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# A gas tax of one cent per gallon would raise one billion

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VP
Joined: 25 Nov 2004
Posts: 1481

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A gas tax of one cent per gallon would raise one billion [#permalink]

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19 Apr 2005, 12:32
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A gas tax of one cent per gallon would raise one billion dollars per year at current consumption rates. Since a tax of fifty cents per gallon would therefore raise fifty billion dollars per year, it seems a perfect way to deal with the federal budget deficit. This tax would have the additional advantage that the resulting drop in the demand for gasoline would be ecologically sound and would keep our country from being too dependent on foreign oil producers.

Which one of the following most clearly identifies an error in the authorâ€™s reasoning?

(A) The author cites irrelevant data.
(B) The author relies on incorrect current consumption figures.
(C) The author makes incompatible assumptions.
(D) The author mistakes an effect for a cause.
(E) The author appeals to conscience rather than reason.

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SVP
Joined: 30 Oct 2003
Posts: 1788

Kudos [?]: 114 [0], given: 0

Location: NewJersey USA

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19 Apr 2005, 12:55
I believe the answer is (C)

one part of the argument says that the consumption will remain the same inspite of increase in the tax , and the other part says the consumption will decrease and this descrease will be good for the country.

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VP
Joined: 30 Sep 2004
Posts: 1480

Kudos [?]: 426 [0], given: 0

Location: Germany

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19 Apr 2005, 12:57
C)...

The author makes incompatible assumptions. => the author says that the consumption rate stays at present levels. then he says the demand will drop. if that is true how can they raise fifty billion dollars per year. if the own gasoline is more expansive than the foreign gasoline, how can he assume that the people won`t buy foreign gasoline. many incompatible assumptions
_________________

If your mind can conceive it and your heart can believe it, have faith that you can achieve it.

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VP
Joined: 18 Nov 2004
Posts: 1430

Kudos [?]: 49 [0], given: 0

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19 Apr 2005, 13:43
good ques..."C".....author in one hand assumes that consumption will stay the same when he calculates the revenue then says that consumption will decrease and will benefit the env.

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VP
Joined: 25 Nov 2004
Posts: 1481

Kudos [?]: 131 [0], given: 0

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19 Apr 2005, 14:10
Yes, C is OA.

Kudos [?]: 131 [0], given: 0

19 Apr 2005, 14:10
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# A gas tax of one cent per gallon would raise one billion

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