Economist: Currently, many countries

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Stimulus

Economist: Currently, many countries rely primarily on taxing income to fund government expenditures. But taxing income does nothing to promote savings and investment. Taxing consumption, on the other hand, would encourage savings. The most important challenge facing these countries is improving their economies, to increase their savings rates. Hence, _______ .

What this question is testing

Most Supported

Your task

Break the argument into its conclusion and evidence, then do exactly what the question stem asks with that structure.

Common trap

Answers that sound relevant to the topic but don't connect to the argument's actual reasoning.

Winning move

Predict what a right answer must do, then test each choice against the conclusion-evidence gap.

Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.

The question

16.

Which one of the following most logically completes the

Answer choices

Trap1% picked this
most governments should stop taxing savings
1%
Trap10% picked this
the economies of countries will rapidly improve if their governments adopt tax policies that encourage
10%
Trap2% picked this
in most countries taxes on consumption alone could raise adequate revenues to
2%
Correct86% picked this
the tax laws of many countries should be revised to focus on taxing consumption
Why this is right
Answer D is correct.
Skill tested: Most Supported · how this choice captures the argument's function is the move to repeat next time.
86%
Trap2% picked this
it is detrimental to the economic improvement of any country to continue
2%

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