16Hit1600
Craft and StructureHardApplying a principle from one text to a case in another

Craft and Structure practice question

Text 1 Economist Farah Osei warns that when a city offers a subsidy to attract a company, the jobs the company later creates cannot simply be credited to the subsidy: many would have been created somewhere in the city regardless. Text 2 The city's $40 million grant to the electronics firm was a success, its mayor said, since the firm now employs 800 people at its new plant.

Based on the texts, how would Osei most likely respond to the mayor's claim?

  1. A. By asking how many of the 800 jobs would have existed in the city without the grant before calling it a success.Correct
  2. B. By agreeing that 800 jobs justify any subsidy.
  3. C. By arguing that the plant should be closed.
  4. D. By claiming that the firm employs no one.

Answer: A. By asking how many of the 800 jobs would have existed in the city without the grant before calling it a success.

Osei's principle: don't credit the subsidy with jobs that would have come anyway.

Why the other answers are wrong

B. By agreeing that 800 jobs justify any subsidy.
Osei's warning cuts against automatic credit.
C. By arguing that the plant should be closed.
Not proposed.
D. By claiming that the firm employs no one.
The 800 jobs are not disputed.

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