QUESTION TEXT: Finance minister: The World Bank's “Doing Business”…
QUESTION TYPE: Argument Evaluation
CONCLUSION: Our government’s “Doing Business” ranking will probably improve.
REASONING: The rankings assess the difficulty of paying taxes and complying with regulations. We have made paying taxes easier for small and midsized businesses since the last ranking.
ANALYSIS: You may have noticed that there’s something missing here. The rankings assess two things: paying taxes and complying with regulations. The minister addresses paying taxes, but only for small and midsized businesses. We don’t know about large businesses – the government may have made taxes a nightmare for them! That information would certainly help.
Secondly, the minister never addresses complying with regulations. If the government made it harder to comply with regulations, their ranking might not improve. It would also help to know this information. The correct answer will likely address one of these two things.
___________
- The rankings don’t care how often new businesses are formed. They only assess how easy it is for an already-existing business.
- It doesn’t matter if compliance has increased. We need things overall to be easier. The answer to this question won’t help us.
- This tells us something we didn’t already know, but doesn’t help us evaluate the argument. Even if it’s hard to comply with regulations, it may be easier than last year. If so, the ranking will have increased.
- CORRECT. This information would really help. If we know what size business the “Doing Business” report uses, we can assess whether these tax changes actually matter for the report.
- It doesn’t matter who the minister was. The minister isn’t graded, the country and its regulations are graded.
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