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# The city's public transportation system should be removed

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Senior Manager
Affiliations: CFA Level 2
Joined: 05 May 2004
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Location: Hanoi
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The city's public transportation system should be removed [#permalink]

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20 Jul 2004, 02:44
00:00

Difficulty:

15% (low)

Question Stats:

79% (02:20) correct 21% (01:42) wrong based on 94 sessions

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The city's public transportation system should be removed from the jurisdiction of the municipal government, which finds it politically impossible either to raise fares or to institute cost - saving reductions in service. If public transportation were handled by a private firm, profits would be vigorously pursued, thereby eliminating the necessity for covering operating costs with government funds.

The statement best support that:

A. The private firms that would handle public transportation would have experience in the transportation industry
B. political considerations would not prevent private firms from ensuring that revenues cover operating costs
C. private firms would receive government funding if it were needed to cover operating costs.
D. The public would approve the cost cutting actions taken by the private firm
E. THe municipal government would not be resigned to accumulating merely enough income to cover costs
[Reveal] Spoiler: OA

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Re: The city's public transportation system should be removed [#permalink]

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20 Jul 2004, 05:21
B for me too
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Re: The city's public transportation system should be removed [#permalink]

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20 Jul 2004, 05:55
B is it, I believe.

A - out of scope
C - contradicts what is said in the stem
D - out of scope (no mention of 'public' in the stem)
E - out of scope

bigtooth81 wrote:
The city's public transportation system should be removed from the jurisdiction of the municipal government, which finds it politically impossible either to raise fares or to institute cost - saving reductions in service. If public transportation were handled by a private firm, profits would be vigorously pursued, thereby eliminating the necessity for covering operating costs with government funds.
The statement best support that:
A. The private firms that would handle public transportation would have experience in the transportation industry
B. political considerations would not prevent private firms from ensuring that revenues cover operating costs
C. private firms would receive government funding if it were needed to cover operating costs.
D. The public would approve the cost cutting actions taken by the private firm
E. THe municipal government would not be resigned to accumulating merely enough income to cover costs

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Awaiting response,

Thnx & Rgds,
Chandra

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Re: The city's public transportation system should be removed [#permalink]

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20 Jul 2004, 13:24
With the other members of the club. B should be it.
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Re: The city's public transportation system should be removed [#permalink]

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22 Jun 2016, 11:51
The question's OA is indeed B

Den
Re: The city's public transportation system should be removed   [#permalink] 22 Jun 2016, 11:51
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# The city's public transportation system should be removed

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