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For Question 1 - i dont think 1 (b) is right

Quote:
B. challenge the interpretation of a piece of evidence on which certain business historians have based their conclusions

In (B) - When you read the red - isnt the red talking about the hypothetical view ? [drop in tax revenues because of a massive drop in levels of commercial activity in Marseilles]

If the red is talking about the hypothetical view - then the purple doesnt make sense

Why ? because we dont know how many business historians believe in the hypothetical view

The author brings up the hypothetical view -- but do historians believe in the 2nd hypothetical view ?

Most business historians believe in the 1st view [30 % decline in revenues generated by cottimo, an import tax collected on the cargo of ships returned to Maseilles from Middle eastern ports specifically] but the passage never mentions if business historians believe in the 2nd view at all ?
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GMATNinja Please elaborate option A and B for question 1
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Most business historians give the impression that Marseilles, a French Mediterranean city, was in dire economic straits from 1700 to 1715, when France was at war in the Mediterranean area. Their conclusions are based partly on a documented 30 percent decline in revenue generated by the cottimo, an import tax collected on the cargo of ships returning to Marseilles from various Middle Eastern ports. The decline in revenue from this particular tax could hypothetically have been caused by a massive drop in levels of commercial activity in Marseilles. However, during the war years Marseilles' role as a grain importer grew, and most foodstuffs had always been—and remained—exempt from the tax. Also, due to a shift in trading patterns caused by the war, the city's merchants did more business with those Middle Eastern cities on whose trade the cottimo had always been collected at a lower rate. Moreover, during this period, a change occurred in the thinking of Marseilles merchants, who, in response to the war's challenges, displayed a new sense of daring. They sent some ships outside the Mediterranean and began to engage in trade in the Atlantic and Pacific. This was significant, since the cottimo was collected only on goods entering the city from Mediterranean ports in the Middle East.

Summary: Many business historians believe Marseilles a French Mediterranean city was in difficult economic situations from 1700 to 1715 because of french war in Mediterranean sea as during this period revenue from import tax on cargo ships was declined 30 percent. This decline could be the result of decline in commercial activity. In contrast, Marseilles imported more grain and also most foodstuffs had remain exempt from import tax. Also, because of war, city merchants do more trade with middle eastern cities with whom import tax (cottimo) had always been low. Also Marseilles merchants tried to do trade with atlantic and pcific region & since import tax was collected on goods entering from Mediterranean ports, this also can have a significant impact on tax collected.

1. The primary purpose of the passage is to

A. correct a misimpression about the conclusions actually drawn by most business historians
It will be misimpression if it tries to draw conclusion only from the information without changing the interpretation.
B. challenge the interpretation of a piece of evidence on which certain business historians have based their conclusions
Correct: Evidence was decrease in import tax based on which conclusion was made which was corrected in passage.

C. suggest the effects of a particular historical event on a city's commerce
D. explain why scholars, on the basis of information available to them, ought to have reached certain conclusions about trade
E. argue that, contrary to widespread belief, certain changes in trading patterns actually are signs of economic expansion

2. According to the author, most business historians see the decrease in cottimo revenues in Marseilles as providing evidence of which of the following?

A. A decline in the city's economy
correct: Most business historians give the impression that Marseilles, a French Mediterranean city, was in dire economic straits
B. A change in entrepreneurial thinking
C. A shift in Mediterranean patterns of trade
D. An increase in trade outside the Mediterranean
E. A drop in the amount of goods imported for later reexport

3. If the information in the passage is accurate, which of the following must be concluded?

A. Most business historians are wrong in believing that France's war in the Mediterranean had adverse effects on commercial activity in the Mediterranean.
It has effects thats why merchants tried to sent ships to atlantic & pacific and also revenue was declined as mentioned "The decline in revenue from this particular tax could hypothetically have been caused by a massive drop in levels of commercial activity in Marseilles"
B. The decline in tax revenues in Marseilles during the period 1700–1715 was only temporary, since it was due to short-term shifts in trade patterns.
Not mentioned.
C. Merchants in Marseilles paid less in total taxes to the city during the period 1700–1715 than they did in earlier periods.
Not mentioned about earlier periods.
D. Decreases in cottimo revenue in Marseilles during the period 1700–1715 do not necessarily indicate concurrent decreases in the city's overall commercial activity.
correct: As most foodstuffs are exempted, hence decrease in cottimo revenue in Marseilles during the period 1700–1715 do not necessarily indicate concurrent decreases in the city's overall commercial activity

E. Losses in Marseilles due to shifts in trading patterns in the Mediterranean during the period 1700–1715 were adequately balanced by the expansion of the city's trade in other areas of the world.
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