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Statement: The government has decided to implement a new tax on luxury imported vehicles. Arguments: I. This will discourage the purchase of foreign luxury cars and support domestic manufacturing. II. This will lead to a significant increase in the total tax revenue collected by the government. Decide which argument is strong.
Only I is strong
Only II is strong
Both I and II are strong
Neither I nor II is strong
Both I and II are strong
Evaluate arguments based on strength: Argument I is a standard policy goal (Make in India), and Argument II is a logical fiscal expectation of a new tax.
Evaluate arguments based on strength: Argument I is a standard policy goal (Make in India), and Argument II is a logical fiscal expectation of a new tax.
Analyze Argument I
Argument I is strong because discouraging imports to foster domestic growth is a recognized economic policy goal (Make in India initiative), which provides a valid justification for the government's decision.
Analyze Argument II
Argument II is strong because a new tax on luxury vehicles by definition broadens the tax base and increases revenue, which is a primary and logical objective of any new tax implementation.
A: It ignores the validity of Argument II, which is a sound fiscal justification. B: It ignores the validity of Argument I, which is a sound economic development justification. D: Both arguments are logical and directly relate to the policy's intent and outcome, making neither of them weak.
C is correct because both arguments present valid, logical reasons supporting the government's decision regarding economic protection and revenue generation.
In Statement-Argument questions, check if an argument is 'strong' by asking if it directly addresses the 'why' or 'consequence' of the action in a logical, non-absurd way.
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