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

It is currently 20 Oct 2014, 09:57

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

Property taxes are typically set at a flat rate per $ 1,000

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 27 May 2009
Posts: 282
Followers: 2

Kudos [?]: 70 [0], given: 18

Property taxes are typically set at a flat rate per $ 1,000 [#permalink] New post 22 Aug 2009, 06:37
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

61% (01:44) correct 39% (01:17) wrong based on 17 sessions
106. Property taxes are typically set at a flat rate per $ 1,000 of officially assessed value. Reassessments should
be frequent in order to remove distortions that arise when property values change at differential rates. In practice,
however, reassessments typically occur when they benefit the government – that is, when their effect is to
increase total tax revenue.
If the statements above are true, which of the following describes a situation in which a reassessment should
occur but is unlikely to do so?
(A) Property values have risen sharply and uniformly.
(B) Property values have all risen – some very sharply, some less so.
(C) Property values have for the most part risen sharply yet some have dropped slightly.
(D) Property values have for the most part dropped significantly; yet some have risen slightly.
(E) Property values have dropped significantly and uniformly.


Pls explain the argument as well as the answer OA:
[Reveal] Spoiler:
D
2 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 29 Jul 2009
Posts: 316
Followers: 4

Kudos [?]: 204 [2] , given: 9

Re: Property taxes are typically set [#permalink] New post 22 Aug 2009, 07:36
2
This post received
KUDOS
IMO the best you can do is to diagram the stimulus

property values change at differential rates ---> Reassessments should occur

In reality

a reassessment has occurred ---> is likely that the reassessment has benefited the government, increasing the total revenue

If the statements above are true, which of the following describes a situation in which a reassessment should
occur but is unlikely to do so?

The key to this problem is to rephrase the question

a situation in which a reassessment should occur, the property values should change at different rates.
the reassessment is unlikely to do --> the reassessment won't benefit the government ---> the reassessment won't increase the total revenue

so you are looking for an answer in which the property values change at different rates but in which they don't increase the total revenue

(A) Property values have risen sharply and uniformly.

Eliminate this because the rates are not different

(B) Property values have all risen – some very sharply, some less so.

All the property values have risen, so they have increased the total revenue. out

(C) Property values have for the most part risen sharply yet some have dropped slightly.

This is results in an increase of the revenue. out


(D) Property values have for the most part dropped significantly; yet some have risen slightly.

Correct. Different rates and in global the revenue has decreased

(E) Property values have dropped significantly and uniformly.

not different rates
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 17 Mar 2009
Posts: 310
Followers: 6

Kudos [?]: 248 [1] , given: 22

Re: Property taxes are typically set [#permalink] New post 22 Aug 2009, 07:47
1
This post received
KUDOS
two statements from the argument
stmt1: Reassessments are mad when property values
change at differential rates

From stmt1,
change at differential rates==> increase as well as decrease of property rates


stmt2: Reassessments occur when they benefit government to increase total tax revenue

From stmt2,
to increase total tax revenue, most property values must increase. the question is when reassessment needed but it is not done by government, then it implies most property values decrease.
D clearly explains of most property value decreaese and some rise to prove stmt1 that reassessments are needed.

A. no differential rates so no reassessments needed

B. no differential rates , all have risen

C. differential rates are there so one condition is met, but most property values risen , then it would benefit government and reassessment would occur ( for us reassessment should not occur)

E. same as A no differential rates so no reassessments needed
Senior Manager
Senior Manager
avatar
Joined: 27 May 2009
Posts: 282
Followers: 2

Kudos [?]: 70 [0], given: 18

Re: Property taxes are typically set [#permalink] New post 22 Aug 2009, 23:34
Thanks Guys.... Got it.. Kudos to both of you
Intern
Intern
avatar
Joined: 29 Mar 2013
Posts: 3
Followers: 0

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

Re: Property taxes are typically set at a flat rate per $ 1,000 [#permalink] New post 29 Mar 2013, 05:37
A and E out, cause property values risen and dropped uniformly.

B and C -- in both these cases property values as whole increased. Ideally govt will reassess the taxes so that owners have to pay more. This reassessment is omething Govt will be looking to do, since these scenarios increase the tax revenue to Govt. So both out.

For D -- Explanation is similar to B and C, but in reverse. So Govt will not want to reassess in this scenario, cause it would mean less revenue to Govt.
Intern
Intern
avatar
Joined: 29 Mar 2013
Posts: 3
Followers: 0

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

Re: Property taxes are typically set at a flat rate per $ 1,000 [#permalink] New post 29 Mar 2013, 05:37
A and E out, cause property values risen and dropped uniformly.

B and C -- in both these cases property values as whole increased. Ideally govt will reassess the taxes so that owners have to pay more. This reassessment is omething Govt will be looking to do, since these scenarios increase the tax revenue to Govt. So both out.

For D -- Explanation is similar to B and C, but in reverse. So Govt will not want to reassess in this scenario, cause it would mean less revenue to Govt.
Current Student
User avatar
Joined: 29 Apr 2013
Posts: 101
Location: India
Concentration: General Management, Strategy
GMAT Date: 11-06-2013
WE: Programming (Telecommunications)
Followers: 1

Kudos [?]: 77 [0], given: 53

Re: Property taxes are typically set at a flat rate per $ 1,000 [#permalink] New post 30 Sep 2013, 07:41
rohansherry wrote:
Property taxes are typically set at a flat rate per $ 1,000 of officially assessed value. Reassessments should
be frequent in order to remove distortions that arise when property values change at differential rates. In practice,
however, reassessments typically occur when they benefit the government – that is, when their effect is to
increase total tax revenue.
If the statements above are true, which of the following describes a situation in which a reassessment should
occur but is unlikely to do so?
(A) Property values have risen sharply and uniformly.
(B) Property values have all risen – some very sharply, some less so.
(C) Property values have for the most part risen sharply yet some have dropped slightly.
(D) Property values have for the most part dropped significantly; yet some have risen slightly.
(E) Property values have dropped significantly and uniformly.


GMAT people posted this question today on their Facebook page. And I marked a wrong answer (E) :oops:
Actually I couldn't understand the meaning of "differential". So what does "differential" mean here? :roll:
_________________

Do not forget to hit the Kudos button on your left if you find my post helpful 8-)

Collection of some good questions on Number System

Re: Property taxes are typically set at a flat rate per $ 1,000   [#permalink] 30 Sep 2013, 07:41
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic Property taxes are typically set at a flat rate per $1,000 of official Bunuel 1 28 Sep 2014, 22:54
13 Experts publish their posts in the topic Property taxes are typically set at a flat rate per $1,000 carcass 9 05 Nov 2012, 16:27
1 Property taxes are typically set at a flat rate per $ 1,000 bsd_lover 8 05 May 2008, 21:54
11 Experts publish their posts in the topic CR: Property tax (CR 1000, TestA, Q17) neelesh 33 21 Jan 2008, 13:59
Guess which one is right Property taxes are typically set at nick_sun 10 04 Apr 2007, 05:32
Display posts from previous: Sort by

Property taxes are typically set at a flat rate per $ 1,000

  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®.