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nightblade354
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Joined: 31 Jul 2017
Last visit: 15 May 2026
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Status:He came. He saw. He conquered. -- Going to Business School -- Corruptus in Extremis
Location: United States (MA)
Concentration: Finance, Economics
Schools: Darden '25 (M)
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13 Sep 2018, 10:31
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
78% (01:38) correct
22%
(01:55)
wrong
based on 502
sessions
History
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Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.
Which of the following is an assumption underlying the plan to avoid a slowdown in the city’s economy?
(A) Three months is a sufficient period of time to allow gasoline prices to stabilize
(B) Commuters who usually drive to work will begin taking public transportation if it is free
(C) Other factors in the local economy are affecting the price of gasoline
(D) The cost of parking in the city will remain relatively stable
(E) People who work in the city are more likely to drive than to take public transportation
V06-24
Which of the following is an assumption underlying the plan to avoid a slowdown in the city’s economy?
(A) Three months is a sufficient period of time to allow gasoline prices to stabilize
(B) Commuters who usually drive to work will begin taking public transportation if it is free
(C) Other factors in the local economy are affecting the price of gasoline
(D) The cost of parking in the city will remain relatively stable
(E) People who work in the city are more likely to drive than to take public transportation
V06-24
13 Sep 2018, 10:41
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Premise- sharp rise in the price of gasoline, commuters who drive to work are facing a large increase in transportation expenses that will limit the funds to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months.
Conclusion - Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.
Pre-thinking - commuters who drive to work will use public transportation.
(A) Three months is a sufficient period of time to allow gasoline prices to stabilize - Irrelevant.
(B) Commuters who usually drive to work will begin taking public transportation if it is free - CORRECT. If we negate this statement, the argument fails.
(C) Other factors in the local economy are affecting the price of gasoline - Irrelevant.
(D) The cost of parking in the city will remain relatively stable - Irrelevant.
(E) People who work in the city are more likely to drive than to take public transportation - Weakens.
Answer B.
Conclusion - Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.
Pre-thinking - commuters who drive to work will use public transportation.
(A) Three months is a sufficient period of time to allow gasoline prices to stabilize - Irrelevant.
(B) Commuters who usually drive to work will begin taking public transportation if it is free - CORRECT. If we negate this statement, the argument fails.
(C) Other factors in the local economy are affecting the price of gasoline - Irrelevant.
(D) The cost of parking in the city will remain relatively stable - Irrelevant.
(E) People who work in the city are more likely to drive than to take public transportation - Weakens.
Answer B.
