GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Jul 2018, 11:41

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

In the two years since the state legalized the sale and use of marijua

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
avatar
G
Joined: 07 Aug 2016
Posts: 88
Location: India
Concentration: Marketing, Operations
GMAT 1: 690 Q48 V35
GPA: 4
WE: Engineering (Telecommunications)
Reviews Badge
In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 19 Aug 2017, 11:24
4
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

69% (01:48) correct 31% (01:27) wrong based on 187 sessions

HideShow timer Statistics

In the two years since the state legalized the sale and use of marijuana, Kerry County has seen a dramatic increase in marijuana use. This has caused an issue both with Kerry County’s largely older and more-conservative population and with local businesses that complain of the smell. To significantly reduce the use of marijuana within the county, Kerry County plans to implement a 50% sales tax on the sale of marijuana, believing that the higher cost will serve as a deterrent to many local marijuana users.

Each of the following constitutes a reason to believe that Kerry County’s plan will not achieve its goal EXCEPT:


A. Despite the legalization of marijuana, there remains a non-trivial black market for the illegal sale of marijuana in Kerry County.

B. Marijuana use has been most popular among young professionals, a demographic that tends to have a large amount of disposable income.

C. Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco.

D. Kerry County is among the smallest counties in the state, with no location that is more than a 20-minute drive from a neighboring county.

E. The state law that legalized marijuana also allows residents to grow a small amount of marijuana for personal use.​
1 KUDOS received
Intern
Intern
avatar
S
Joined: 31 Mar 2017
Posts: 37
GMAT 1: 710 Q45 V42
GMAT 2: 730 Q50 V39
GPA: 3.73
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 19 Aug 2017, 11:34
1
gauravraos wrote:
In the two years since the state legalized the sale and use of marijuana, Kerry County has seen a dramatic increase in marijuana use. This has caused an issue both with Kerry County’s largely older and more-conservative population and with local businesses that complain of the smell. To significantly reduce the use of marijuana within the county, Kerry County plans to implement a 50% sales tax on the sale of marijuana, believing that the higher cost will serve as a deterrent to many local marijuana users.

Each of the following constitutes a reason to believe that Kerry County’s plan will not achieve its goal EXCEPT:

A. Despite the legalization of marijuana, there remains a non-trivial black market for the illegal sale of marijuana in Kerry County.
B. Marijuana use has been most popular among young professionals, a demographic that tends to have a large amount of disposable income.
C. Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco.
D. Kerry County is among the smallest counties in the state, with no location that is more than a 20-minute drive from a neighboring county.
E. The state law that legalized marijuana also allows residents to grow a small amount of marijuana for personal use.​

t
Hmm....I struggled between C and E in this question. I picked C in the end but I'm not too confident

Our conclusion is that "higher cost will deter many marijuana users". We are looking for an answer that will NOT weaken the conclusion

A. Will weaken. If there's a black market, users will go to the back market to buy marijuana after the tax increase
B. Will weaken. Since the typical users have a lot money, then they will continue buying the marijuana even if they are more expensive
D. Will weaken. If the county is near other counties, the users can easily go to the other counties to buy marijuana

C. Unsure....we don't know the effects of the law on the other drugs....if the laws worked then it will weaken the argument. If the laws di dnot work, then it willnot weaken the argument.

E. I guess this will weaken it? If you can grow marijuana, then you can just grow it now instead of buying it. The only thing that stopped me is that the answer notes that only "a small amount of marijuana" can be grown and the prompt is talking about the drastic increase of marijuana....so even if a user grows a small amount of marijuana, the user may still be deterred from using a lot of marijuana due to the high costs. but I still think this is a better weakener than C

Interested to hear the OA and explanation between C and E. Thanks!
Director
Director
avatar
P
Joined: 14 Nov 2014
Posts: 662
Location: India
Schools: Rotman '20 (S)
GMAT 1: 700 Q50 V34
GPA: 3.76
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 20 Aug 2017, 01:25
Will go with C here..

For E- if ppl can grow marijuana ,they no need to worry about sales tax n all..
Intern
Intern
avatar
B
Joined: 19 Jan 2016
Posts: 47
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 20 Aug 2017, 01:59
D - We don't know whether the other counties sell marijuana or have a illegal network that sells it, the residents can go to other counties but what if marijuana is only available in Kerry county.

C is a 50-50 - If the sin tax is effective then it will strengthen but if not then it will act as a undermining choice.

C vs D - D looks better here
Current Student
avatar
B
Joined: 22 Sep 2016
Posts: 197
Location: India
GMAT 1: 710 Q50 V35
GPA: 4
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 20 Aug 2017, 20:42
anuj11 wrote:
D - We don't know whether the other counties sell marijuana or have a illegal network that sells it, the residents can go to other counties but what if marijuana is only available in Kerry county.

C is a 50-50 - If the sin tax is effective then it will strengthen but if not then it will act as a undermining choice.

C vs D - D looks better here


I agree!
Kerry county was always small. It's not that after the legalisation of marijuana, it has become smaller, or anything. Option D is irrelevant. The premise is that after legalisation, people started smoking a lot and local businesses complained about the smell. Now, if people were already going to other counties, the local businesses would stop complaining and maybe people will stop smoking because of the distance, or the effort. They might even smoke in the shop itself (which will be in the other county)
Option C might still have a possibility of weakening, as the population might be used to the "sin tax" and hence the implementation of a 50% tax won't matter much.


