Logical Reasoning

PT133 · S3 · Q7 Economic growth accelerates

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Economic growth accelerates business demand for the development of new technologies.

Information

causal (X accelerates Y)

Econ growth → more demand for new tech

comparison (few vs. many)

Lots of companies want to buy the new tech. Only a few businesses can supply the new tech.

pivot (Yet) causal (X can cause Y)

Accelerated tech change can cause suppliers and buyers of new tech to fail.

Evaluate

When we see multiple causal claims (just like with conditionals), we want to ask ourselves whether they chain together.

It's possible here to construe a sort of causal chain:

1st, econ growth accelerates demand for new tech 2nd, an acceleration of new tech leads to supplies / buyers of new tech failing

We could pull out of that the "1 to 3" connection, that (i.e. the buyers / suppliers of new tech)

Does the middle sentence have any value? Does it tell us anything that there will be a few businesses who have the new tech, and many who want it?

We can use our common sense about supply and demand to think that if demand outpaces supply, then the price of new tech will likely be high.

Goal

It's hard to predict what the answer will be, but if they were rewarding us for finding a causal chain, then maybe something like .

Ultimately, we'll pick the most provable answer we can find.

7.

Which one of the following is most strongly supported by the information above?

  1. Businesses supplying new technologies are

    Unknown Comparison

    The paragraph never makes any comparison to other businesses, so we have no ammunition for saying businesses that don't supply new tech are less likely to prosper. We're also told that suppliers of new technologies can fail in times of accelerated technological change, so we have some counter evidence to this answer.

    1% picked this

  2. Correct

    Businesses that supply new technologies

    Why this is right

    This is saying there might be a business that supplies new technology that does not benefit from economic growth. This is rewarding us for finding that causal chain we found! When there's economic growth, it accelerates the demand for new tech. And an acceleration of new tech can cause suppliers of new tech to fail. So a supplier of new tech can fail as a result of economic growth. Thus, businesses that supply new tech may not always benefit from economic growth.

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

    92% picked this

  3. The development of new technologies

    Reverse Causality

    We can't support this sort of causal relationship. We were only told that economic growth can accelerate the development of new technologies.

    1% picked this

  4. Businesses that adopt new technologies

    Too Strong: most likely

    This is too extreme, based on the facts we were given. We have no idea when businesses that adopt new technologies are most likely to prosper. We're even told in the final sentence that buyers of new technology can fail as a results of accelerated technological change, which is an effect of economic growth.

    1% picked this

  5. Economic growth increases business failures.

    Too Strong

    The final sentence alerts us that economic growth can cause some business failures. But this answer is stated in a way that's claiming "overall, there are more business failures during a time of economic growth then during a time of economic stagnation or contraction". Not only is that not supportable by the text, it goes against common sense. Economic expansions generally mean that businesses are doing better, while economic recessions usually mean that businesses are doing worse.

    5% picked this

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