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To meet growing energy needs in Ibernia, ...

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Director
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To meet growing energy needs in Ibernia, ... [#permalink] New post 14 Oct 2013, 07:52
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00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

71% (02:13) correct 29% (01:33) wrong based on 126 sessions
To meet growing energy needs in Ibernia, companies built more energy plants that burn
oil, coal, and natural gas. To limit carbon dioxide emissions and encourage the
development of "green" energy, the Ibernian governmental recently imposed a carbon tax
that directly affects the newly built plants. We should therefore expect to see more money
and innovation in the development of alternative energy and a decrease in the country's
reliance on fossil fuels.

Which of the following is an assumption on which the argument depends?

(A) The plants that burn oil, coal, and natural gas can easily be converted so that
they use "green" energy.

(B) The carbon tax will lead to the closure of many of the plants that burn oil, coal,
and natural gas.

(C) Ibernia's energy needs will continue to grow even if the carbon tax results in
higher energy costs.

(D) Ibernia's reliance on fossil fuels is likely to cause the country to fall behind its
neighbors in efforts to develop "green" energy.

(E) The cost of developing alternative energy is less than the cost to existing energy
plants of the government's carbon tax.



GH-06.04.13
[Reveal] Spoiler: OA

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3 KUDOS received
Manager
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Re: To meet growing energy needs in Ibernia, ... [#permalink] New post 15 Oct 2013, 03:49
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(A) The plants that burn oil, coal, and natural gas can easily be converted so that
they use "green" energy.--- Incorrect because if the plants can be easily converted then there will be no new plants. Carbon tax only applies to new plants so there won't be new innovation

(B) The carbon tax will lead to the closure of many of the plants that burn oil, coal,
and natural gas. ---- Incorrect. Okay if the plants close down. Will there be any new plants? What if there is no need for any new plants... Then there will be no new plants with no innovation.

(C) Ibernia's energy needs will continue to grow even if the carbon tax results in
higher energy costs.--- Incorrect. Out of scope. This does not really give us any info. The current plants can also suffice the increase in energy needs.

(D) Ibernia's reliance on fossil fuels is likely to cause the country to fall behind its
neighbors in efforts to develop "green" energy.---- Completely irrelevant.

(E) The cost of developing alternative energy is less than the cost to existing energy
plants of the government's carbon tax.--- CORRECT because the cost of alternative energy is less than the carbon tax. This means that more companies will chose to switch and in that process there will be more innovations and a decrease in reliance on fossil fuels.
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Manager
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Concentration: Human Resources, International Business
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Re: To meet growing energy needs in Ibernia, ... [#permalink] New post 15 Oct 2013, 06:20
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avohden wrote:
To meet growing energy needs in Ibernia, companies built more energy plants that burn
oil, coal, and natural gas. To limit carbon dioxide emissions and encourage the
development of "green" energy, the Ibernian governmental recently imposed a carbon tax
that directly affects the newly built plants. We should therefore expect to see more money
and innovation in the development of alternative energy and a decrease in the country's
reliance on fossil fuels.

Which of the following is an assumption on which the argument depends?

(A) The plants that burn oil, coal, and natural gas can easily be converted so that
they use "green" energy.

(B) The carbon tax will lead to the closure of many of the plants that burn oil, coal,
and natural gas.

(C) Ibernia's energy needs will continue to grow even if the carbon tax results in
higher energy costs.

(D) Ibernia's reliance on fossil fuels is likely to cause the country to fall behind its
neighbors in efforts to develop "green" energy.

(E) The cost of developing alternative energy is less than the cost to existing energy
plants of the government's carbon tax.



GH-06.04.13



(A) The plants that burn oil, coal, and natural gas can easily be converted so that
they use "green" energy. Incorrect. If the plants can be easily converted then there is no need of innovation.

(B) The carbon tax will lead to the closure of many of the plants that burn oil, coal,
and natural gas. Incorrect. If the plants are closed down, there will be no innovation.

(C) Ibernia's energy needs will continue to grow even if the carbon tax results in
higher energy costs. Incorrect. Irrelevant fact.

(D) Ibernia's reliance on fossil fuels is likely to cause the country to fall behind its
neighbors in efforts to develop "green" energy. Incorrect. Irrelevant fact.

(E) The cost of developing alternative energy is less than the cost to existing energy
plants of the government's carbon tax. Correct. Only point that supports the statement that there will be more innovation and development because the cost of developing alternative energy is less than the cost incurred by way of paying carbon tax.
Intern
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Joined: 07 Jan 2013
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Location: Poland
GPA: 3.8
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Kudos [?]: 5 [0], given: 491

Re: To meet growing energy needs in Ibernia, ... [#permalink] New post 25 Oct 2013, 19:37
I do not agree with your analysis about point B, but the rest is okey. Nice
Director
Director
User avatar
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 513
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Followers: 22

Kudos [?]: 279 [0], given: 629

Re: To meet growing energy needs in Ibernia, ... [#permalink] New post 26 Oct 2013, 02:49
Official Explanation

Answer: E
This is an assumption question. The argument concludes that, as a result of taxes on newly built plants, companies will put more money into developing alternative energy sources. The underlying assumption is that the tax is substantial enough so that developing new technologies is a cheaper alternative to sticking with the newly built plants and paying the taxes. If you identify the assumption, you don't need to analyze each choice, as choice (E) neatly wraps up the link between the two sentences in the passage. (E) is the correct choice.
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Re: To meet growing energy needs in Ibernia, ...   [#permalink] 26 Oct 2013, 02:49
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