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# According to the Tristate Transportation Authority, making

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Senior Manager
Joined: 02 Sep 2006
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According to the Tristate Transportation Authority, making [#permalink]

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06 Apr 2007, 02:39
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According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.
[Reveal] Spoiler: OA

Last edited by Zarrolou on 07 Aug 2013, 10:51, edited 1 time in total.
Senior Manager
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06 Apr 2007, 04:09
the only answer that makes sense is D.

20 percent of the drivers actually stopped paying tolls altogether and the result was that their new route then was improved.

they recieved benefit from the raising of the tolls.
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06 Apr 2007, 06:58
D.

In the long run (over the course of five yrs), 20% of ppl not using it and switching to an alternative would hurt the revenue and thus would make the authority's plan to finance by increasing bridge tolls ineffective.

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06 Apr 2007, 07:32
D.
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Re: CR: Tristate Transportation Authority [#permalink]

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06 Apr 2007, 20:15
Vote D
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06 Apr 2007, 21:06
Sure D.

The alternative option available to commuters make the authorities plan a failure.
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10 Apr 2007, 05:37
OA is D
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Re: According to the Tristate Transportation Authority, making [#permalink]

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07 Jul 2012, 12:30
faifai0714 wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.

Stuck with C and D..can anyone explain why C is wrong? Thanks
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Re: According to the Tristate Transportation Authority, making [#permalink]

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08 Jul 2012, 20:37
Straight D.

The Authority is looking at a massive diminution of projected revenues to the tune of at least 20%, thanks to the diversion option available to drivers looking at avoiding the new tolls.

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According to the Tristate Transportation Authority, making [#permalink]

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07 Aug 2013, 10:49
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According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two high-way bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority’s plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no
benefit.

. Which of the following, if true, would cast the most doubt on the effectiveness of the authority’s plan to
finance the proposed improvements by increasing bridge tolls?
(A) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.
(B) Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.
(C) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.
(D) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.
(E) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.

Choice D: If 20% shifted the last time and even if we do assume that this process will happen this time, we are only talking about 20% of the population. 80% of the people might well go ahead and use the toll bridge.Why is this taken to be the correct answer?

If we compare this with choice C: Many commuters will buy tokens in advance. Now we do not what many is. It could be 5% it could be 80% or whatever. And also we do not know for how long these coupons will last. Its possible that the commuters buy them for the entire duration of 5 years

why pick c over d?
both need similar levels of assumptions to weaken

Last edited by Zarrolou on 07 Aug 2013, 10:52, edited 1 time in total.
Merging similar topics.
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Re: According to the Tristate Transportation Authority, making [#permalink]

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07 Aug 2013, 11:15
Hi 12bhang,

I also initially opted for C but guess D is the correct answer.

You did rightly analyse the cases in C & D.

However, as in Option C, buying tokens in advance is in no way going to benefit(contrary to being unfairly treated...weakener) the drivers. Using the alternate path, as in option D, although by 20% of the drivers will certainly benefit atleast some of the drivers.

Regards

Argha
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Re: According to the Tristate Transportation Authority, making [#permalink]

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07 Aug 2013, 14:20
1
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12bhang wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two high-way bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority’s plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no
benefit.

. Which of the following, if true, would cast the most doubt on the effectiveness of the authority’s plan to
finance the proposed improvements by increasing bridge tolls?
(A) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.
(B) Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.
(C) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.
(D) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.
(E) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.

Choice D: If 20% shifted the last time and even if we do assume that this process will happen this time, we are only talking about 20% of the population. 80% of the people might well go ahead and use the toll bridge.Why is this taken to be the correct answer?

If we compare this with choice C: Many commuters will buy tokens in advance. Now we do not what many is. It could be 5% it could be 80% or whatever. And also we do not know for how long these coupons will last. Its possible that the commuters buy them for the entire duration of 5 years

why pick c over d?
both need similar levels of assumptions to weaken

Answer choice C makes mention of some commuters buying tokens in advance to limit the effect of the increase. This means that the authority is starved of some revenue; however, the time horizon in question is over 5 years. Even if every single consumers bought some number of tokens in advance, it's very unlikely that everyone would buy 5 years worth of tokens. And, even if every consumer did buy 5 year's worth of tokens, the authority will still enjoy 5 year's worth of revenue at the original toll rate. C doesn't fundamentally undermine the financing plan.

On the other hand, D remarks on a situation where, following a previous rate increase a full 20% of drivers switched routes (presumably forever). D further mentions that the alternate route in question has since been improved, implying that it is now suitable for more drivers and/or a more attractive alternative. If the authority increases tolls, then it stands to reason that some number of drivers, possibly more than 20%, will switch to the now improved alternate route. And, unlike the token hoarders above, this switch will likely be permanent and that revenue will be lost to the authority.

