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In making decisions about important questions, it is desirable to be able to distinguish between strong and weak arguments. Strong arguments are those, which are both important and directly related to the question. Weak arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below are followed by two arguments each numbered I and II. You have to decide which of the two arguments is the strong argument and which is the weak argument. Statement: In a competitive market, if one firm reduces its prices then should other firms also reduce their prices? Arguments: Yes. If the other firms do not reduce their prices, they would lose customers. No. The other firms will start facing losses by reducing their prices.

In making decisions about important questions, it is desirable to be able to distinguish between strong and weak arguments. Strong arguments are those, which are both important and directly related to the question. Weak arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below are followed by two arguments each numbered I and II. You have to decide which of the two arguments is the strong argument and which is the weak argument. Statement: In a competitive market, if one firm reduces its prices then should other firms also reduce their prices? Arguments: Yes. If the other firms do not reduce their prices, they would lose customers. No. The other firms will start facing losses by reducing their prices. Correct Answer Only Argument I is strong.

In a competitive market, the customers prefer the firms which sell their commodities or services at the least prices. If a firm fails to reduce its prices when the other firms have done it, the firm loses customers and incur losses. If the other firms do not reduce their prices, they would anyway face losses so they should reduce their prices to keep their customers. Therefore, option 1 is the right answer.

Related Questions

In making decisions about important questions, it is desirable to be able to distinguish between ‘strong’ arguments and ‘weak’ arguments. ‘Strong’ arguments are those, which are both important and directly related to the question. ‘Weak’ arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below if followed by two arguments numbered I and II. You have to decide which of the arguments a ‘strong’ argument is and which a ‘weak’ argument is. Statement: Should government ban child labour? Arguments: I. Yes, because they are forced to work against their will. Lots of kids die because they work in dangerous environment. II Yes, because instead of making them work they should be educated as it is their basic right.
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In making decisions about important questions, it is desirable to be able to distinguish between strong and weak arguments. Strong arguments are those, which are both important and directly related to the question. Weak arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below are followed by two arguments each numbered I and II. You have to decide which of the two arguments is the strong argument and which is the weak argument. Statement: Should water be privatised in India? Arguments: I. Yes. Private sectors are more efficient than public sector which would lead to improved water distribution. II. No. Privatisation will make distribution of water profit centric which would increase the cost of water. Not everyone would be able to afford water at high prices.
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