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

 It is currently 18 Sep 2019, 19:56

### 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

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

# Many states seek to reduce their budget deficits by cutting

Author Message
TAGS:

### Hide Tags

Senior Manager
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 482
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Many states seek to reduce their budget deficits by cutting  [#permalink]

### Show Tags

Updated on: 07 Nov 2013, 16:44
00:00

Difficulty:

5% (low)

Question Stats:

88% (01:26) correct 12% (01:49) wrong based on 402 sessions

### HideShow timer Statistics

Many states seek to reduce their budget deficits by cutting state funding for colleges and universities. However, many students who cannot afford the tuition increases resulting from the decreased state funding will not be able to earn a college education and, as a result, will not be able to move into higher paying careers. Consequently, the state will lose future income tax revenues.

Which of the following, if true, most strengthens the argument above?

A. Many states that have already reduced their funding for colleges and universities have seen declines in income tax revenues in the following years.

B. Many states that have not cut education funding have seen budget deficits grow larger.

C. States that do not cut their education funding sometimes also experience declines in tax revenues

D. Cuts to colleges and universities affect two-year colleges and well as four-year colleges.

E. The size of the budget deficit is usually too great to be eliminated by reductions in higher education funding alone.

oe to follow

Originally posted by avohden on 04 Nov 2013, 22:23.
Last edited by avohden on 07 Nov 2013, 16:44, edited 2 times in total.
Manager
Joined: 10 Sep 2013
Posts: 71
Re: Many states seek to reduce their budget deficits by cutting  [#permalink]

### Show Tags

04 Nov 2013, 22:39
1
Premise 1: Many states seek to reduce their budget deficits by cutting state funding for colleges and universities
premise2 : However, many students who cannot afford the tuition increases resulting from the decreased state funding will not be able to earn a college education and, as a result, will not be able to move into higher paying careers.
Conclusion: the state will lose future income tax revenues

Basically: State cuts funding-->Students cannot afford education---> No high paying careers--> therefore no tax revenues

We want to strengthen the argument. In this question, we are looking for ways that strengthen the premise or provide evidence for the above.

A - does that by showing that this by showing that when they reduced finding in the past, they saw decline in revenues. Bingo!
B - Not concerned about budget deficits
C - This weakens the arguments by saying that even is they dont cut education funding, they see decline in tax revenues
D - As far as they affect colleges, it does not matter if they are 2 yr colleges or 4 yr colleges
E - Again, we are not concerned about budget deficits

_________________
Kudos if I helped
Senior Manager
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 482
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Re: Many states seek to reduce their budget deficits by cutting  [#permalink]

### Show Tags

04 Nov 2013, 23:04
Official Explanation

This is a Strengthen question. The conclusion is “the state will lose future income tax revenues” from cutting funding for colleges and universities. This is because those students cannot move into higher paying jobs and will pay less in taxes. Choice A is a direct analogy, with other states having taken the same action and experiencing the same result. This answer does not guarantee the conclusion but it certainly strengthens it.

Choice B mentions those states that have not cut education funding; this does not apply to the argument since in this argument the state did cut funding. Choice C also mentions states that do not cut education funding and also does not apply. Choice D indicates that cuts will impact two-year and four-year colleges but does not say anything that would support a decline in tax revenues. Choice E concerns the size of the budget deficit but not whether decreased education funding will result in lower tax revenues in the future.
Intern
Joined: 23 Dec 2014
Posts: 17
Re: Many states seek to reduce their budget deficits by cutting  [#permalink]

### Show Tags

02 Mar 2015, 07:18
A because it is the only choices which is about th3 result of cutting the budget
Director
Joined: 07 Aug 2011
Posts: 505
GMAT 1: 630 Q49 V27
Re: Many states seek to reduce their budget deficits by cutting  [#permalink]

### Show Tags

08 Mar 2015, 02:34
avohden wrote:
Official Explanation

This is a Strengthen question. The conclusion is “the state will lose future income tax revenues” from cutting funding for colleges and universities. This is because those students cannot move into higher paying jobs and will pay less in taxes. Choice A is a direct analogy, with other states having taken the same action and experiencing the same result. This answer does not guarantee the conclusion but it certainly strengthens it.

Choice B mentions those states that have not cut education funding; this does not apply to the argument since in this argument the state did cut funding. Choice C also mentions states that do not cut education funding and also does not apply. Choice D indicates that cuts will impact two-year and four-year colleges but does not say anything that would support a decline in tax revenues. Choice E concerns the size of the budget deficit but not whether decreased education funding will result in lower tax revenues in the future.

we all know premise , i am not rewriting it .
conclusion : Less education funding will result in fewer number of well educated student who will endup with high salaries'

List of assumptions:
1) Students who would have got education, had the education funding be there, would surely get into high paying jobs.
2) budget deficit is large enough to impact the education funding to significant levels .
there can a few other assumptions but to start with the given answer choices 2 are enough .
I am not yet able to understand why E is wrong as it clearly indicates that the education funding will be dramatically impacted .
Just because other state have low income tax is not a weakner for sure but if we compare it to E , E looks like a strong contender than A .

Re: Many states seek to reduce their budget deficits by cutting   [#permalink] 08 Mar 2015, 02:34
Display posts from previous: Sort by