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Question

Direction : The critical reasoning question is based on short arguments, a set of statements, or a plan of action. For each question, select the best answer of the choices given and explain why the chosen answer is the right fit.

Statement : Being a country with significant volumes of licit and illicit drug cultivation, a transit route as well as a consumer market, India’s drug policy dilemmas span ‘demand’ and ‘supply’ control. The government has imposed strict laws to prosecute the dealers, in an effort to curb drug abuse. However, such an initiative is unlikely to be effective. Prosecuting dealers will lead to a shortage of drugs. At the same time, because no efforts are being taken to curb demand, drugs will be sold at a premium, attracting more people to the very remunerative job of drug dealing. Therefore, to effectively reduce drug abuse, the government will have to prosecute drug users and not dealers.

Which of the following is the most relevant information in evaluating the credibility of the argument?

The correct answer is

Whether the majority of the users will be willing to pay a premium to continue to use the drugs.

The question asks us to identify the most relevant information needed to evaluate the credibility of the given argument about India's drug policy and its effectiveness in curbing drug abuse.

The argument follows this line of reasoning:

  • India faces drug policy dilemmas involving both demand and supply control.
  • Government prosecutes dealers (supply control).
  • Argument claims this is ineffective.
  • Reasoning: Prosecuting dealers → drug shortage → drugs sold at a premium (because demand is not curbed) → premium attracts more people to dealing → dealer prosecution fails to reduce drug abuse.
  • Conclusion: To effectively reduce drug abuse, prosecute users (demand control) instead of dealers.

We need to find information that helps us decide if this argument, particularly the part explaining why prosecuting dealers fails, is believable.

Evaluating the Argument on Drug Dealing and Demand

The core of the argument's claim about the failure of dealer prosecution rests on the idea that reducing supply (by prosecuting dealers) will lead to higher prices (a premium) because demand remains strong. This premium, in turn, makes drug dealing very profitable and attracts new dealers, replacing those prosecuted.

Let's examine the options provided:

  • Option 1: Whether efforts have been successfully taken in any other country to regulate drug users.
    This information would be relevant to the *alternative solution* proposed by the argument (prosecuting users). However, it does not directly help evaluate the credibility of the argument's explanation for why prosecuting dealers is ineffective in the first place. The argument claims dealer prosecution fails due to specific market dynamics (shortage, premium, attracting dealers).
  • Option 2: Whether the payoffs from selling drugs outweighs the severity of the punishment.
    This information is relevant to evaluating whether the job of drug dealing is truly "remunerative" enough to attract more people despite the risks of punishment. If the risks are too high relative to the potential profit, then even a premium might not attract enough new dealers to replace the old ones. This addresses the final step in the argument's causal chain (premium attracts dealers).
  • Option 3: Whether drugs will continue to be sold at a premium when there are dealers in the market again.
    The argument posits that the premium arises *because* prosecuting dealers creates a shortage. If new dealers emerge, the supply might increase again, potentially affecting the premium. However, the argument focuses on the *initial* mechanism where the shortage creates a premium that *then* attracts dealers. Whether the premium lasts indefinitely after new dealers arrive is less critical to evaluating the argument's *initial reason* for failure than the factors creating that initial premium and attracting new dealers.
  • Option 4: Whether the majority of the users will be willing to pay a premium to continue to use the drugs.
    This information is highly relevant to a central assumption in the argument. The argument states that a premium will exist "because no efforts are being taken to curb demand." This implies that demand will remain strong even at higher prices. If users are *not* willing to pay significantly more for drugs (i.e., demand is price-sensitive), then a shortage caused by prosecuting dealers will lead to a *decrease* in the quantity demanded rather than just an increase in price. If demand drops significantly due to the price increase, the market shrinks, the 'premium' may not materialize or be sustainable, and drug dealing becomes less profitable and less attractive. This directly challenges the argument's premise that uncured demand ensures a premium exists to attract new dealers.

Option 4 directly questions a key assumption underlying the argument's explanation for the failure of prosecuting dealers: that the existing demand is strong enough (inelastic enough) to support a premium price when supply is reduced. If users are unwilling to pay the higher price, the mechanism described in the argument does not unfold as predicted, making this information critical for evaluating its credibility.

Comparing the options, Option 4 provides the most relevant information for assessing whether the stated reason for the failure of prosecuting dealers (shortage → premium → attracts dealers) is likely to happen. It tests the crucial link between reduced supply and the existence of a premium fueled by consistent demand.

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Important Questions from Critical Reasoning

  1. Directions: A statement is given followed by two inferences I and II. You have to consider the statement to be true even if it seems to be at variance with commonly known facts. You have to decide which of the given inferences, if any, follow from the given statement.

    Statement: Many students are addicted to mobile games and this leads to poor academic performance.

    Inference:

    I. Many Students are not paying attention to studies due to mobile games.

    II. It is only because of mobile games that students fail in the examination. 

  2. 'Little knowledge is a dangerous thing' is a decision based on:

  3. It is better to spend the leftovers after saving. Financial discipline and self-control can make you rich. Saving money after spending is not a good habit. Which among the following statements is true as per the statement?

    A. If you spend first then you will be spendy.

    B. If you save before spending, you will become rich.

    C. If you spend before saving, you will be poor.

    D. Saving by borrowing is a bad habit.

  4. Which of the following is the assumption for the claim that 'Pleasure is desirable'?

  5. Read the given statements carefully and answer the questions.

    Fear of danger is more dangerous than danger itself. Risk is directly proportional= to danger

    Which of the following are true according to the given statements?

    A. Fear is worse than any fearful threat.

    B. There is a trade-off between risk and danger.

    C. There should be fear of danger.

    D. There is no need to take risks to overcome any danger.

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