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A county airport, designed to serve the needs of private air

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A county airport, designed to serve the needs of private air  [#permalink]

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New post 01 Nov 2013, 23:08
3
3
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A
B
C
D
E

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  35% (medium)

Question Stats:

71% (01:44) correct 29% (02:02) wrong based on 555 sessions

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A county airport, designed to serve the needs of private aircraft owners, planned to cover its operating expenses in part
by charging user fees to private aircraft using the airport. The airport was unable to pay its operating expenses because
the revenue from user fees was lower that expected.

If the statements above are true, which one of the following must also be true?

(A) Most of the country's citizens live a convenient distance from one or another airport now offering commercial airline services.

(B) Private aircraft owners were unwilling to pay the user fees charged at the airport.

(C) The airport's construction was financed exclusively by private funds.

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes.

(E) The number of owners of private aircraft who use the county's airport facilities will not change appreciably in the future.

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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 02 Nov 2013, 19:35
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Hint: focus on the phrase "unable to pay its operating expenses"
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 02 Nov 2013, 22:31
I have a doubt on option (D)

Truth 1: The airport was unable to pay its operating expenses
Truth 2: the revenue from user fees was lower that expected.
Let's Say Operating expense = 100
expected Revenue from user fees = 60
actual revenue from user fees = 30

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes.
if revenue raised from other source = 10 (100>10)
Total Revenue = 30+10 = 40 -------------Airport cannot pay operating cost, conclusion holds true.

if revenue raised from other source = 90 (100>90)
Total revenue = 30+90 =120 -----------------Airport can pay operating cost, conclusion does does not hold true.

So, choice D is not always true.

Correct me if I am wrong.
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 03 Nov 2013, 04:17
According to my analysis, the key lies in the following part of the argument

".. planned to cover its operating expenses in part
by charging user fees to private aircraft using the airport..."

This indicates that only a part of the operational expenses were to be covered with the user fees whereas the remaining part should come from other sources.

Also it is mentioned that airport was unable to pay the expenses due to lower user fees than expected implying that the expected amount of user fees could cover the expenses, which also means that the remaining amount from other sources was not expected to be sufficient or any higher.

Hence option D should be correct.
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 03 Nov 2013, 04:57
(A) Most of the country's citizens live a convenient distance from one or another airport now offering commercial airline services. ---- Out of Scope. Where the citizens live is none of our business. Even though commercial airline services run from the airports but the question stem does not provide any info about the impact of commercial airlines on the revenue.

(B) Private aircraft owners were unwilling to pay the user fees charged at the airport.---- Okay, The revenue from user fees was lower than expected. If the PA owners were unwilling to pay the user fees then the authorities would have taken that into account before estimating the expected revenue. No information to support this answer from the question stem.

(C) The airport's construction was financed exclusively by private funds.---- Out of scope. Cannot infer this at all from the question stem.

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes.---- CORRECT because the question stem uses statements such as cover its operating expenses in part and user fees was lower that expected.. Now this answer tells us that there are other income that cover the operating expenses. So if operating revenues could not be covered, then the revenue from other sources is probably less than the expenses that need to be covered after the revenue from user fees.

(E) The number of owners of private aircraft who use the county's airport facilities will not change appreciably in the future.---- We cannot infer this. It may or may not change appreciably in the future. Just because the revenue was not up to the mark now, does not mean it will stay like this forever.
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 22 Mar 2017, 04:08
(A) Most of the country's citizens live a convenient distance from one or another airport now offering commercial airline services. (Wrong Answer : This is not necessary for the argument to be true.)

(B) Private aircraft owners were unwilling to pay the user fees charged at the airport.( Wrong Answer :This is not something that can be derived from the argument.)

(C) The airport's construction was financed exclusively by private funds. ( Wrong Answer : This is totally out of the scope of the argument.)

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes. ( Right Answer : It is clear from the argument that the airport has planned to utilize funds from two different sources of income to pay for the operating expenses. If the the airport is not able to pay for its operating expenses means the income earned from sources other than user fees is individually not sufficient to cover for the operating expenses of the airport.)

(E) The number of owners of private aircraft who use the county's airport facilities will not change appreciably in the future.( wrong answer : The discussion in the argument is not about a future scenario.)
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 24 Jul 2017, 11:07
I have a confusion with option B. Could anyone please explain to me why option B is incorrect?
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 25 Jul 2017, 02:26
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csaluja wrote:
I have a confusion with option B. Could anyone please explain to me why option B is incorrect?


Hi csaluja ,

Here I go:

The argument is saying airport planned to charge extra fees but still it was unable to cover expenses.

We need to infer something out of this.

(B) Private aircraft owners were unwilling to pay the user fees charged at the airport.

How do you know they were unwilling? May be they were making the payment but still expenses were not covered. We are also told that they are already paying something but it is still less. Hence, telling that they were unwilling is wrong. This is blaming them for not paying when they actually are paying something. Hence, incorrect.

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes.

This adds a possibility that even if they were getting money from some outside sources, the expense was more enough that they were forced to charge extra fees now.
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Re: A county airport, designed to serve the needs of private air  [#permalink]

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New post 25 Jul 2017, 08:12
abhimahna wrote:
csaluja wrote:
I have a confusion with option B. Could anyone please explain to me why option B is incorrect?


Hi csaluja ,

Here I go:

The argument is saying airport planned to charge extra fees but still it was unable to cover expenses.

We need to infer something out of this.

(B) Private aircraft owners were unwilling to pay the user fees charged at the airport.

How do you know they were unwilling? May be they were making the payment but still expenses were not covered. We are also told that they are already paying something but it is still less. Hence, telling that they were unwilling is wrong. This is blaming them for not paying when they actually are paying something. Hence, incorrect.

(D) The airport's operating expenses were greater than the revenues raised from sources other than the airport user fees for private planes.

This adds a possibility that even if they were getting money from some outside sources, the expense was more enough that they were forced to charge extra fees now.



Understood completely, thank you so much! Kudos given!
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Re: A county airport, designed to serve the needs of private air   [#permalink] 25 Jul 2017, 08:12
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