Find all School-related info fast with the new School-Specific MBA Forum

It is currently 16 Apr 2014, 16:59

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

CR

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
Joined: 26 Jan 2004
Posts: 402
Location: India
Followers: 1

Kudos [?]: 0 [0], given: 0

GMAT Tests User
CR [#permalink] New post 28 Jul 2004, 06:01
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Need explanations Please!!
Attachments

CR_4_CLUB.doc [33 KiB]
Downloaded 94 times

To download please login or register as a user


_________________

Raise, Go-ahead and Conquer

GMAT Club Legend
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4318
Followers: 16

Kudos [?]: 123 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 06:17
Quote:
In an effort to increase the number of taxicabs available during the hours from 8:00PM to 6:00AM, the Taxi Commission, which sets fares, has proposed a $1 per-ride surcharge during those hours. This is unlikely to have any effect on the availability of taxis. The fleet owners who lease cabs to drivers on a shift basis will simply raise the per-shift charge for those hours, thus eliminating any incentive for the individual driver to work the nighttime hours.

Which of the following weakens the argument above?
A) Fleet owners usually have unleased cars during the nighttime hours covered by the Commission's proposal
B) Most people who need a taxi during the nighttime hours would not mind paying the $1 surcharge
C) The majority of licensed cabs are owned by individual drivers who do not lease them from fleet owners
D) The previous year the Commission approved a 10-percent increase in taxi fares
E) Passengers would not treat the surcharge as part of the driver's tip


In order to weaken the conclusion, we have to find the answer that says taxi drivers will indeed be paid more due to the surcharge so they will indeed work longer hours. 1min. Only C says that licensed cabs are not leased so the whole amount of the surcharge will go to the taxi drivers and thus, the latter will have an incentive to work during those late hours.
_________________

Best Regards,

Paul

Manager
Manager
Joined: 02 Jul 2004
Posts: 218
Followers: 1

Kudos [?]: 1 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 06:27
Yes C, I agree with Paul

The author states that:

* the new measure will not increase the number of available taxes because...
* it will not benefit the drivers because...
* although the drivers will earn more, they will pay more to the car owners

However, if most of the drivers own their cars, then the extra dollar they earn represents an increase in their income and serves as an incentive for working at night
Senior Manager
Senior Manager
Joined: 26 Jan 2004
Posts: 402
Location: India
Followers: 1

Kudos [?]: 0 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 07:05
Can you help refuting choice (A) :oops:
GMAT Club Legend
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4318
Followers: 16

Kudos [?]: 123 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 07:24
A actually strengthens the argument as if the fleet owners have unused cars, it is because taxi owners are reluctant to use them: the latter will have no incentive to do so because they will not make any profit from it.
_________________

Best Regards,

Paul

SVP
SVP
User avatar
Joined: 16 Oct 2003
Posts: 1818
Followers: 3

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 10:38
C is my FA. However A can also be a strong contender.

For both A and C there are different assumptions. There is something said about the per ride and nothing said about the parked taxis.

Also if you assume that the parked cars will have to pay surcharge, then the car company, instead of paying surchage on no revenue, will ask the drivers to take the car at lower rate, so that they can also earn something to cover their surcharge cost. In this case the drivers will save more money.

Well if the focus were only on the drivers who own their taxi cabs, then why was there a discussion about the fleetowners. Then A.

If all conditions are considered, then C does the most torture.
Senior Manager
Senior Manager
Joined: 26 Jan 2004
Posts: 402
Location: India
Followers: 1

Kudos [?]: 0 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Jul 2004, 23:10
Thanks Paul for your comments!

What I understood from choice (A) was, if taxi owners have unleased taxis during night time, (which could either imply Taxi owners are not running the taxis at night, or they are not charging any lease amount!!!) well I took the second assumption that they are not charging any lease amount :(

But yes you are right! it has to be (C), very stupid of me to make such a dumb assumption I guess!! :oops:
Manager
Manager
Joined: 14 Jun 2007
Posts: 171
Location: Vienna, Austria
Followers: 1

Kudos [?]: 5 [0], given: 0

GMAT Tests User
Re: CR [#permalink] New post 25 May 2008, 23:59
guys...found a very ambigous one...give it a try!
Manager
Manager
Joined: 27 Jul 2007
Posts: 115
Followers: 1

Kudos [?]: 6 [0], given: 0

Re: CR [#permalink] New post 26 May 2008, 02:37
Its a straight C
Re: CR   [#permalink] 26 May 2008, 02:37
    Similar topics Author Replies Last post
Similar
Topics:
New posts CR Guest 3 28 May 2004, 08:44
New posts CR gmatblast 6 29 Jul 2004, 07:49
New posts CR harshi 8 11 Mar 2005, 14:45
New posts cr forrestgump 5 05 Aug 2005, 21:28
New posts CR FN 2 12 Oct 2005, 17:26
Display posts from previous: Sort by

CR

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.