QUESTION TEXT: A certain credit-card company awards its customers…
QUESTION TYPE: Necessary Assumption
CONCLUSION: You can always get stuff cheaper with rewards points than in store.
REASONING: You can buy things below suggested retail price with the rewards points.
ANALYSIS: There are at least two possibilities for correct answers. First, the argument assumes that items in store never go on sale for a price far lower than the suggested price. That’s a shaky assumption; sales happen all the time.
Second, the argument assumes that consumers who use reward points don’t pay other costs, such as shipping, that raise the price of the goods above the recommended price.
___________
- This doesn’t matter. The conclusion said it would be cheaper to buy with points than to buy in store. It doesn’t matter if other credit cards offer even better deals.
- It doesn’t matter if you can buy stuff that isn’t in stores.
- The conclusion was that when you buy them with points, the goods are cheaper. It doesn’t matter what hoops you have to jump through first.
- CORRECT. If shipping costs are too high then consumers don’t save any money.
- This strengthens the argument if it’s true. The argument claims retail prices will be more expensive.
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