How can we determine in this case that such a premise is false? Must we assume all cases are based on the real world? We are to assume the premise is true so why is this premise deemed false?
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In short, we should not assume that the questions are based on the real world. You will come across premises that seem ridiculous, or obviously incorrect in reality, but a valid argument can still be made based on them. Our job is not to determine the truth of a premise. Our job is to accept premises as true, and then decide if the conclusion follows from these premises.
In the example you are referring to, I believe Mehran was making this exact point. In the real world, there are two ways to defeat an argument. First is to show that it is based on a false premise. Second is to show that the conclusion does not follow from these premises. The LSAT is a test of the second method. For this purpose, we are to accept premises as true.
