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Problem 7 - Entrance Test

Many small businesses in the city are struggling due to high operating costs. If the city government offers tax incentives to these businesses, they will be able to reduce their expenses, leading to greater profitability and economic growth for the city. Which of the following, if true, most strengthens the argument?

Correct: B

The argument proposes tax incentives to address high operating costs, expecting profitability and economic growth. Option B strengthens the initial premise by confirming that high operating costs are indeed the *primary* problem causing businesses to struggle. If this is the main issue, then addressing it with tax incentives becomes more likely to succeed. Option A provides an analogous positive outcome but doesn't directly strengthen the link between *reducing operating costs* and *profitability* for these specific struggling businesses. C is about feasibility, not effectiveness. D explains a potential consequence of the problem but not the efficacy of the solution.