LSAT Explanation PT 41, S1, Q13: Robin: When a region's economy is

LSAT Question Stem

Which one of the following, if true, most undermines Terry's objection to Robin's analysis? 

Logical Reasoning Question Type

This is a Weaken question. 

Correct Answer

The correct answer to this question is C. 

LSAT Question Complete Explanation

In this Weaken question, we have a dialogue between Robin and Terry. Robin presents an argument about the cycle of an economy, which can be summarized as follows:

1. When a region's economy is faltering, many people lose their jobs (Premise).

2. As a result, spending on consumer goods declines, leading to more lost jobs and a worsening of the economy (Premise).

3. Eventually, the economy becomes so bad that prices collapse (Premise).

4. The lower prices encourage people to increase spending on consumer goods, and this higher spending results in economic improvement (Conclusion).

Terry objects to Robin's conclusion, arguing that people cannot increase their spending if they have no jobs and no money for anything other than basic necessities, so price collapses cannot lead to economic improvement.

Our task is to find an answer choice that undermines Terry's objection to Robin's analysis.

To help understand the passage, imagine a simple example: A town's economy is struggling, and many people lose their jobs. As a result, they spend less on non-essential items like new clothes, leading to more job losses and a worsening economy. Eventually, the prices of clothes drop so low that people start buying them again, resulting in economic improvement.

An "Evaluate" question for this argument could be: "Do people have any disposable income to spend when prices collapse?"

Now let's analyze the answer choices:

a) Companies hire more workers after the economy starts to improve again, and many newly hired workers then make long-deferred purchases.

- This answer choice doesn't address the issue of whether price collapses can lead to economic improvement. It only discusses what happens after the economy starts to improve. Eliminate.

b) Even when economic conditions are worsening, consumers realize that the economy will eventually improve.

- This answer choice doesn't address the issue of whether price collapses can lead to economic improvement. It only tells us that consumers are aware that the economy will eventually improve. Eliminate.

c) Even people who do not lose their jobs spend less in bad economic times and thus have savings available to spend when prices collapse.

- This answer choice weakens Terry's objection by pointing out that there is a group of people who still have jobs and have saved money during bad economic times. These people can take advantage of the price collapse and increase their spending, leading to economic improvement. This is the correct answer.

d) People who have lost their jobs must continue to buy some basic goods such as food, even during bad economic times.

- This answer choice doesn't weaken Terry's objection. It only reinforces what Terry said: that people without jobs can only afford basic necessities. Eliminate.

e) The prices of some consumer goods remain stable, even during a general price collapse.

- This answer choice doesn't address the issue of whether price collapses can lead to economic improvement. It only tells us that some consumer goods' prices remain stable. Eliminate.

So, the correct answer is (C), as it weakens Terry's objection by pointing out that there is a group of people who can increase their spending when prices collapse, leading to economic improvement.