Financial Analyst: The manufacturing sector in Country X will likely experience a severe contraction this year. The global price of refined rhodium, a catalyst essential for the advanced electronics manufactured almost exclusively in Country X, has tripled in the past six months. Because manufacturers in Country X operate on very thin profit margins, they cannot absorb this cost increase without significantly raising their prices, an action that will inevitably cause a drastic drop in their sales volume.
Which one of the following is an assumption on which the financial analyst's argument depends?
- The production of advanced electronics accounts for a large enough proportion of Country X's manufacturing sector that a drastic drop in their sales would cause a severe contraction in the sector as a whole.Cevap
- BCountry X's manufacturing sector produces no goods other than advanced electronics.
- CIf the global price of refined rhodium had not tripled, Country X's manufacturing sector would not be facing a severe contraction this year.
- DManufacturers of advanced electronics in other countries will not experience a similar increase in their raw material costs.
- EThe drastic drop in sales volume will force the majority of advanced electronics manufacturers in Country X to permanently close their businesses.
Cevap
The production of advanced electronics accounts for a large enough proportion of Country X's manufacturing sector that a drastic drop in their sales would cause a severe contraction in the sector as a whole.
The argument commits a classic part-to-whole scope shift. The premises provide evidence that one specific industry—advanced electronics—will suffer a drastic drop in sales. However, the conclusion claims that the entire 'manufacturing sector' in Country X will experience a severe contraction. For this conclusion to be valid, the author must be assuming that the advanced electronics industry is significant enough to drag down the whole sector. Applying the Negation Test confirms this: if advanced electronics accounted for only a tiny fraction of the manufacturing sector, a drop in their sales would not cause the entire sector to contract, completely destroying the argument.
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Bridging Part-to-Whole Scope Shifts and the Negation Test
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