Logical Reasoning

PT18 · S4 · Q15 Goodbody, Inc., is in the process of finding

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Goodbody, Inc., is in the process of finding tenants for its newly completed Parrot Quay commercial development, which will make available hundreds of thousands of square feet of new office space on what was formerly derelict property outside the financial center of the city.

Background

Goodbody's Parrot Quay (PQ) commercial development is hundreds of thousands of square feet of new office space on what used to be derelict (unused, abandoned?) property outside the financial center of the city.

The coming recession will hurt most of the city's businesses.

Surprising Claim

The coming recession should help Goodbody to find tenants.

Evaluate / Goal

We need an answer to give us a storyline that allows to understand how in the midst of a recession where most of the city's businesses will be hurting, it will be easier for Goodbody to find commercial (i.e. business) tenants for its new development outside the financial center of the city, on previously abandoned property.

Essentially, what's different during a recession vs. normal times that would make it easier for Goodbody to find tenants?

15.

Which one of the following, if true, does most to help resolve the apparent paradox?

  1. Correct

    Businesses forced to economize by

    Why this is right

    This is saying, "during a recession, businesses will need to save money and so they'll consider moving location to a cheaper area outside the financial center". Goodbody's new PQ facility is outside the financial center, so according to this answer, during a recession, businesses will be increasingly motivated to consider facilities like PQ.

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

    88% picked this

  2. Public transportation links the financial

    No Distinction

    This answer doesn't provide any difference between recessionary times and normal times, so it doesn't provide a reason why a recession would help (i.e. make it easier for) Goodbody to find tenants.

    1% picked this

  3. The area in which the

    Deepens Paradox

    This answer makes it sound like in a previous recession, the area where PQ is located did very poorly, with heavy industry closing down. So, if anything, it's giving us a reason to think that during a recession, Goodbody would find it harder find tenants, since the area where PQ is located goes dormant during a recession.

    1% picked this

  4. Many of Goodbody’s other properties

    No Impact

    We're not really interested in learning about what happens to Goodbody's other properties, recession, since we're just trying to explain why Goodbody would find it easier to rent out PQ during a recession. Are the two things connected? Would a business, who was a tenant of a Goodbody property in the financial center, who then was forced out of business during a recession, become a likely tenant for Goodbody's PQ location? No, because they were forced out of business. In choice (A), the business still has the ability to re-locate and survive. In this one, the recession kills the business, so there's no entity left that would then be renting out PQ.

    2% picked this

  5. The recession is likely to

    No Distinction

    Since service industries would be possible tenants of a building that rents office space, Goodbody would definitely be relieved to hear that service industries are unlikely to be hit hardest. (note: that's a very weak positive ... i.e. "you don't have the worst kind of cancer") The easiest way to get rid of this answer, though, is that it doesn't offer anything new that would be true during a recession that would help Goodbody. The best this answer could do for us is make it so that office space tenants, such as those from service industries, are doing as well as normal during a recession. That's not good enough for our purposes. We have to explain why Goodbody will find it easier to find tenants. The strongest version of this answer choice is only saying that during a recession, Goodbody won't find it harder to find tenants.

    8% picked this

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