Logical Reasoning

PT124 · S2 · Q5 In the city of Glasgow

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In the city of Glasgow, Scotland, trade doubled between 1750, when the first bank opened there, and 1765, when government regulations on banking were first implemented in Scotland.

Given that ..

The first bank in Glasgow opened in 1750,

Why is it that ...

Trade doubled between then and 1765 (when government regulations were first implemented?

Evaluate

This is a weird stimulus because it's not really a Paradox, as we typically expect when the question stem asks us to explain something.

It's really just, "Explain why trade doubled between 1750 and 1765". The only thing we know is that the first bank opened in 1750, so explanation answers could help us understand how a bank opening would lead to twice as much trade.

But the explanation for the doubling of trade doesn't need to be due to the first bank opening. We could also just hear about something else that changed near 1750 that could cause an increase in trade.

The government regulations part in 1765 doesn't seem relevant to anything. We're only trying to explain the doubling, which takes place between 1750 and 1765. We don't care what happens to Glasgow from 1765-onward.

The only way the 1765 regulations could be relevant would be if people knew in the 1750-1765 period that these regulations were coming and that caused their trading behavior to increase.

Goal

Get rid of four answers that can give us a potential storyline for why trade doubled between 1750 and 1765 in Glasgow.

Each of the following, if true, could contribute to an explanation of the doubling described above EXCEPT:

The technological revolution that started
Helps Explain
This answer tells us that in the early 1700's, there was a technological revolution that resulted in increased trade between England and Scotland. Could that contribute to an explanation for why trade in Glasgow, Scotland doubled between 1750 and 1765? Sure. If this technological revolution resulted in higher levels of trade between England and Scotland, then part of why trade doubled between 1750 and 1765 could be from the increased trade with England brought about by this tech revolution.
22% picked this
Reductions in tariffs on foreign
Helps Explain
This answer tells us that in 1752, they reduced the tariffs on foreign goods, leading to an increase in imports to Glasgow. So this could also contribute to why trade doubled between 1750 and 1765 in Glasgow.
4% picked this
The establishment of banking in
Helps Explain
The establishment of banking in Glasgow happened in 1750, and it "made financial transactions more efficient". The more efficient financial transactions are, the more trade can potentially happen in a given period of time. So this could help explain why trade doubled from 1750 to 1765.
8% picked this
Improvements in Scottish roads between
Helps Explain
This answer tells us that between 1750 and 1758, "improvements in roads in Scotland facilitated trade". So that can help explain why trade increased from 1750 - 1765.
3% picked this
Correct
The initial government regulation of
Why this is right
As we may have suspected, this answer tries to use the irrelevant detail about the initial government regulations which began in 1765. Who cares what these regulations stimulated? Anything stimulated by the 1765 regulations will have effects that take place post-1765. Since we're trying to explain what was happening from 1750 - 1765, this answer is totally irrelevant.
Skill tested: Paradox · how this choice captures the argument's function is the move to repeat next time.
64% picked this

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