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Correct Answer: E
In answering this question, we must keep separate revenue and profit. Further, we must separate revenue from all other aspects of the business. It is important to keep in mind that MicroChip's efforts are aimed at increasing revenue so any assumption that does not pertain to revenue is almost certainly unnecessary.
A. This answer addresses "enabling the firm to survive in the long-term." However, the original argument deals with "an attempt to abate the pernicious decline in Microchip’s revenue." In other words, this answer deals with the ability of the firm to survive in the long-term and retain customers instead of addressing how the company will increase its revenue (which is different from the number of customers or the level of profitability). It is not necessary to make an assumption about long-term survival in order to make a conclusion about increasing revenue.
B. Even if there were other companies with lower prices, as long as the other companies do not further lower their prices, it will not affect MicroChip's ability to increase its demand and revenue. Further, the original argument only deals with MicroChip's attempt to increase its revenue. In other words, the original argument deals with MicroChip's ability to raise its revenue on absolute terms€”not its ability to raise revenue more than rivals. It is not necessary to make an assumption about other firms' prices in order to make a conclusion about increasing MicroChip's revenue.
C. Although this would improve MicroChip's revenue, it is not a necessary assumption underlying MicroChip's strategy of offering a discount as the company did not need to offer a discount to increase revenue if it assumed the government would stimulate demand on its own. In other words, if MicroChip assumed the government would stimulate demand, MicroChip would not have offered a discount for the discount would not have been necessary.
D. This answer does not address an assumption that underlies increasing revenue, but rather legality. Further, the answer does not state that MicroChip's actions violate a law. Finally, even if the government pursued charges, this would not necessarily decrease revenue (although it would certainly decrease profit as MicroChip would incur legal fees etc.).
E. This answer contains the assumption that directly relates to MicroChip's attempt to increase its revenue. In order for the decrease in price to increase total revenue, the volume of sales must increase as total revenue equals price multiplied by volume.

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Correct Answer: C
E-News argues that its subscription service will eliminate the presence of all ads for individuals attempting to read the news. The advertisement implies that this is appealing to news readers since it saves them time. However, there are possible problems with this argument. For example, if ENews partnered with other online content providers, who themselves served up ads, the user would not truly avoid advertisements and would still waste time "seeing and ignoring advertisements while attempting to read."
A. This answer pertains to enjoying reading a news website while the original argument centers on avoiding the "wasted time" that comes from seeing and ignoring advertisements.
B. The original argument centers around "wasted time" not volume of content. Consequently, this answer weakens a point (volume of content) that serves as no support or justification for the original argument (which is based upon "wasted
time").
C. Since users of E-News will not be able to entirely (or perhaps even considerably) "eliminate wasted time that results from seeing and ignoring advertisements" since these ads will be part of the online newspaper reading experience through the content network, the argument that users should sign up in order "to eliminate" ads is weakened.
D. This answer does not weaken the crux of the original argument (i.e., avoiding ads eliminates "wasted time"). The original argument is not weakened, it is simply deemed irrelevant to a certain portion of the country.
E. This does not weaken the argument about the user's experience and ability to save time with E-News. The original argument pertains to signing up with ENews in order to save time and this answer does not pertain to signing up with ENews

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Correct Answer: B
The paradox: After a government recall of some peanut butter, shoppers indicated that they would not change their peanut butter purchasing habits. However, same-store-sales of peanut butter subsequently fell dramatically. Since consumers did not publicly signal any intention to change their behavior, another explanation must exist. Multiple possible explanations exist: the stores voluntarily removed peanut butter, subsequent and more damaging information about peanut butter contamination became public, or consumers responded to the survey in a biased manner (e.g., denying that they will change their purchasing habits so as to appear as if they never fell for purchasing contaminated products).
A. This answer heightens the paradox by making the subsequent fall in sales of peanut butter even more unexplainable since a price cut would have stimulated sales (not provided an explanation for their decline).
B. This answer identifies a correct explanation for the paradox. With stores fearful about lawsuits, they removed peanut butter and consequently "same-store sales to customers fell."
C. Although a tabloid is a much less respected source than a leading newspaper, the fact still remains that the article appeared in a leading newspaper. Further, the source of the news does not explain the discrepancy between individuals' stated intent to continue purchasing peanut butter and the subsequent poor sales figures. If the tabloid as a source were a problem, it would only further increase the paradox over why sales declined (why would consumers seemingly base their decisions upon a tabloid).
D. When the individuals took the survey where they stated their intent to continue purchasing peanut butter, they knew about the op-ed piece as it appeared "days before the newspaper conducted its survey." Consequently, the op-ed cannot explain individuals' switch in behavior (i.e., intending to purchase peanut butter but then deciding not to).
E. The original argument notes that "the country's peanut butter manufacturers" (i.e., every manufacturer accounted for—not limited to the specific type of peanut butter recalled) reported a drop in sales. Although consumers' intention to change the type of jelly and bread they purchased could imply that consumers would change the type of peanut butter they purchased, it does not explain why sales would virtually stop altogether. There is a difference between changing the type of jelly purchased (and by correlation, the type of peanut butter purchased) and stopping purchasing jelly altogether (and by correlation, stopping purchasing peanut butter altogether).

