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In Gandania, where the government has a monopoly on tobacco sales, the

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In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post Updated on: 27 Sep 2018, 21:38
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In Gandania, where the government has a monopoly on tobacco sales, the incidence of smoking-related health problems has risen steadily for the last twenty years. The health secretary recently proposed a series of laws aimed at curtailing tobacco use in Gandania. Profits from tobacco sales, however, account for ten percent of Gandania's annual revenues. Therefore, Gandania cannot afford to institute the proposed laws.

Which of the following, if true, most seriously weakens the argument?


(A) All health care in Gandania is government-funded.

(B) Implementing the proposed laws is not likely to cause a significant increase in the amount of tobacco Gandania exports.

(C) The percentage of revenue Gandania receives from tobacco sales has remained steady in recent years.

(D) Profits from tobacco sales far surpass any other single source of revenue for the Gandanian government.

(E) No government official in Gandania has ever previously proposed laws aimed at curtailing tobacco use.

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Originally posted by winskc on 16 Oct 2006, 20:49.
Last edited by Bunuel on 27 Sep 2018, 21:38, edited 1 time in total.
Renamed the topic and edited the question.
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 27 Jan 2013, 21:02
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nelz007 wrote:
in Gandania, where the government has a monopoly on tobacco sales, the incidence of smoking-related health problems has risen steadily for the last twenty years. The health secretary recently proposed a series of laws and aimed at curtailing tobacco use in Gandania. Profits from tobacco sales, however, account for ten percent of Gandania's annual revenues. Therefore, Gandania cannot afford to institute the proposed laws.

Which of the following,if true, most seriously weakens the argument?

A) All health care in gandania is government-funded.
B) Implementing the proposed laws is not likely to cause significant increase in the amount of tobacco gandania exports.
C) The percentage of revenue gandania recieves from tobaco sales has remained steady in recent years.
D) profits from tobaco sales far surpass any other single source of revenue for the gandandian government.
E) No government official in gandania has ever previously proposed laws aimed at curtailing tobacco use.

Could someone please explain the various answer choices. Thanks!


Responding to a pm:

Question Type: Weaken

We should try to weaken the conclusion.

Conclusion: Gandania cannot afford to institute the proposed laws.
Notice the author believes that Gandania cannot AFFORD to institute these laws i.e. the country will suffer financially if these laws are brought in (since tobacco accounts for 10% of the revenue). To weaken the conclusion, we need to bring in some reason because of which the country may not suffer financially even if these laws are brought into effect.
Also notice that the laws aimed at curtailing tobacco use IN Gandania, not in other countries. In the prethinking phase, all I could think of was perhaps the laws encourage export or something - very unethical but we don't need to comment on morals, just the financial aspect (anyway, it wasn't there in the options so no dilemma)

A) All health care in gandania is government-funded.
This option weakens our conclusion. If all health care in govt funded, the cost of health care would be increasing for the govt with tobacco use. If this law is brought into effect, the decrease in smoking could reduce the money spent in health care and hence the govt's finances could essentially stay the same even after the law is brought into effect. Hence, this weakens our conclusion that the govt cannot afford to institute the law. Answer (A)

B) Implementing the proposed laws is not likely to cause significant increase in the amount of tobacco gandania exports.
This option tells us that exports will not increase hence the govt will suffer financially. It strengthens the given conclusion instead of weakening it.

C) The percentage of revenue gandania recieves from tobaco sales has remained steady in recent years.
Out of scope

D) profits from tobaco sales far surpass any other single source of revenue for the gandandian government.
Strengthens the conclusion instead of weakening it.

E) No government official in gandania has ever previously proposed laws aimed at curtailing tobacco use.
Out of scope
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 25 Jun 2013, 23:24
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KalEl wrote:
Still don't understand why A is right?


Hi KalEl. I'm glad to help.

This question is tough. OA is A.


ANALYZE THE STIMULUS:

Fact: In Gandania, the government has a monopoly on tobacco sales,
Fact: However, Profits from tobacco sales account for 10% of Gandania's annual revenues.
Conclusion: Gandania cannot afford to institute the proposed laws.

The KEY of this question is the formula: GOV NET INCOME = GOV REVENUE - GOV EXPENSES.

The author says sales from tobacco account 10% of Government Revenue ==> He concludes that if the proposed laws are instituted ==> Gov Revenues decrease ==> Net Income will decrease ==> Government CAN NOT afford to institute these laws.

The assumption is: Government expenses will not decrease or stay the same after the proposed laws are instituted.

What if: The new laws make Government Revenue decrease, say 10%, but they also make Government Expenses decrease, say greater than 10% ==> Government Net Income will increase. That's the KEY.


ANALYZE EACH ANSWER:

A) All health care in gandania is government-funded.
Correct. Even the new laws make government revenues decrease, but what if they also make government expenses DECREASE too (because the government CAN DECREASE its expenses for health care regarding tobacco issues.) ==> Government Net income may not decrease or even increase.

B) Implementing the proposed laws is not likely to cause significant increase in the amount of tobacco gandania exports.
Wrong. Total sales = Domestic sales + Exports ==> New laws make both domestic sales and export decrease ==> Government total revenue will decrease for sure.

C) The percentage of revenue gandania recieves from tobaco sales has remained steady in recent years.
Wrong. Does not affect at all. "remain steady in recent years" does not mean "remain forever".

D) profits from tobaco sales far surpass any other single source of revenue for the gandandian government.
Wrong. If profits from tobacco sales are much greater than any other source ==> their decline will make a big shortfall of government revenue in the future.

E) No government official in gandania has ever previously proposed laws aimed at curtailing tobacco use.
Wrong. Out of scope for sure.


