Understanding the Contrast:
- City X: Residents spend a greater percentage of their income on housing costs.
- City Y: Considered less affordable than City X according to Wealth Magazine.
- Both cities: Have high costs of insurance and fuel.
At first glance, this seems contradictory. If people in City X spend more of their income on housing, shouldn't City X be less affordable than City Y? Our task is to find an explanation that resolves this apparent contradiction.
Evaluating the Answer Choices:
A. A greater percentage of residents of City Y send their children to private schools than is the case in City X.
- This suggests higher education expenses in City Y.
- However, Wealth Magazine ranks cities based on overall affordability, not just education costs.
- This might contribute to the cost of living, but it does not explain why City Y is ranked as less affordable overall while City X has higher housing costs.
Eliminate.
B. Unlike City Y, City X has an efficient and inexpensive public transportation system.
- This means City Y’s residents may have to spend more on transportation such as car ownership, fuel, and insurance.
- Even though housing costs are lower in City Y, expensive transportation could make it less affordable overall.
This directly explains the ranking. Keep this option.
C. The average price of a new house is higher in City X than in City Y.
- This supports the idea that City X has higher housing costs, but we already know this.
- It does not explain why City Y is considered less affordable in the rankings.
Eliminate.
D. A number of high-priced restaurants and boutiques have recently opened in City Y.
- This suggests luxury spending opportunities, but these are optional expenses rather than necessary costs.
- It is unlikely that Wealth Magazine bases affordability rankings on discretionary spending like dining and shopping.
Eliminate.
E. Several large businesses have recently relocated from City Y to City X.
- This might suggest a better job market in City X, which could increase incomes there.
- However, this does not directly address affordability or explain why City Y is ranked as less affordable.
Eliminate.
Final Answer:
B. Unlike City Y, City X has an efficient and inexpensive public transportation system.
This explains why City Y is less affordable overall. Its residents spend more on transportation, making their total cost of living higher, despite City X having more expensive housing.