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Difficulty: MediumIdentifying Necessary Assumptions

Agricultural Economist: In our region, the new drought-resistant wheat variety produces the exact same yield per acre as traditional varieties. However, in the three years since all regional farmers switched to this new variety, their average net income has decreased. Since the yields have remained consistent, cultivating the new drought-resistant wheat variety must involve higher production costs per acre than cultivating traditional varieties.

The statement 'The market price for wheat has not decreased significantly over the past three years' functions as a necessary assumption of the economist's argument.

Answer: Answer

Answer

True
The statement correctly identifies a necessary assumption. By stating that higher costs 'must' be the reason for the decreased net income, the economist assumes that other variables determining net income—specifically, the market price of the wheat—have not caused the decline. Negating the statement provides an alternative explanation that completely undermines the conclusion.

Step-by-Step Solution

1
Identify the argument's core structure (premises and conclusion).
Conclusion: Cultivating the new wheat variety must involve higher production costs. Premises: Yield per acre is the exact same, but average net income has decreased.
Isolating the conclusion and premises makes it easier to spot the logical leap or missing link.
2
Analyze the conceptual relationship between the components of the argument.
Net income is a function of revenue (yield × price) minus costs. The economist observes a drop in income and constant yield, then jumps straight to blaming higher costs.
Exposing the mathematical or logical relationship reveals unstated factors, such as market price, that also affect the outcome.
3
Apply the Negation Technique to the provided statement to test for necessity.
Negated statement: 'The market price for wheat HAS decreased significantly.' If true, the decreased price alone explains the lower income. The conclusion that costs 'must' be higher falls apart.
The Negation Technique is the definitive test for a necessary assumption. If negating the statement destroys the argument, the statement is an absolute requirement.

Key Concept

Identifying Defender Assumptions (Ruling out alternative explanations)
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Topics

Identifying Necessary Assumptions

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