Summoning the experts!
mikemcgarry , DmitryFarber , daagh sir, abhimahna , WaterFlowsUp , carcass .
Please take a look and correct the OA, if required. :)
_________________

Desperately need 'KUDOS' !!

Manager
Manager
avatar
B
Joined: 30 Mar 2017
Posts: 69
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 20 Aug 2017, 21:26
Between C and D, D won't let the plan succeed as 'no' location is more than 20 mins from Kerry county. So if the prices were high , people can go to any neighbouring county to get weed where it might be cheaper. Remember, the whole state has legalised weed. This leaves us with only C.E is negated as people can start growing their own weed if prices become higher.

Sent from my Moto G (5) Plus using GMAT Club Forum mobile app
Manager
Manager
avatar
B
Joined: 20 Jan 2016
Posts: 209
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 21 Aug 2017, 06:33
anuj11 wrote:
D - We don't know whether the other counties sell marijuana or have a illegal network that sells it, the residents can go to other counties but what if marijuana is only available in Kerry county.

C is a 50-50 - If the sin tax is effective then it will strengthen but if not then it will act as a undermining choice.

C vs D - D looks better here


Hi Anuj,

The answer cannot be D because it says the STATE legalised. So other counties most likely also sell marijuana and since its closeby, the increased taxes to reduce selling of marijuana fails. Hence this weakens the argument.

Hope this helps.
Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 47084
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 17 May 2018, 21:39
gauravraos wrote:
In the two years since the state legalized the sale and use of marijuana, Kerry County has seen a dramatic increase in marijuana use. This has caused an issue both with Kerry County’s largely older and more-conservative population and with local businesses that complain of the smell. To significantly reduce the use of marijuana within the county, Kerry County plans to implement a 50% sales tax on the sale of marijuana, believing that the higher cost will serve as a deterrent to many local marijuana users.

Each of the following constitutes a reason to believe that Kerry County’s plan will not achieve its goal EXCEPT:


A. Despite the legalization of marijuana, there remains a non-trivial black market for the illegal sale of marijuana in Kerry County.

B. Marijuana use has been most popular among young professionals, a demographic that tends to have a large amount of disposable income.

C. Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco.

D. Kerry County is among the smallest counties in the state, with no location that is more than a 20-minute drive from a neighboring county.

E. The state law that legalized marijuana also allows residents to grow a small amount of marijuana for personal use.​


VERITAS PREP OFFICIAL SOLUTION:



In any Plan/Strategy question, it is important to determine exactly what the goal of the plan is. Here the goal is to "substantially reduce marijuana use," which you should see is different from related goals (perhaps to reduce marijuana sales or to eliminate marijuana use). Precision in wording and understanding the exact goal are keys to these questions.

You can anticipate reasons that raising the sales tax and therefore the cost of marijuana might not result in a significant decrease in marijuana use. Focusing on use - and not sales - provides a great entry point: what if people find a way to get marijuana without having to buy it? Choice E suggests that they might be able to simply grow it on their own and avoid both the price and the tax.

What if they can buy it somewhere else and avoid the tax? That leads to answer choices:

A: If people can buy it on the black market and avoid paying the sales tax, then they can still use it without being affected by the tax.

D: If people can buy it nearby in a county that doesn't have the tax, then they'll avoid the tax.

What if the tax just isn't that big of a deterrent? Choice B suggests that the largest group of users may must not care about paying more to use marijuana.

That leaves choice C, which you should see does not directly address marijuana at all. Even if similar taxes for similar goods are already on the books, that still means that the net cost of marijuana will markedly increase under the sales tax. If that is, indeed, a deterrent then the taxes on similar goods won't matter. C does not attack the problem head on, and is therefore the only answer choice that does not give reason to believe that the plan will not work.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Intern
Intern
avatar
B
Joined: 29 Mar 2015
Posts: 35
GMAT 1: 620 Q48 V28
GMAT ToolKit User Reviews Badge
Re: In the two years since the state legalized the sale and use of marijua [#permalink]

Show Tags

New post 14 Jun 2018, 08:07
gauravraos wrote:
In the two years since the state legalized the sale and use of marijuana, Kerry County has seen a dramatic increase in marijuana use. This has caused an issue both with Kerry County’s largely older and more-conservative population and with local businesses that complain of the smell. To significantly reduce the use of marijuana within the county, Kerry County plans to implement a 50% sales tax on the sale of marijuana, believing that the higher cost will serve as a deterrent to many local marijuana users.

Each of the following constitutes a reason to believe that Kerry County’s plan will not achieve its goal EXCEPT:




C. Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco.


in my opinion the issue with option C is

we are not 100% sure about the outcome of TAX, what if the tax on alcohol and tobacco is just 1% or 10% than it wont be a deterrent for a person.

here we are going with common sense that levying additional tax reduces the consumption of an item, but if we put that same theory in real life every year government in india increases tax on cigarettes still number of smokers are increasing.

kindly any expert throw some light on it
Re: In the two years since the state legalized the sale and use of marijua   [#permalink] 14 Jun 2018, 08:07
Display posts from previous: Sort by

In the two years since the state legalized the sale and use of marijua

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.