Any tax relief received by the solar industry would not : GMAT Critical Reasoning (CR)
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# Any tax relief received by the solar industry would not

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Manager
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18 Oct 2005, 12:53
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Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system. Even though homeowners would pay a lower price for solar-energy system installations because of this tax relief, with the government paying the balance, government revenues come from the public.
The argument above is based on which of the following assumptions?
(A) The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to the reduction in the price of that homeownerâ€™s solar-energy system installation.
(B) The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.
(C) Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the advantage the industry receives from the public.
(D) Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.
(E) Tax relief would encourage solar industries to sell solar-energy systems at higher prices

Exports of United States wood pulp will rise considerably during this year. The reason for the rise is that the falling value of the dollar will make it cheaper for paper manufacturers in Japan and Western Europe to buy American wood pulp than to get it from any other source.
Which of the following is an assumption made in drawing the conclusion above?
(A) Factory output of paper products in Japan and Western Europe will increase sharply during this year.
(B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers.
(C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor.
(D) Demand for paper products made in Japan and Western Europe will not increase sharply during this year.
(E) Production of wood pulp by United States companies will not increase sharply during this year.

Working shorter workweeks causes managers to feel less stress than does working longer workweeks. In addition, greater perceived control over oneâ€™s work life reduces stress levels. It can be concluded, therefore, that shorter workweeks cause managers to feel they have more control over their work life.
The argument made above uses which of the following questionable techniques?
(A) Associating two conditions as cause and effect on the basis of their being causally associated with the same phenomenon
(B) Taking for granted that two factors that have a certain effect individually produce that effect more strongly when both act together
(C) Assuming what it sets out to prove
(D) Using an irrelevant point in order to draw a conclusion
(E) Basing a conclusion on preconceived views about the needs of managers
If you have any questions
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Director
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18 Oct 2005, 13:24
1. A
(A) Best choice. Govt. subsidizes x$, consumer pays x$ less. Since consumer pays Govt. x\$ back on taxes, consumer gains nothing.
(B) out of scope
(C) out of scope
(D) 'belief' isn't the assumption
(E) Neither is 'encouragement'

2. C

Only if the two countries prefer buying, they will buy. Otherwise, even if it is cheap they won't buy it as they don't prefer it.

3. A
condition1 "Working shorter workweeks" associated with "less stress"
condition2 "greater perceived control" associated with "less stress"
Associating condition1 and condition2 on their beign related to the same phenomenon "less stress"
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18 Oct 2005, 13:29
thanks...any other guess on Q 2)
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18 Oct 2005, 13:48
Based on your comment, I presume my ans to Q 2 is wrong.
Let me revisit -
It would be B then. Only if the quality is not good, it will not be preferred even if the price is cheap.

If ans is not B, I give up!!
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18 Oct 2005, 14:37
its B....but I still agree with C
Director
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18 Oct 2005, 15:45
B is stronger than C it and comes before C, logically.

Quality -> Preference

If there is no quality, there will be no preference.
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18 Oct 2005, 17:17
Question 1

Premise:
1) Home-owners pay a lower price for solar-energy system installition because of tax relief
2) Balance of cost is paid by government
3) government revnues come from the public

Conclusion:
4) Tax relief received by solar industry would not benefit homeowner who installs solar energy system

Choice A is the best choice. It says that whatever reliefs the homeowner gets, the taxes they pay cause that amount of saving to be taken away.
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18 Oct 2005, 17:21
Question 2

C is the assumption required. If paper manufacturers always wanted to use wood pulp from US, but cost prevented them from doing so, then with the fall in the value of the dollar, they wil be encouraged to buy the wood pulp from the US.
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18 Oct 2005, 17:27
Question 3

Work short workweeks -> less stress (A->B)
Managers more stress -> Work long workweeks (!B -> !A)

Greater perceived control over work life -> reduce stress (C->D)

short workweeks -> managers more control (A->C)

I'll go with A. It associates two cause and effects (one being workweek, the other being the pereption of greater control) simply because they cause the same effect on the indiviual
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18 Oct 2005, 17:35
As for question 2, I vote for (B).

If the quality is not good, noone will buy it no matter how cheap it may be.
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18 Oct 2005, 17:47
gamjatang wrote:
As for question 2, I vote for (B).

If the quality is not good, noone will buy it no matter how cheap it may be.

B doesn't strengthen the conclusion that wood exports will go up because of devaluation of the US dollar. It does not make the connection between the price and the amount of exports.
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19 Oct 2005, 02:52
the OA for q 2) is B...but i still go for C
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19 Oct 2005, 12:08
For question 2:
sushom101 wrote:
(B) The quality of the wood pulp produced in the United States would be adequate for the purposes of Japanese and Western European paper manufacturers.
(C) Paper manufacturers in Japan and Western Europe would prefer to use wood pulp produced in the United States if cost were not a factor.

B says the wood product is of equivalent quality.
C says the US wood product is super in quality.

Stem says if the wood product is cheaper then they would buy it. This would be true as long as the wood product is of equivalent quality. It doesn't have to be superior in quality. Therefore B would be enough.
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19 Oct 2005, 12:23
Q 2 is an obvious B, Japan and western Europe won't buy from US unless the quality is comparably in addition to its cheap price.
So assumption is Obviously B.
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19 Oct 2005, 13:44
they are clearly A, B and A
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19 Oct 2005, 20:43
I got

A
C I had my suspicions that B might be it
A
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21 Oct 2005, 02:41
OA...A,B,A

thks
21 Oct 2005, 02:41
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