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Due to a sharp rise in the price of gasoline, commuters who

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Senior Manager
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Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 04 Dec 2011, 18:38
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A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

56% (02:16) correct 43% (01:03) wrong based on 16 sessions
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.

If all of the statements above are true, which of the following is most likely to be damaged by the city council’s plan?

a) A local chain of service stations, which will see fewer customers during the daily commute.

b) Members of the bus drivers’ union, who will be forced to add more routes and work longer hours.

c) The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months.

d) Commuters who already use public transportation daily and who will face crowded conditions and travel delays.

e) Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.


Why not d?
I thought more people who used to drive to work use public transportation because of free fare of public transportation, so commuters who already use public transportation will be dameged by crowded condition.

Also, I thought that goverment will receive more tax from increased spending, and the increased tax revenue will supplement the unbalaced budget.

Did I think too much? ;;;;
[Reveal] Spoiler: OA
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Re: cr 41 gasoline [#permalink] New post 05 Dec 2011, 06:30
eybrj2 wrote:
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.

If all of the statements above are true, which of the following is most likely to be damaged by the city council’s plan?

c) The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months.

d) Commuters who already use public transportation daily and who will face crowded conditions and travel delays.

Why not d?
I thought more people who used to drive to work use public transportation because of free fare of public transportation, so commuters who already use public transportation will be dameged by crowded condition.

Also, I thought that goverment will receive more tax from increased spending, and the increased tax revenue will supplement the unbalaced budget.

Did I think too much? ;;;;


D is really out of scope because the argument here is focus on status in finance of citizens and the city. Whether public transportation is crowed or not does not affect to the standard of living.

In choice C, you think that the city increase tax, but this increase does not mention in argument. If you think that the citizen will have more savings to spend on other sectors, this does not mean that the tax revenue of the city will increase because the citizens still have the same amount of money REMAINS (approximately) after or before suspending transporation fare. Moreover, the city only stop fare of transportation to the commuter, it will lack of money. So, this event will affect adversely the city's finance
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Re: cr 41 gasoline [#permalink] New post 05 Dec 2011, 21:41
"D" is what the Powerscore CR Bible would call the Shell Game Answer. A Shell Game Answer addresses a conclusion that is very similar, but is wrong. In this case it is very attractive. The Shell Game answer addresses issues about Public Transport Riders. This is the wrong conclusion. The write Conslusion we want to weaken in this context is "In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months." Answer C directly weakens this conclusion by stating that the cities budget will take a direct hit from the plan. It can be assumed that a city budget that falls short will have negative effects on the economy. Hope that helps some!!
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Re: cr 41 gasoline [#permalink] New post 08 Jan 2012, 21:20
+1 for C.The city council wants to to forestall a slowdown in the local economy but if their budget, becomes unbalanced then the target is missed.
Re: cr 41 gasoline   [#permalink] 08 Jan 2012, 21:20
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