One state adds a 7 percent sales tax to the price of most products purchased within its jurisdiction. This tax, therefore, if viewed as tax on income, has the reverse effect of the federal income tax: the lower the income, the higher the annual percentage rate at which the income is taxed.The conclusion above would be properly drawn if which of the following were assumed as a premise?
Answer(s): A
The average age of chief executive officers (CEO’s) in a large sample of companies is 57. The average age of CEO’s in those same companies 20 years ago was approximately eight years younger. On the basis of those data, it can be concluded that CEO’s in general tend to be older now.Which of the following casts the most doubt on the conclusion drawn above?
Answer(s): C
Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch brands did not pay is that the conclusion is based on
Answer(s): E
Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.Which of the following, if true, most seriously weakens the conclusion that cigarette companies could have dropped advertising without suffering economically?
Answer(s): B
Toughened hiring standards have not been the primary cause of the present staffing shortage in public schools. The shortage of teachers is primarily caused by the fact that in recent years teachers have not experienced any improvements in working conditions and their salaries have not kept pace with salaries in other professions.Which of the following, if true, would most support the claims above?
Answer(s): D
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