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- Thu Mar 23, 2017 2:20 pm
#33651
Complete Question Explanation
Evaluate the Argument. The correct answer choice is (A)
The author begins this stimulus with the definition of “dumping”: selling a product to an outside country at a price that is lower than the production cost. Country F’s shrimp producers are selling shrimp in Country G for a price that is lower than the production cost in Country G. Based on this premise, the author concludes that the shrimp producers from country F are “dumping” their shrimp.
So, the sellers from Country F are selling at below the price to produce in Country G, but you should also note that the author does not tell us anything about the production costs in country F, and the definition of “dumping” does not specify which “production cost” is the proper one to consider in the analysis. That is, if “dumping” just means beating the local production costs in any foreign country, then the author is correct, and Country F’s producers are indeed dumping. If, on the other hand, dumping means that the cost in the outside country must be lower than the cost of producing in the originating country, then there is no way to determine, based on the information provided, whether or not dumping is taking place in this instance.
The question stem asks for the information needed to evaluate the author’s conclusion. As discussed, in order to assess the author’s conclusion, that the country F shrimp producers are dumping their shrimp, we need a more specific definition of dumping, and whether the “production costs” refer to the costs in country F or the costs in country G.
Answer choice (A): This is the correct answer choice. As discussed above, this is the specification necessary to determine whether or not Country F’s producers are actually dumping shrimp. If “production cost” refers to the cost of producing shrimp where they are sold, then the author’s conclusion is valid, and Country F is indeed dumping shrimp. If, on the other hand, “production cost” referred to the cost of producing shrimp where they originate, then without additional information there would be no way to conclude that Country F’s producers were dumping shrimp.
Answer choice (B): Since the relevant question concerns whether or not Country F’s producers are dumping shrimp, this question about harm to the economy is not relevant to an evaluation of the author’s argument.
Answer choice (C): The author is only concerned with the notion of dumping, and the question of whether or not Country F’s shrimp producers are dumping shrimp in Country G; the relevant comparison is between the prices in Country G and the “production costs.” The prices that the Country F shrimp producers charge at home would be irrelevant to this inquiry.
Answer choice (D): The author is only concerned with whether or not the Country F shrimp producers are dumping shrimp in Country G. Since the author doesn’t discuss future prospects for the Country F shrimp producers, this choice is not relevant to the discussion in the stimulus.
Answer choice (E): It doesn’t matter whether the prices charged are slightly less or significantly less than production cost—the question whether “production cost” is measured at home, where the shrimp are produced, or in the buying country, where the shrimp are eventually sold.
Evaluate the Argument. The correct answer choice is (A)
The author begins this stimulus with the definition of “dumping”: selling a product to an outside country at a price that is lower than the production cost. Country F’s shrimp producers are selling shrimp in Country G for a price that is lower than the production cost in Country G. Based on this premise, the author concludes that the shrimp producers from country F are “dumping” their shrimp.
So, the sellers from Country F are selling at below the price to produce in Country G, but you should also note that the author does not tell us anything about the production costs in country F, and the definition of “dumping” does not specify which “production cost” is the proper one to consider in the analysis. That is, if “dumping” just means beating the local production costs in any foreign country, then the author is correct, and Country F’s producers are indeed dumping. If, on the other hand, dumping means that the cost in the outside country must be lower than the cost of producing in the originating country, then there is no way to determine, based on the information provided, whether or not dumping is taking place in this instance.
The question stem asks for the information needed to evaluate the author’s conclusion. As discussed, in order to assess the author’s conclusion, that the country F shrimp producers are dumping their shrimp, we need a more specific definition of dumping, and whether the “production costs” refer to the costs in country F or the costs in country G.
Answer choice (A): This is the correct answer choice. As discussed above, this is the specification necessary to determine whether or not Country F’s producers are actually dumping shrimp. If “production cost” refers to the cost of producing shrimp where they are sold, then the author’s conclusion is valid, and Country F is indeed dumping shrimp. If, on the other hand, “production cost” referred to the cost of producing shrimp where they originate, then without additional information there would be no way to conclude that Country F’s producers were dumping shrimp.
Answer choice (B): Since the relevant question concerns whether or not Country F’s producers are dumping shrimp, this question about harm to the economy is not relevant to an evaluation of the author’s argument.
Answer choice (C): The author is only concerned with the notion of dumping, and the question of whether or not Country F’s shrimp producers are dumping shrimp in Country G; the relevant comparison is between the prices in Country G and the “production costs.” The prices that the Country F shrimp producers charge at home would be irrelevant to this inquiry.
Answer choice (D): The author is only concerned with whether or not the Country F shrimp producers are dumping shrimp in Country G. Since the author doesn’t discuss future prospects for the Country F shrimp producers, this choice is not relevant to the discussion in the stimulus.
Answer choice (E): It doesn’t matter whether the prices charged are slightly less or significantly less than production cost—the question whether “production cost” is measured at home, where the shrimp are produced, or in the buying country, where the shrimp are eventually sold.