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A gas tax of one cent per gallon would raise one billion

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A gas tax of one cent per gallon would raise one billion [#permalink] New post 08 Dec 2010, 01:11
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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
[Reveal] Spoiler: OA
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 06:04
C -mthe author says rise will increase the fund avilable. He also says there will be a reduction in usage. Both contradicts
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 06:24
aimkp wrote:
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.
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 07:33
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.
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 07:49
gettinit wrote:
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....
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 10:39
Has to be C, as everyone else seems to have explained.
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Re: need help in CR to sort out doubt ?? [#permalink] New post 08 Dec 2010, 18:25
gmatin - you are correct sorry must have been typing too fast. Yes I meant C. sorry for the confusion.
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 05 Feb 2012, 10:56
C it is
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 17 Feb 2012, 13:58
I was confused between C and D and finally choose D, why is D incorrect?
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 17 Feb 2012, 14:07
Reasoning for C:

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.
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 19 Feb 2012, 21:23
+1 for C
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 19 Feb 2012, 23:38
I think the correct answer is C as it rightly mentions that the author makes incompatible assumptions.
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 14 Feb 2013, 23:04
aimkp wrote:
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


C seems to win by POE.
D is good distraction though, since mostly flaw questions mess up with cause and effect. But on close observation we can see that the cause and effect are not reversed.
Increase in taxes causes increased federal revenue.
Increase in taxes may cause people to decrease gasoline consumption.
Hence cause and effect are correctly stated.
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Re: A gas tax of one cent per gallon would raise one billion [#permalink] New post 15 Feb 2013, 06:16
Author seems to assume to polar opposite aspects of an effect.
First he considers with increase in tax budget deficit will decrease ie. he assumes people will continue buying at the same rate as they are buying now.
Second is With increase in tax , people will consume less gas and hence therefore decrease the foreign dependency on the gas..
Hence, for the same cause he assumes to polar opposite assumptions.

Hence the answer is C.
Re: A gas tax of one cent per gallon would raise one billion   [#permalink] 15 Feb 2013, 06:16
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