Logical reasoning PrepTest 138 · Section 2 · Question 2

Correct. Argument or Facts:
Argument

Valid or Flawed:
Flawed

Question Type:
Argument Evaluation

Stimulus Summary:
Dumping - Selling a product abroad below production cost
Scenario - Country F is selling shrimp in Country G below G's production cost
Conclusion - Country F is dumping

Answer Anticipation:
While this question stem doesn't specifically reference a principle, this argument is very similar to a Principle/Application question, or a question where a conditional is applied to a specific case. Here, though, instead of a principle/conditional, it's a definition.

That definition involves a look at the sell price compared to the production cost. However, when it applies it to a specific case, it talks about the production costs in the country where it's being sold. Taking a look back at the definition, it's unclear if the production costs that it talks about are from the producing country or the country where it's being sold. That's key to determining if Country F is dumping shrimp in Country G, so the correct answer should address that.

Answer Explanation:
This answer brings up the ambiguity in the argument. The definition of "dumping" involves production costs, but it doesn't clarify whether those production costs are in Country F or G in this scenario. The argument, though, uses the production costs in Country G as the relevant number. We need to know if that's right before we can evaluate the argument.

Key Takeaway:
Arguments that crucially feature definitions can be approached in much the same manner as principle questions, or questions featuring a conditional that's applied to a specific scenario. Find out where the specific case mentioned falls short of meeting the definition, and the correct answer will likely deal with that.

Incorrect. There's no discussion of harm in the argument—it's just a matter of determining if Country F is dumping shrimp in Country G. That being good or bad for Country G is out of scope.

Incorrect. "Dumping" is about selling a product in other countries, and the definition doesn't involve a comparison between the selling price in the two countries, so this is out of scope.

Incorrect. This answer is wholly out of scope, as there's no discussion of going out of business or injury to a domestic industry. This answer is trying to get you to think that this is establishing that the production costs in Country F are higher than the sale price, but it doesn't directly do that and there are other ways to explain this answer.

Incorrect. The definition only cares if the sale price is under the production price, not by how much, so this answer is out of scope.