Logical reasoning PrepTest 103 · Section 3 · Question 25

Question prompt

Credit card companies justify Remaining source text redacted.
Why the credited answer is right

Credited answer: B

The notes below walk through why it fits the stem and how to eliminate the rest.

Argument or Facts

Argument

Valid or Flawed

Flawed

Question Type

Parallel Reasoning Questions / Principle Questions

Stimulus Summary

People who expose others to financial risk should pay for that risk
Blah blah blah

Answer Anticipation

First, the question type. Here, we’re tasked with taking a principle underlying an argument in the stimulus and finding an answer that also applies it. That’s akin to a Parallel Reasoning question, where we’re looking for an answer that follows the same logic as the stimulus. However, if you viewed this as a Principle (Must be True) question, there’s nothing wrong with that - especially since the principle is explicitly stated in the stimulus, and we don’t have to do any work to figure it out!
With that out of the way, let’s get into our Summary. Yep, we threw almost everything out. Why? Because the question stem has tasked us with finding an answer that invokes the principle used by the credit card companies. Since that principle is explicitly stated, it’s all we need to approach the answers.
The short version of the principle: If you expose someone to financial risk, you should pay for it. Let’s find an answer to which that applies.

Answer choices

  1. A
    School authorities should use Remaining source text redacted.
    Why choice A is not credited
    All students here are paying into the student activity fund, but only some of the students are creating the damage. First, damage isn’t risk - it’s damage. Second, this has people who aren’t doing the damage paying for it, so the principle doesn’t apply even if we equate damage and risk.

  2. B
    Insurance companies should demand Remaining source text redacted.
    Why choice B matches the stem
    Sports car drivers are putting the insurance company at financial risk in the form of more accidents requiring a claim to be paid. The principle in the stimulus justifies making them pay for that risk, as this answer states. It is therefore the correct answer.

  3. C
    Libraries should charge high Remaining source text redacted.
    Why choice C is not credited
    There’s no one creating financial risk for others here - just the risk of inconvenience.

  4. D
    Cities should impose high Remaining source text redacted.
    Why choice D is not credited
    Here, people are being fined after they’ve littered, not because they’re creating risk of some financial issue. There’s also no indication that littering has a financial element to it.

  5. E
    Municipalities should use tax Remaining source text redacted.
    Why choice E is not credited
    This answer doesn’t bring up economic risk at all, making it out of scope of the principle.

What this tests

Question analytics

Based on historical answer selection rates for this question.

Answer choice distribution

  1. A 11%
  2. B Credited 57%
  3. C 28%
  4. D 2%
  5. E 2%

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Discussion

  • Why not B? 1 reply

    Started by Williamg

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