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The Hazelton coal-processing plant is a major employer in

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The Hazelton coal-processing plant is a major employer in [#permalink]

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The Hazelton coal-processing plant is a major employer in the Hazelton area, but national environmental regulations will force it to close if it continues to use old, polluting processing methods. However, to update the plant to use newer, cleaner methods would be so expensive that the plant will close unless it receives the tax break it has requested. In order to prevent a major increase in local unemployment, the Hazelton government is considering granting the plant's request.

Which of the following would be most important for the Hazelton government to determine before deciding whether to grant the plant’s request?

(A) Whether the company that owns the plant would open a new plant in another area if the present plant were closed
(B) Whether the plant would employ far fewer workers when updated than it does now
(C) Whether the level of pollutants presently being emitted by the plant is high enough to constitute a health hazard for local residents
(D) Whether the majority of the coal processed by the plant is sold outside the Hazelton area
(E) Whether the plant would be able to process more coal when updated than it does now

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Re: CR: official diagnostic Hazelton Coal-Processing [#permalink]

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New post 04 Jul 2011, 17:08
greenspring wrote:
28. The Hazelton coal-processing plant is a major employer in the Hazelton area, but national environmental regulations will force it to close if it continues to use old, polluting processing methods. However, to update the plant to use newer, cleaner methods would be so expensive that the plant will close unless it receives the tax break it has requested. In order to prevent a major increase in local unemployment, the Hazelton government is considering granting the plant's request.

Which of following would be most important for the Hazelton government to determine before deciding whether to grant the plant's request?

A. Whether the company that owns the plant would open a new plant in another area if the present plant were closed.

B. Whether the plant would employ far fewer workers when updated than it does now.

C. Whether the level of pollutants presently being emitted by the plant is high enough to constitute a health hazard for local residents.

D. Whether the majority of the coal processed by the plant is sold outside the Hazelton area.

E. Whether the plant would be able to process more coal when updated than it does now.


"A" - If the present plant is closed, Hazelton government would not even worry about this issue. So, the issue whether to grant tax doesn't come into picture.

The question is based on the premise that the company wants to operate in the same city. The government's concerns are both whether the company employs new methods to ensure less harmful environment AND whether the company doesn't hamper the employment.

"B" mentions a situation in which despite offering the grants, the employment may decrease, clearly contradicting government's objective.

"C" is a fact that government already knows about. Again, if this were not true, the issue would not even exist.

"D" concerns the plant, not the government.

"E" So far the objective of reducing pollutants and retaining employees is met, government is happy. If plant can process more coal along the line, it's going to be good for the company and in turn for the government as more revenue ensures more taxes. However, this statement talks about a consideration that government need not worry about.

Ans: "B"
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Re: CR: official diagnostic Hazelton Coal-Processing [#permalink]

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New post 04 Jul 2011, 19:12
I would go with B since the point of the plant is to sustain employment. If less people were employed after the government gives the tax break, then the plan to sustain employment would have failed.
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Re: The Hazelton coal-processing plant is a major employer in [#permalink]

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New post 15 Nov 2015, 14:18
I completely agree with OA, yet, I have some ideas that I believe should not be avoided during the analysis of this argument.

If the company does not receive tax break, then it will surely close, since it cannot continue with its old polluting processing methods. Moreover, there is one more reason why would the plant close - the company doesn't have $ to upgrade to cleaner methods.

Basically, if the HG doesn't offer tax break, the plant will definitely close, an action that would lead to huge number of unemployed people.


To prevent the hike in unemployment, the most the government can do is offer tax break. Even if the new methods may lead to fewer jobs, there would still be some jobs. Which is not that bad after all.
For ex. 10k people work at the plant
closure of the plant - 10k people unemployed

new methods - cut by 1/2 employees
5000 lost jobs, but 5000 remained.

5000 lost is still better than 10k...
Re: The Hazelton coal-processing plant is a major employer in   [#permalink] 15 Nov 2015, 14:18
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