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Correct Answer: A
The political commentator's argument is: "tax cuts will not help the country escape from its current economic troubles. The commentator's evidence for this is the failure of the past administration's tax cuts to prevent the economic recession.
A. This answer identifies that the argument illogically compares apples and oranges (i.e., it compares entirely different types of tax cuts). It is not reasonable to assume that capital gains tax cuts for the ultra-rich will have the same effect as cuts on salary taxes.
B. This answer does not weaken the political commentator's argument since the tax cuts referred to occurred under such radically different circumstances. Further, this answer simply states that tax cuts "helped stem" a recession while the commentator states that tax cuts will "help the country escape" from a recession. Simply helping stem (or slow down) a recession is considerably different (and less impressive) than actually turning around an entire economy in recession.
C. This answer notes that a piece of legislation is widely considered essential to escaping the current recession. However, it does not break down what in the legislation is considered essential (is it tax cuts alone, in which case the commentator's argument is undermined or is it government spending alone, in which case the commentator's argument is strengthened or is it both). Without more information, it is impossible to ascertain whether the economists feel the tax cuts currently being proposed will be simulative, anti-simulative, or neither.
D. The political commentator's argument pertains to the tax cuts ability to "help the country escape from its current economic troubles" not the tax cut's effect on the government deficit. Consequently, the effect on the deficit has no bearing on the argument about tax cuts and economic recovery.
E. This answer explicitly states that the campaign contained "many deceptive" political attacks and arguments. Consequently, the credibility of the governor's claim is severely questioned. Further, even if the governor's comments were true, we cannot conclude that the correlation between his state's prosperity and his tax proposals also has a causal relationship (i.e., we cannot conclude that the governor's philosophy of tax cuts caused the state to be prosperous). In other words, correlation does not imply causation. Further, the macroeconomic dynamics of a state are different than the macroeconomic dynamics of a country.

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Correct Answer: E
The researchers' conclusion is: "habitual smoking causes increased difficulties in concentrating" The group of researchers confuses correlation with causation. In other words, the group concludes that a correlation between smoking and an inability to concentrate implies that smoking causes an inability to concentrate. Perhaps it is the other way around and an inability to concentrate causes individuals to become distracted and take up smoking. Evidence to support this counter theory would weaken the researchers' conclusion.

 A. This answer strengthens (not weakens) the original argument as it provides an explanation for how habitual smoking increases difficulties in concentrating afterbecoming hooked.
B. The answer deals only with some ADD non-smokers and some smokers so it does not provide any solid evidence and justification to weaken or reject the original argument. Further, it is not logical to compare the concentration ability of individuals with an attention deficit condition to other individuals who do not have an attention deficit condition.
C. The incarceration rate is irrelevant in determining the relationship between concentration and smoking. Whether smokers are incarcerated at higher or lower rates does not enable us to strengthen or weaken the causal relationship between smoking and concentration proposed in the original argument.
D. This strengthens (not weakens) the original argument as it intensifies the causal relationship between smoking and subsequent difficulties concentrating.
E. This additional study pinpoints that individuals with preexisting (or already established) concentration difficulties subsequently became addicted to smoking. This pinpoints that the smoking could not have caused the attention and concentration difficulties (as these difficulties already existed prior to becoming addicted).