Passage Summary: The school lost money and says they have to either fire people or lower pay; since they aren't firing anyone, they claim they have no choice but to lower pay.

Conclusion: The university is forced to reduce the salaries of its faculty members.

Reasoning: A budget reduction is necessary due to a revenue drop, and the administrator presents only two options—cutting jobs or cutting pay—then eliminates the first option.

Analysis: The administrator falls into the 'false dilemma' trap by assuming that cutting positions and cutting salaries are the only two possible ways to reduce a budget. In reality, a university could cut administrative costs, travel budgets, or fancy campus landscaping instead. The logic fails because it treats a limited list of options as exhaustive without proving no other alternatives exist. We should look for an answer that points out this failure to consider other ways to save money.