A gas tax of one cent per gallon would raise one billion dollars per year at current consumption rates. Since a tax of fifty cents per gallon would therefore raise fifty billion dollars per year, it seems a perfect way to deal with the federal budget deficit. This tax would have the additional advantage that the resulting drop in the demand for gasoline would be ecologically sound and would keep our country from being too dependent on foreign oil producers. Which one of the following most clearly identifies an error in the author‟s reasoning? (A) The author cites irrelevant data. (B) The author relies on incorrect current consumption figures. (C) The author makes incompatible assumptions. (D) The author mistakes an effect for a cause. (E) The author appeals to conscience rather than reason.
A gas tax of one cent per gallon would raise one billion dollars per year at current consumption rates. Since a tax of fifty cents per gallon would therefore raise fifty billion dollars per year, it seems a perfect way to deal with the federal budget deficit. This tax would have the additional advantage that the resulting drop in the demand for gasoline would be ecologically sound and would keep our country from being too dependent on foreign oil producers. Which one of the following most clearly identifies an error in the author‟s reasoning? (A) The author cites irrelevant data. (B) The author relies on incorrect current consumption figures. (C) The author makes incompatible assumptions. (D) The author mistakes an effect for a cause. (E) The author appeals to conscience rather than reason.
CONFUSE b\w A & C
IMO C.
In this CR, I see the options as, A - Cannot say that author cites irrelevant data - Increase in price by 1 cent will result in x amount. Increase in price by 50x cent will result in 50x amount - I see this is relevant. Also, price rise will reduce usage is also relevant. - Incorrect B - Cannot say this.. - Incorrect C - Assumptions are wrong - Even a 1 cent increase will reduce consumption, at the same time 50 cent increase will not reduce consumption. So the author may not be able to comment on the consumption and ecological point. D - I initially thought of this - but later realized wrong - Incorrect. E - Incorrect.
gettinit
Re: need help in CR to sort out doubt ?? [#permalink]
Answer D is correct, all others are incorrect (went for D myself initially). The author is using incompatible assumptions because the author says a 50 cent gas tax increase would help decrease the budget deficit, but then turns around and say demand will decrease and this would help the environment hence budget is not alleviated. You can't have it both ways.
gmatin2011
Re: need help in CR to sort out doubt ?? [#permalink]
Posted: Wed Dec 08, 2010 8:49 am
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Joined: Thu Nov 18, 2010 Posts: 45 Location: Richmond VA Schools: ISB, IIMA (PGPX), IIMB (EMBA) & IIMC.. Followers: 1
Answer D is correct, all others are incorrect (went for D myself initially). The author is using incompatible assumptions because the author says a 50 cent gas tax increase would help decrease the budget deficit, but then turns around and say demand will decrease and this would help the environment hence budget is not alleviated. You can't have it both ways.
Hello gettinit - you meant the answer is C? or D? - Your explanations refer to C....
USCTrojan2006
Re: need help in CR to sort out doubt ?? [#permalink]
Assumption 1: When Tax increases, the consumption remaining the same, the overall Tax collected would increase and hence the budget deficit issue resolved.
If consumption reduces, even though the Tax per Unit has increases there is no guarantee, the overall Tax will increase.
Assumption 2: When Tax increases, the consumption will reduce and hence the use of fuel and our dependency on other countries for fuel will deduce.
Assumption-1 and Assumption-2 are incomparable.
saikarthikreddy
Re: A gas tax of one cent per gallon would raise one billion [#permalink]
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