WeakenDiff: Hardest
Logic Breakdown
Passage Summary: A professor claims that lotteries aren't a bad deal just because you lose money on average, because we also lose money on average with insurance, and everyone thinks insurance is smart.
Conclusion: The argument that buying lottery tickets is a waste of money because of low average payouts is incorrect.
Reasoning: Insurance policies also have an average payout lower than their cost, yet people generally agree that buying insurance is a wise use of resources.
Analysis: The professor is using an analogy that ignores the fundamental difference in the purpose of these two purchases. People buy insurance to protect themselves against a rare but devastating financial loss (risk mitigation), while people buy lottery tickets for a slim chance at a massive gain (risk seeking). To weaken this, look for an answer that highlights this distinction—specifically, that insurance provides a necessary safety net that gambling does not. If the benefits of insurance aren't purely about the 'average payout,' the comparison to the lottery fails.
Conclusion: The argument that buying lottery tickets is a waste of money because of low average payouts is incorrect.
Reasoning: Insurance policies also have an average payout lower than their cost, yet people generally agree that buying insurance is a wise use of resources.
Analysis: The professor is using an analogy that ignores the fundamental difference in the purpose of these two purchases. People buy insurance to protect themselves against a rare but devastating financial loss (risk mitigation), while people buy lottery tickets for a slim chance at a massive gain (risk seeking). To weaken this, look for an answer that highlights this distinction—specifically, that insurance provides a necessary safety net that gambling does not. If the benefits of insurance aren't purely about the 'average payout,' the comparison to the lottery fails.
Passage Stimulus
Passage Redacted
Unlock Full Passage19.Which one of the following, if true, most weakens the professor's argument?
Correct Answer
E
E explains a key, relevant difference: the protection insurance provides to well-being is more important than the chance of a windfall. So low average payout doesn’t make insurance unwise, but that doesn’t undermine the economists’ point about lotteries. This undercuts the professor’s comparison.
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