TAKEAWAY:
In real GMAT, when you see questions regarding Profit, Expenses, Revenue, Costs.....
* If the questions have ONLY profit/revenues ==> Make conclusion ==> Think about the opposite side: Costs/Expenses
* If the questions have ONLY Costs/Expenses ==> Make conclusion ==> Think about the opposite side: Revenue/Profit.

Hope it helps
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 17 Oct 2006, 16:01
By spending less on health care, the gov. will cut an important source of debt in the LR. Therefore, A would weaken the argument.
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 19 Nov 2008, 04:57
winskc wrote:
In Gandania, where the government has a monopoly on tobacco sales, the incidence of smoking-related health problems has risen steadily for the last twenty years. The health secretary recently proposed a series of laws aimed at curtailing tobacco use in Gandania. Profits from tobacco sales, however, account for ten percent of Gandania’s annual revenues. Therefore, Gandania cannot afford to institute the proposed laws.

Which of the following, if true, most seriously weakens the argument?

A. All health care in Gandania is government-funded.
B. Implementing the proposed laws is not likely to cause a significant increase in the amount of tobacco Gandania exports.
C. The percentage of revenue Gandania receives from tobacco sales has remained steady in recent years.
D. Profits from tobacco sales far surpass any other single source of revenue for the Gandanian government.
E. No government official in Gandania has ever previously proposed laws aimed at curtailing tobacco use.


Only A & B are in contention. But it does not specify if what percentage of the tobacco..does the govt exports.. if it exports all, then, it also weakens.
But again..A is far more stronger choice for B to let in. :) I will go for A, what is OA.. ?
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 19 Nov 2008, 16:33
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can't be D.

Conclusion is G cannot afford to institute the proposed laws that curtail the use of tobacco.

We need some thing that says G can afford to or have to afford.

Profits from tobacco sales far surpass any other single source of revenue for the Gandanian government, but still those profits make up only 10% of the revenues and the remaining 90% is untouched. Also it does not say how much will profits go down by to make such decision.

But with A, all HC funded by govt, govt can eliminate health costs and improve public health at the expense of profits from tobacco.

hence A
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 20 Nov 2008, 12:58
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Where do these questions with the strange OA's come from? icandy is correct: B (if it is relevant at all) would strengthen the argument, not weaken it. The correct answer is A.

As for D, the fact that profits from tobacco are the single greatest source of revenue tells us nothing at all about how much those profits would decline because of the laws, nor about how much could or could not be replaced by other revenue sources.

If anything, D might weaken the argument by showing that the WORST possible outcome would be to lose a maximum of 10% of revenues.
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 28 Jan 2013, 02:52
nelz007 wrote:
in Gandania, where the government has a monopoly on tobacco sales, the incidence of smoking-related health problems has risen steadily for the last twenty years. The health secretary recently proposed a series of laws and aimed at curtailing tobacco use in Gandania. Profits from tobacco sales, however, account for ten percent of Gandania's annual revenues. Therefore, Gandania cannot afford to institute the proposed laws.

Which of the following,if true, most seriously weakens the argument?

A) All health care in gandania is government-funded. CORRECT because if u look more closely to this option, you can deducte from it that if the proposed laws were to be instituted, it will reduce smoking ---> health care GOOD ----> the goverment will compensate the profits from tobacco sales by the economy released through health care
B) Implementing the proposed laws is not likely to cause significant increase in the amount of tobacco gandania exports. Incorrect, we are not concerned with gandania exports
C) The percentage of revenue gandania recieves from tobaco sales has remained steady in recent years. Incorrect, no value added about whether gandania can or can not afford to institute the proposed laws
D) profits from tobaco sales far surpass any other single source of revenue for the gandandian government. Incorrect because if this is true, Gandania for sure, cannot afford to institute the proposed laws, hence this option strenghtens the conclusion
E) No government official in gandania has ever previously proposed laws aimed at curtailing tobacco use. Incorrect, so if this is true, how do we can figure out whether the proposed laws gonna work or not .

Could someone please explain the various answer choices. Thanks!


Hence, only A weakens properly the argument
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 24 Jun 2013, 23:52
Still don't understand why A is right?

Arguement: Profits from Tobacco = 10% of Gandania'a Revenue. So they should not implement this law.

A. All health care in Gandania is government-funded. <-- How does this come into picture? Isn't this Out of scope?

We can arrive at this by eliminating all other options but how is this justified?
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 19 May 2014, 05:49
For me also A - more smoker == more patients == more gov spending
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Re: In Gandania, where the government has a monopoly on tobacco sales, the  [#permalink]

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New post 08 Jun 2019, 10:20
Premise:
1. healths problems from smoking up
2. proposed law = tobacco use down
3. tobacco profits = 10% of revenue
Conclusion:
weaken --> proposed law is not economically feasible


(A) All health care in Gandania is government-funded.
-- I actually marked it off but came back after the other ones were even worse... the justification is that they can afford to absorb the decrease in revenue from tobacco sales if they increase the costs of medical treatment.
(B) Implementing the proposed laws is not likely to cause a significant increase in the amount of tobacco Gandania exports.
-- if the modifier "not" wasn't present this would be a great answer. But, since their exports won't increase, they can't make up the monetary deficit from curtailing tobacco use. This strengthens the conclusion.
(C) The percentage of revenue Gandania receives from tobacco sales has remained steady in recent years.
-- irrelevant, doesn't help us determine if they can implement the law or not
(D) Profits from tobacco sales far surpass any other single source of revenue for the Gandanian government.
-- irrelevant, we aren't concerned with comparing the 10% profits
(E) No government official in Gandania has ever previously proposed laws aimed at curtailing tobacco use.
-- irrelevant, the history of legislation doesn't matter
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Re: In Gandania, where the government has a monopoly on tobacco sales, the   [#permalink] 08 Jun 2019, 10:20
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