QUESTION TEXT: Investment banker: Democracies require free-market capitalist…
QUESTION TYPE: Necessary Assumption
CONCLUSION: Those who bemoan the anticapitalistic measures in question are being hasty.
REASONING: The transition from totalitarianism to democracy requires some anticapitalistic measures.
ANALYSIS: This argument only works if the countries in question were once totalitarian. If they weren’t, then the anticapitalistic measures are also antidemocratic, because democracy requires capitalism.
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- It’s only necessary that some countries not have reached a state of complete democracy: those which are transitioning from totalitarianism.
- By this logic, the most democratic society would be anarchy. The stimulus doesn’t go that far. As long as the economy is “free-market capitalist,” democracy will be possible.
- We have no idea how common each form of government is. This is definitely not a necessary assumption.
- This is an incorrect negation. A non-free market economy is incompatible with a democracy, but the reverse doesn’t have to be true.
- CORRECT. If the countries in question were not totalitarian, then the argument is ruined. The investment banker’s evidence was only for former totalitarian countries.
Recap: The question begins with “Investment banker: Democracies require free-market capitalist”. It is a Necessary Assumption question. Learn more about LSAT Necessary questions in our guide to LSAT Logical Reasoning question types.

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