Prep2012-Pack1-CR-049 VCR005745 Medium
Reasoning
Reasoning What additional information would provide a reason to believe that the county schools wil not lose out on funding if the new sales tax is implemented? We are told that the sales tax would generate less money than the property tax does based on current retail sales. But if retail sales increase enough, the sales tax may end up generating even more money than the property tax does. Consequently, more money may be available for the schools. Therefore, look for an answer option suggesting that retail sales in the county will increase significantly.
A. However many residents have left the county, the given information states that property tax still generates more money than the sales tax would generate based on current retail sales. Therefore this answer option gives no reason to believe that switching to the sales tax would reduce funding for the schools.
B. Correct. A new shopping mall that draws shoppers from neighboring counties would likely increase Aroca County's retail sales, generating more tax money for the schools.
C. If fewer parents use the public schools, the schools may be able to cut spending and have more money left over, but that does not mean the schools will get as much money from the sales tax as they currently do from the property tax.
D. Even if many parents rent rather than own their homes and thus do not pay the property tax themselves, presumably somebody does. Who pays the tax does not affect the total amount collected and is therefore irrelevant to the argument.
E. This suggests that the sales tax would lead to higher after-tax retail prices, which would probably reduce retail sales and hence result in even less tax revenue for the schools-contrary to the conclusion drawn in the argument.
The correct answer is B.
Prep2012-Pack1-CR-050 VCR006430 Medium
Reasoning
What would suggest that OLEX's decision to keep the refinery open was motivated by financial rather than social concerns? The argument is that closing the Grenville refinery would have caused social problems but would also have reduced OLEX's refining costs, which would presumably have increased profits, other things being equal. The argument concludes that since OLEX decided to keep the refinery open, the social reasons to keep it open must have outweighed the financial reasons to close it. But if there were also financial reasons for OLEX to keep the Grenville refinery open, the social issues may not have affected the decision. Therefore, look for an answer option that suggests possible financial reasons for OLEX to have kept the refinery open.
A. This does not undermine the argument. Even if the Grenville refinery has been moderately profitable, OLEX might still be able to increase profits by consolidating its refining at the more efficient Tasberg refinery. Thus the information in this answer option does not provide a sufficient financial motivation for keeping the Grenville refinery open.
B. This suggests that OLEX had an even stronger financial reason to close the Grenville plant, not a financial reason to keep it open.
C. C By suggesting that consolidating operations at the Tasberg refinery would lower transportation costs as well as refining costs, this gives an additional financial reason to close the Grenville plant, not a financial reason to keep it open.
D. D If OLEX took pains to find new jobs for the Grenville workers and thus to mitigate the social damage from the plant closure, this would suggest that OLEX is motivated by social concerns, not merely financial concerns.
E. E Correct. Since this means it would be very expensive for OLEX to close the Grenville plant, it suggests that the decision to keep the plant open could have been motivated by financial rather than social concerns.
The correct answer is E.
