QUESTION TEXT: When a nation is on the brink of financial crisis
QUESTION TYPE: Method of Reasoning
CONCLUSION: A government isn’t violating free market principles if it limits the ability to withdraw money, in order to prevent an economic collapse.
REASONING: In free speech terms, you can’t yell fire in a crowded theatre. Likewise, a financial stampede to the exits causes as much harm as a physical stampede.
ANALYSIS: Here the author uses a case of free speech rights and tries to make an analogy to what does or does not violate free market principles.
___________
- CORRECT. This matches. Free speech is limited in extreme circumstances where it causes harm, and free-market principles are limited in extreme cases where they can cause harm.
- This is different.
Example of method: There are a whole bunch of letters in spray paint on this wall. Clearly, this wasn’t an act of God. Instead, I suggest that a human using a spray paint can painted these letters. - This is different.
Example of method: I argue that things fall down towards the earth when dropped. I call this gravity. Consider the following experimental results: when I dropped your computer, it fell to the ground. When I dropped your fine china, it also dropped to the ground. And when I dropped your phone, it too fell to the ground. - This is different.
Example of method: You say that the company succeeds only when you are working. But we had a successful presentation last week, when you were on vacation. - This is different.
Example of method: Every year, we have observed that geese land in this lake in October. And it is October, and I have heard bird noises from the lake. There must be geese there.
More Resources for Method of Reasoning Questions
- Intro Course lesson: This intro course lesson covers Method of Reasoning questions.
- Mastery Seminar lesson: This LR Mastery seminar lesson covers method of reasoning questions.

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