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# Any tax relief received by the solar industry would not

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Director
Joined: 25 Oct 2008
Posts: 591
Location: Kolkata,India

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05 Jun 2009, 19:10
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:05) correct 0% (00:00) wrong based on 0 sessions

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Any tax relief received by the solar industry would not benefit the homeowner who installs a solar-energy system. Even though homeowners would pay a lower price for solar-energy system installations
because of this tax relief, with the government paying the balance, government revenues come from the public.

The argument above is based on which of the
following assumptions?
(A) The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to
the reduction in the price of that home-owner's solar-energy system installation.

(B) The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.

(C) Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the

(D) Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.

(E) Tax relief would encourage solar industries to sell solar-energy systems at higher prices.

OA (A)
I did'nt understand the ques.Is there a printing error in the last sentence?Please explain.
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Senior Manager
Joined: 10 Dec 2008
Posts: 476
Location: United States
GMAT 1: 760 Q49 V44
GPA: 3.9

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05 Jun 2009, 19:17
A is indeed the correct answer and is what I thought. Assumption questions are the most difficult in my opinion because you have to focus on the gaps in the argument to fill the assumption. In this case, you should focus on the conclusion that the homeowners would NOT benefit. In order for that to occur, an assumption must be made...

(A) The tax relief would cause the homeowner to lose, through taxes or reduced government benefits or both, an amount at least equal to
the reduction in the price of that home-owner's solar-energy system installation.
If one assumes that the tax relief would hurt the homeowners overall, then clearly the conclusion is justified that homeowners would not benefit.

(B) The tax relief that would be received by solar-energy industries would not be offered at the same time as any tax relief for other industries.
Not really relevant as we are only concerned with solar-energy.

(C) Advertisements of the solar-energy industry, by failing to identify the source of government revenues explicitly to the public, mask the
This would strengthen as opposed to fill any assumptions.

(D) Homeowners generally believe that they benefit from any tax relief offered to the solar-energy industry.
This may be true but is not a crucial assumption to the argument.

(E) Tax relief would encourage solar industries to sell solar-energy systems at higher prices.
Not relevant.
Director
Joined: 05 Jun 2009
Posts: 805
WE 1: 7years (Financial Services - Consultant, BA)

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05 Jun 2009, 20:59
A it is (1.8)
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Intern
Joined: 13 May 2009
Posts: 20

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05 Jun 2009, 22:45
IMO A
Manager
Joined: 24 May 2009
Posts: 102

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06 Jun 2009, 09:40
It's A
Re: Gmat+ CR10(#10)   [#permalink] 06 Jun 2009, 09:40
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# Any tax relief received by the solar industry would not

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