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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 23 Feb 2008, 08:17
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C
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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.
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Re: lsat II sect. II n.5 cr - find a flow [#permalink] New post 23 Feb 2008, 09:58
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To be more precise the first part assumes demand for gas will go up and second part assumes the demand will decrease, thus conflicting interests.

regards,
Pras
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Re: lsat II sect. II n.5 cr - find a flow [#permalink] New post 23 Feb 2008, 09:55
I will go for C

To face the budget deficit, the tax on gas is being considered, if the demand for gas goes down so would the revenue generated through tax thus I will go with C incompatible assumptions.

regards,
Pras
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Re: lsat II sect. II n.5 cr - find a flow [#permalink] New post 23 Feb 2008, 10:05
prasannar wrote:
To be more precise the first part assumes demand for gas will go up and second part assumes the demand will decrease, thus conflicting interests.

regards,
Pras


excellent, really. kudo
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Re: lsat II sect. II n.5 cr - find a flow [#permalink] New post 23 Feb 2008, 10:13
C sounds good.
Re: lsat II sect. II n.5 cr - find a flow   [#permalink] 23 Feb 2008, 10:13
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