Robin: When a region’s economy

Answer choices

1. A

   No Impact12% picked this

   Companies hire more workers after the economy starts to improve again, and many newly hired workers

   This states that companies hire more workers after the economy improves, but we need a way to explain how how spending initially increases when prices drop, which then leads to the improvement.

   12%
2. B

   No Impact4% picked this

   Even when economic conditions are worsening, consumers realize that the economy

   This suggests that even during economic decline, consumers anticipate future improvement, which doesn't address how immediate price collapses lead to increased spending despite high unemployment rates.

   4%
3. C

   Correct68% picked this

   Even people who do not lose their jobs spend less in bad economic times and thus have savings available

   Why this is right

   This indicates that those who retain their jobs during economic downturns tend to save money, providing them with savings to spend when prices drop, thus supporting Robin’s argument by explaining how spending might increase despite unemployment. We can say, "you're right Terry. People without jobs can't increase their spending. But people with jobs sure can!"

   Skill tested: Weaken · how this choice captures the argument's function is the move to repeat next time.

   68%
4. D

   Irrelevant14% picked this

   People who have lost their jobs must continue to buy some basic goods such as food, even

   This mentions continued purchase of essential items by the unemployed, which agrees with Terry’s view that essentials don’t influence spending on non-essentials like flat screens, leaving Robin's argument unsupported.

   14%
5. E

   Irrelevant2% picked this

   The prices of some consumer goods remain stable, even during a

   This discusses stable prices on some goods during a price collapse, not addressing the context of increased spending on reduced-priced items leading to recovery, which is Robin’s focal point.

   2%