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

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Senior Manager
Joined: 05 May 2003
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Location: Aus
A gas tax of one cent per gallon would raise one billion [#permalink]

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13 Aug 2004, 15:30
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5.
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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Senior Manager
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13 Aug 2004, 16:05
C..
assumes demand will decrease
assumes that 50 billion will be raises. these two are inconsistent

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13 Aug 2004, 17:41
_________________

510 on my first GMAT. 610 on second GMAT.!
The struggle continues.

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Manager
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13 Aug 2004, 18:40
Geethu wrote:
5.
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.

(A)The data is relevant to the topic.
(B)We don't know whether the figures are incorrect
(D), (E) both not likely.

C should be it.

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Manager
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14 Aug 2004, 11:23
I am a bit indecisive on the answer. I can explain C and D for a correct answer. Refute my explain please.

C as explained above contradicts authors assumption. He assumes that he would be able to reduce the demand at the same time meet the deficit of 50 billion. this seems clear cut erroneous.

D seems to be true as well. He assumes the fuels consumption in vehicles as a cause when I somehow see is an effect. ( looking for some explanation...) thanks.

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14 Aug 2004, 12:18
krish, can you be more specific in terms of what do you think fuel consumption is the cause or effect of?
_________________

Best Regards,

Paul

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Manager
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14 Aug 2004, 14:22
Paul,
I think all i needed was a bit more analysis. Now, I see C is much stronger than D. Thanks man.

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14 Aug 2004, 14:22
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