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# Canadians now increasingly engage in out-shopping, which is

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Senior Manager
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22 Feb 2017, 08:38
the answer must be A ,
we can eliminate D as it is not necessary that people buy the same brand outside the border what if the rival brand has lower price and has the similar quality so it can't be concluded form the above stimulus .
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21 Aug 2017, 06:11
Merged topics. Please, search before posting questions!
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Manager
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24 Sep 2017, 23:16
Hello Moderators,

Can you please add the the OA to this question? Its a bit difficult to go through all the posts just to see what is the right answer. Thanks for understanding.
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10 Dec 2017, 21:16
A shows causal relationship. => A is right.
B and C are safely ruled out.
D and E do not have information covered in the passage.
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15 Jan 2018, 23:12
solitaryreaper wrote:
ssbisht wrote:
(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.
A continued trend in out-shopping means that lesser people will pay Canadian goods-and-services tax which will mean that government has to increase tax rate to be able to pay for the Canadian social services.
This falls within the boundaries of what is given in the premise and hence is the correct answer.
However there is an assumption here that the amount of shopping inside Canada has not increased enough to counter the out-shopping. I am going with this choice considering that the author has mentioned significant level for out-shopping. Also no other choice is even close to being correct.

(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.
Nothing is given about taxes on other side so we shouldn't assume anything

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.
The amounts provided for social services may increase because of increase in population or many other reasons and out shopping has nothing to do with it.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.
Taking about Brand is out of scope.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.
Again out of scope. Nothing mentioned about the taxes on buying across the border.

Hi Experts !

I have a doubt in option A

Prompt says that "goods-and-services tax that pays for Canadian social services". But it doesn't mean that this tax is the only source of income for the Canadian social services. May be revenue from exports and other services are also paying for the social services.

so how's A necessarily true ?
A continued trend in out-shopping means that lesser people will pay Canadian goods-and-services tax which will mean that government has to increase tax rate to be able to pay for the Canadian social services.

a decrease in the tax income might be recovered by using a greater share of revenue from other sources of income to pay for Social services or by increasing tax rate.
Therefore an increase in tax is not necessary (not a must be true situation).

Any thoughts?

While D says:

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.

Argument says :
Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower.

Obviously, why they are doing out-shopping because they are getting lower prices for the things they need(just like a discount store).
A higher price of say an x-box in the home country is driving them to buy it from outside-Canada where they can get it for a lower price.

A brand or commodity that is absent in the Canadian market (and anyhow citizens are buying it from New York) doesn't come under the spectrum of this argument which basically relies on the cost advantage.

In the light of this option D is a correct inference for the argument to stand legit.

Opinions ?

Regards,
SR

Hi Solitaryreaper,

Good question.

D is more of an assumption if you think about it. On a find the assumption question this answer choice would be a very good candidate for a right answer. However we have to stick to what the question asks

Which one of the following is best supported on the basis of the information above?

Prompt says that "goods-and-services tax that pays for Canadian social services". But it doesn't mean that this tax is the only source of income for the Canadian social services. May be revenue from exports and other services are also paying for the social services

Yes it is true that there could be other sources. The passage does not explicitly state that this is the only source either, so it's already understood that there could be multiple sources of revenue. The point however is that if people continue out shopping and amount paid by the government for social services remains the same, then assuming that costs of social services are increasing, government needs more revenue from goods and taxes and hence will have to INCREASE tax rates. This is what choice A coveys.
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15 Jan 2018, 23:13
solitaryreaper wrote:
ssbisht wrote:
(A) If the upward trend in out-shopping continues at a significant level and the amounts paid by the government for Canadian social services are maintained, the Canadian goods-and-services tax will be assessed at a higher rate.
A continued trend in out-shopping means that lesser people will pay Canadian goods-and-services tax which will mean that government has to increase tax rate to be able to pay for the Canadian social services.
This falls within the boundaries of what is given in the premise and hence is the correct answer.
However there is an assumption here that the amount of shopping inside Canada has not increased enough to counter the out-shopping. I am going with this choice considering that the author has mentioned significant level for out-shopping. Also no other choice is even close to being correct.

(B) If Canada imposes a substantial tariff on the goods bought across the border, a reciprocal tariff on cross-border shopping in the other direction will be imposed, thereby harming Canadian businesses.
Nothing is given about taxes on other side so we shouldn't assume anything

(C) The amounts the Canadian government pays out to those who provide social services to Canadians are increasing.
The amounts provided for social services may increase because of increase in population or many other reasons and out shopping has nothing to do with it.

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.
Taking about Brand is out of scope.

(E) Out-shopping purchases are subject to Canadian taxes when the purchaser crosses the border to bring them into Canada.
Again out of scope. Nothing mentioned about the taxes on buying across the border.

Hi Experts !

I have a doubt in option A

Prompt says that "goods-and-services tax that pays for Canadian social services". But it doesn't mean that this tax is the only source of income for the Canadian social services. May be revenue from exports and other services are also paying for the social services.

so how's A necessarily true ?
A continued trend in out-shopping means that lesser people will pay Canadian goods-and-services tax which will mean that government has to increase tax rate to be able to pay for the Canadian social services.

a decrease in the tax income might be recovered by using a greater share of revenue from other sources of income to pay for Social services or by increasing tax rate.
Therefore an increase in tax is not necessary (not a must be true situation).

Any thoughts?

While D says:

(D) The same brands of goods are available to Canadian shoppers across the border as are available in Canada.

Argument says :
Canadians now increasingly engage in “out-shopping,” which is shopping across the national border, where prices are lower.

Obviously, why they are doing out-shopping because they are getting lower prices for the things they need(just like a discount store).
A higher price of say an x-box in the home country is driving them to buy it from outside-Canada where they can get it for a lower price.

A brand or commodity that is absent in the Canadian market (and anyhow citizens are buying it from New York) doesn't come under the spectrum of this argument which basically relies on the cost advantage.

In the light of this option D is a correct inference for the argument to stand legit.

Opinions ?

Regards,
SR

Hi Solitaryreaper,

Good question.

D is more of an assumption if you think about it. On a find the assumption question this answer choice would be a very good candidate for a right answer. However we have to stick to what the question asks

Which one of the following is best supported on the basis of the information above?

Prompt says that "goods-and-services tax that pays for Canadian social services". But it doesn't mean that this tax is the only source of income for the Canadian social services. May be revenue from exports and other services are also paying for the social services

Yes it is true that there could be other sources. The passage does not explicitly state that this is the only source either, so it's already understood that there could be multiple sources of revenue. The point however is that if people continue out shopping and amount paid by the government for social services remains the same, then assuming that costs of social services are increasing, government needs more revenue from goods and taxes and hence will have to INCREASE tax rates. This is what choice A coveys.
Re: Canadians now increasingly engage in out-shopping, which is   [#permalink] 15 Jan 2018, 23:13

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