LSAT 118 – Section 1 – Question 04

LSAT 118 - Section 1 - Question 04

December 2004

You need a full course to see this video. Enroll now and get started in less than a minute.

Ask a tutor

Target time: 1:23

This is question data from the 7Sage LSAT Scorer. You can score your LSATs, track your results, and analyze your performance with pretty charts and vital statistics - all with a Free Account ← sign up in less than 10 seconds

Question
QuickView		 Type Tags Answer
Choices		 Curve Question
Difficulty		 Psg/Game/S
Difficulty		 Explanation
PT118 S1 Q04
+LR
Method of reasoning or descriptive +Method
Causal Reasoning +CausR
Net Effect +NetEff
A
7%
162
B
2%
160
C
88%
165
D
3%
159
E
0%
153
120
127
147
 +Easiest 148.411 +SubsectionMedium

Columnist: Analysts argue that as baby boomers reach the age of 50, they will begin seriously planning for retirement. This will lead them to switch from being primarily consumers to being savers. Thus, these analysts conclude, more money will flow into the stock market, resulting in continued gains in stock prices. Analysts would stand to gain if this were true, but they are being overly optimistic. As consumption decreases, so will corporate earnings; therefore high stock prices will not be justified, and thus boomers’ money will more likely flow into investments other than stocks.

Summarize Argument: Counter-Position
The columnist concludes that analysts who think that stock prices will rise as baby boomers start saving for retirement are being too optimistic. The columnist accepts that boomers will start consuming less to plan for retirement, but claims that lower consumption will hurt corporate earnings. This will lower stock prices, which will lead boomers to invest their savings elsewhere. So, the analysts’ prediction of an ongoing stock boom is unjustified.

Describe Method of Reasoning
The columnist argues based on the same initial factual premises as the analysts: that boomers will start saving more and consuming less as they prepare to retire. However, the columnist draws a different conclusion from these premises based on a different prediction of how boomers’ changing habits will affect the economy.

A
attempts to undermine the analysts’ argument by questioning the truth of its premises
The columnist doesn’t question the truth of the analysts’ premises that boomers will start planning for retirement, thus saving more and consuming less. The columnist just makes a different prediction based on these premises.
B
attempts to undermine the analysts’ argument by suggesting that the analysts present it for self-serving reasons
The columnist never suggests that the analysts’ argument is wrong because it’s self-serving. Sure, if the analysts were correct, they would “stand to gain,” but that doesn’t mean that they benefit from just making the argument.
C
attempts to undermine the analysts’ argument by drawing an alternative conclusion from the analysts’ premises
The columnist’s alternative conclusion, that boomers will probably not invest heavily in stocks, is indeed drawn from the analysts’ same premises. These premises are that boomers will soon start retirement planning, leading them to consume less and save more.
D
argues that the analysts’ conclusion is basically right, but suggests that it is somewhat too optimistic
The columnist doesn’t agree that the analysts are basically right. The columnist’s claims that stock prices will stay low and boomers will invest elsewhere are totally opposed to the analysts’ conclusion that boomers’ investment in stocks will create ongoing gains.
E
argues in favor of the analysts’ conclusion, but does so on the basis of a different body of evidence
The columnist simply doesn’t argue in favor of the analysts’ conclusion; nor do the two use different evidence. In fact, the columnist uses the same body of evidence to argue against the analysts’ conclusion.

Take PrepTest

Review Results

LSAT PrepTest 118 Explanations

Section 1 - Logical Reasoning

Section 2 - Reading Comprehension

Section 3 - Logical Reasoning

Section 4 - Logical Reasoning

Get full LSAT course

Leave a Reply