.
- If an assumption is false, the conclusion cannot be true.
- Can often be found by identifying gaps in the argument's logic.
Memory trick: Find the missing piece that makes the conclusion stick.