For that reason, D is a stronger answer because it offers a more systemic threat to the financing arrangement, given the 5 year financing described in the passage.
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Re: According to the Tristate Transportation Authority, making [#permalink]

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07 Aug 2013, 17:34
12bhang wrote:
why pick c over d?
both need similar levels of assumptions to weaken

IMO your understanding is perfectly fine.

go through the below link in order to get the takeaway from the question .

http://www.manhattangmat.com/forums/acc ... t6915.html

if further discussion required surely post again.

hope this helps
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Re: According to the Tristate Transportation Authority, making [#permalink]

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08 Aug 2013, 14:55
faifai0714 wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised. irrelevant to success of raising funds

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines. irrelevant to raising funds

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase. hmmm?

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved. hmmm?

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase. irrelevant

Between C & D, think of income when comparing the answer choices. Which one will lead to the least amount of revenue generated? C-the revenue will remain the same initially, but will eventually increase. D-a 20% drop in toll fees is a permanent drop. Total Revenue[future + present] (C) > Revenue [future + present] (D)
Since Rev D is less, the answer will be D

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Re: According to the Tristate Transportation Authority, making [#permalink]

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18 Sep 2013, 18:42
Plan : To charge a toll on commuters on the road connecting the rail line .
Objective : Raise funds for the rail line .

When would the plan be weakened ?
If we can show if funds cannot be raised some how .
a) Less people travel that route

And OA D says it all !!
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Re: According to the Tristate Transportation Authority, making [#permalink]

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03 Feb 2015, 22:36
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Re: According to the Tristate Transportation Authority, making [#permalink]

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03 Feb 2015, 23:40
The question asks for something that helps the authority to refute the argument that the toll increase is fair. The reason cited is that "would unfairly force drivers to absorb the entire cost of something from which they receive no benefit. " If we can show that there is a benefit, that would weaken the argument. Let's check.

(A) Even with the proposed toll increase, the average bridge toll in the tristate region would remain less than the tolls charged in neighboring states.
There is no reason for drivers to benefit from this. NO.

(B) Any attempt to finance the improvements by raising rail fares would result in a decrease in ridership and so would be self-defeating.
This is opposite of what the authorities said earlier. NO.

(C) Automobile commuters benefit from well-maintained bridges, and in the tristate region bridge maintenance is funded out of general income tax revenues to which both automobile and rail commuters contribute.
Ok, so, part of income taxes are used for bridge maintenance. There is nothing in the CR paragraph that says that increasing rail commuters will increase tax revenues. Even if that were to be true, we still don't know whether the increase will be used for maintaining bridges or some other social program. NO.

(D) The roads along the route served by the rail line are highly congested and drivers benefit when commuters are diverted from congested roadways to mass transit.
YES. Clearly, if some of the commuters leave the road for the rail, the drivers will benefit from less congestion. This is what we were looking for anyway (something that shows even a 0.01% benefit).

(E) The only alternative way of funding the proposed improvements now being considered is through a regional income tax surcharge, which would affect automobile commuters and rail commuters alike.
Again, even if this is true, it doesn't show how drivers benefit from paying tolls rather than income tax surcharge. Furthermore, the income tax surcharge might be actually less than the tolls. who knows? NO.
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Re: According to the Tristate Transportation Authority, making [#permalink]

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02 Oct 2015, 22:19
souvik101990 wrote:
The question asks for something that helps the authority to refute the argument that the toll increase is fair. The reason cited is that "would unfairly force drivers to absorb the entire cost of something from which they receive no benefit. " If we can show that there is a benefit, that would weaken the argument. Let's check.

(A) Even with the proposed toll increase, the average bridge toll in the tristate region would remain less than the tolls charged in neighboring states.
There is no reason for drivers to benefit from this. NO.

(B) Any attempt to finance the improvements by raising rail fares would result in a decrease in ridership and so would be self-defeating.
This is opposite of what the authorities said earlier. NO.

(C) Automobile commuters benefit from well-maintained bridges, and in the tristate region bridge maintenance is funded out of general income tax revenues to which both automobile and rail commuters contribute.
Ok, so, part of income taxes are used for bridge maintenance. There is nothing in the CR paragraph that says that increasing rail commuters will increase tax revenues. Even if that were to be true, we still don't know whether the increase will be used for maintaining bridges or some other social program. NO.

(D) The roads along the route served by the rail line are highly congested and drivers benefit when commuters are diverted from congested roadways to mass transit.
YES. Clearly, if some of the commuters leave the road for the rail, the drivers will benefit from less congestion. This is what we were looking for anyway (something that shows even a 0.01% benefit).

(E) The only alternative way of funding the proposed improvements now being considered is through a regional income tax surcharge, which would affect automobile commuters and rail commuters alike.
Again, even if this is true, it doesn't show how drivers benefit from paying tolls rather than income tax surcharge. Furthermore, the income tax surcharge might be actually less than the tolls. who knows? NO.

Re: According to the Tristate Transportation Authority, making   [#permalink] 02 Oct 2015, 22:19
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