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

 It is currently 30 Nov 2015, 11:26

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Lawmaker: Raising taxes is not the only means of reducing

 Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:
Manager
Joined: 17 Oct 2008
Posts: 196
Followers: 1

Kudos [?]: 17 [0], given: 11

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  12 Jul 2010, 01:35
Should be D.

I dont see any use in assuming A.

Argument says says. govt can sell the helium and clear its debt..irrespective of whether govt needs it or not.

But what if the price fall when govt tries to sell, this clearly weakens the argument. And we need this assumption to defend the conclusion.
Manager
Joined: 24 Aug 2008
Posts: 230
Location: India
WE 1: 3.75 IT
WE 2: 1.0 IT
Followers: 2

Kudos [?]: 42 [0], given: 5

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  12 Jul 2010, 01:44
Answer should be D..
What is OA??
_________________

Cheers,
Varun

If you like my post, give me KUDOS!!

Manager
Joined: 24 May 2010
Posts: 69
Followers: 1

Kudos [?]: 17 [0], given: 4

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  12 Jul 2010, 04:56
i feel the answer is b.. This is the assumption if not taken will fail the conclusion of the total debt part. I may be wrong though
Manager
Joined: 16 Jun 2010
Posts: 171
Followers: 3

Kudos [?]: 32 [0], given: 1

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  13 Jul 2010, 06:04
D . Well if govt is not using it then better it sells it off and invests the money or fill balloons with the gas.

Its not about the need here as said in A.

Plz tell OA, if it exists
_________________

R E S P E C T

Finally KISSedGMAT 700 times 450 to 700 An exprience

Manager
Joined: 10 Feb 2008
Posts: 90
Followers: 1

Kudos [?]: 12 [0], given: 2

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  13 Jul 2010, 10:49
after negating B, argument falls apart . So, B
_________________

-------------------------------------------------------------------------------------------
Amar
http://amarnaik.wordpress.com

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 5933
Followers: 607

Kudos [?]: 116 [0], given: 0

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  04 Nov 2015, 10:18
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Manager
Joined: 14 Apr 2015
Posts: 79
Followers: 0

Kudos [?]: 7 [0], given: 46

Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink]  24 Nov 2015, 17:41
aielman wrote:
I would go with option A.

Option D, though appealing has a fundamental mathematical pitfall.

Lets say the buy price of the Govt is 100$for 10 units therefore the total cost of accruing the helium is 1000$, now the current market price is 125$for each unit. Now 24% of 125$ would be 30$. If the market value of helium decreases even by 24%, the net selling price of one unit of helium would be 95$. If the government sells 9 units of helium at this price and 1 unit at 125$, the total amount it would gain is 95*9 + 125*1 = 980$ (this is the worst case scenario).
Still running a debt of 20\$.

So i guess option A is the only one that holds, cos a proposition to sell the helium is made iff the govt has no current need for it.

The math is good. But, the argument depends on the fact that government ought to sell the He at market price only. So, the 1 unit 125 is not possible. It has to sell all units at 95 only. Anyways, A was close for me too. If govt. has no current need, it might sell He. If it has need, it won't sell He. But, A doesn't address the money thing, while D does.
Re: Lawmaker: Raising taxes is not the only means of reducing   [#permalink] 24 Nov 2015, 17:41

Go to page   Previous    1   2   [ 27 posts ]

Similar topics Replies Last post
Similar
Topics:
1 Mullen has proposed to raise taxes on the rich, who made so 3 16 Feb 2010, 07:57
Lawmaker: Raising taxes is not the only means of reducing 6 28 Apr 2008, 12:40
1 A gas tax of one cent per gallon would raise one billion 4 23 Feb 2008, 08:17
Lawmaker: Raising taxes is not the only means of reducing 4 29 Sep 2007, 22:06
Lawmaker: Raising taxes is the the only means of reducing 12 05 Aug 2006, 07:42
Display posts from previous: Sort by

# Lawmaker: Raising taxes is not the only means of reducing

 Question banks Downloads My Bookmarks Reviews Important topics

 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®.