Question

When income tax rates are reduced, there is an increase in taxable income, and an increase in taxable income results in increased total income tax revenues for the government. Which of the following is analogous to the argument above in terms of its logical features?

• A. If the city municipal corporation increases taxes on property by 1% it will raise tax revenues, which can be used for garbage disposal management.
• B. The Leader of the Opposition at the Parliament argued that a restriction on the import of Chinese manufacturing products will increase the sales of Indian manufacturing products.
• C. An advertisement using more than 25 words of text will not be read, and when an advertisement is not read, the product is not sold. Therefore, the fewer words an advertisement has, the more effective it will be in promoting its product.
• D. The balance of payment of a country will improve if the country reduces its imports and increases exports.
• E. Citizens earning more than 15 lakh rupees per annum pay at an increased tax rate of 40% Citizens earning less than 1 lakh= rupees per annum can be exempted from paying income taxes without decreasing the revenues of the Income Tax Department

Hint:

- To spot \textbf{analogous reasoning}, first reduce the stimulus to symbols (e.g., \(A \Rightarrow B \Rightarrow C\)).
- Then pick the choice whose \textbf{form} (not topic) mirrors that structure.
- Beware of choices that merely discuss the same topic but lack the same logical chain.

Answer 1

The Correct Option is C

Step 1: Abstract the given argument. Let \(R=\) tax rate is reduced, \(T=\) taxable income increases, \(G=\) government revenues increase. The passage states \(R \Rightarrow T\) and \(T \Rightarrow G\), then informally concludes a positive outcome from the initial action (a {chain of causes}).
Step 2: Look for an option that mirrors this chained reasoning: {If \(A\) then \(B\); if \(B\) then \(C\); therefore doing/not doing \(A\) leads to \(C\).}
Step 3: Option (C) matches the structure: “More than 25 words” \(\Rightarrow\) “ad not read”; “ad not read” \(\Rightarrow\) “product not sold”; hence a recommendation that “fewer words” makes the ad effective. It links two conditional statements to a final practical conclusion, analogous in logical form to the tax-rate chain.
Step 4: Other options either introduce unrelated claims (A, B, D) or numerical policy details (E) without the same two-step causal chain culminating in a conclusion. Hence, (C) is the closest analogue.