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

It is currently 16 Apr 2014, 00:08

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

The government should stop permitting tobacco companies to

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
Joined: 10 Jan 2006
Posts: 14
Followers: 0

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

The government should stop permitting tobacco companies to [#permalink] New post 04 Mar 2007, 17:45
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
The government should stop permitting tobacco companies to subtract advertising expenses from their revenues in calculating taxable income. Tobacco companies would then have to pay more taxes. As a consequence, they would raise the prices of their products and this price increase would raise the prices of their products and this price increase would discourage tobacco use.
Which of the following is an additional premise required by the argument above?
(A) Tobacco companies would not offset the payment of extra taxes by reducing costs in other areas.
(B) Tobacco companies would not continue to advertise if they were forced to pay higher taxes.
(C) People would not continue to buy tobacco products if these products were no longer advertised.
(D) The money the government would gain as a result of the increase in tobacco companies’ taxable income would be used to educate the public about the dangers of tobacco use.
(E) The increase in taxes paid by tobacco companies would be equal to the additional income generated by raising prices.
Manager
Manager
Joined: 09 Jan 2007
Posts: 242
Followers: 1

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

GMAT Tests User
 [#permalink] New post 04 Mar 2007, 17:57
(A)

Overall cost/benefit method wouldn't balance if extra tax amount is not covered by reducing other expenses. Therefore Govt's plan would be successful.
VP
VP
Joined: 21 Mar 2006
Posts: 1136
Location: Bangalore
Followers: 2

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

GMAT Tests User
 [#permalink] New post 04 Mar 2007, 19:37
rdg wrote:
(A)

Overall cost/benefit method wouldn't balance if extra tax amount is not covered by reducing other expenses. Therefore Govt's plan would be successful.


Nicey explained. A it is!
Director
Director
Joined: 24 Aug 2006
Posts: 755
Location: Dallas, Texas
Followers: 5

Kudos [?]: 14 [0], given: 0

GMAT Tests User
 [#permalink] New post 04 Mar 2007, 22:29
(A)
_________________

"Education is what remains when one has forgotten everything he learned in school."

  [#permalink] 04 Mar 2007, 22:29
    Similar topics Author Replies Last post
Similar
Topics:
Popular new posts 14 In Gandania, where the government has a monopoly on tobacco winskc 19 16 Oct 2006, 19:49
New posts The government should stop permitting tobacco companies to AK47 3 21 Jan 2007, 00:26
Popular new posts The government should stop permitting tobacco companies to ritula 15 26 Mar 2009, 00:55
New posts The government should stop permitting tobacco companies to mojorising800 4 31 Jan 2010, 05:53
New posts Experts publish their posts in the topic The government should stop permitting tobacco companies to shikhar 7 09 May 2012, 09:39
Display posts from previous: Sort by

The government should stop permitting tobacco companies to

  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®.