Prep2012-Pack1-CR-056 VCR000727 Hard
Pretzel vendor: The new license fee for operating a pretzel stand outside the art museum is prohibitively expensive.
Charging typical prices, a vendor would need to sell an average of 25 pretzels per hour to break even. At my stand outside city hall, I average only 15 per hour. Therefore, I could not break even running a pretzel stand outside the art museum, much less turn a profit.
Which of the following, if true, most strongly supports the pretzel vendor's argument?
A. There is currently no license fee for operating a pretzel stand outside city hall.
B. Pretzel vendors who operate stands outside the art museum were making a profit before the imposition of the new license fee.
C. The number of pretzel stands outside the art museum is no greater than the number of pretzel stands now outside city hall.
D. People who buy pretzels at pretzel stands are most likely to do so during the hours at which the art museum is open to the
E. Fewer people passing the art museum than passing city hall are to buy pretzels.
Prep2012-Pack1-CR-057 VCR000738 Hard
When a city experiences a sharp decline in population, the city's tax revenues, which pay for such city services as police protection and maintenance of water lines, also decrease. The area to be policed and the number and length of the water lines to be maintained, however, do not decrease. Attempting to make up the tax revenue lost by raising tax rates is not feasible, since higher tax rates would cause even more residents to leave.
The information given most strongly supports which of the following general claims?
A. If, in a city with sharply declining population, police protection and water line maintenance do not deteriorate, some other service previously provided by the city will deteriorate or be eliminated.
B. If a city's tax rates are held stable over a period of time, neither the population nor the levels of city services provided will tend to decline over that period.
C. If a city's population declines sharply, police protection and water line maintenance are the services that deteriorate most immediately and most markedly.
D. A city that suffers revenue losses because of a sharp decline in population can make up some of the lost tax revenue by raising tax rates, provided the city's tax rates are low in relation to those of other cities.
E. A city that is losing residents because tax rates are perceived as too high by those residents can reverse this population trend by bringing its tax rates down to a more moderate level.
